BILL NUMBER: SB 1381INTRODUCED BILL TEXT INTRODUCED BY Senator Mendoza FEBRUARY 19, 2016 An act to add Section 17053 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGEST SB 1381, as introduced, Mendoza. Personal income taxes: credit: teachers. The Personal Income Tax Law allows various credits against the taxes imposed by that law. This bill would, for taxable years beginning on or after January 1, 2017, allow a credit under the Personal Income Tax Law in an amount equal to $5,000 to a qualified taxpayer, as defined to include specified full-time teachers. This bill would state the intent of the Legislature to enact legislation to provide that the credit amount in excess of tax liability would be refundable in those years in which an appropriation for that purpose is made by the Legislature and includes findings relating to that appropriation. This bill would take effect immediately as a tax levy. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 17053 is added to the Revenue and Taxation Code, to read: 17053. (a) For each taxable year beginning on or after January 1, 2017, there shall be allowed to a qualified taxpayer a credit against the "net tax," as defined in Section 17039, in an amount equal to five thousand dollars ($5,000). (b) For the purposes of this section: (1) "Full time" means a minimum of 35 hours per week worked. (2) "Qualified taxpayer" means a full-time teacher credentialed pursuant to Sections 80021 to 80025, inclusive, of Chapter 1 of Division 8 of Title 5 of the California Code of Regulations, if he or she serves as the teacher of record for a classroom for at least one school day during the taxable year in which the credit is claimed. "Qualified taxpayer" shall not include a teacher who solely possesses a 30-day substitute teaching permit, as defined in Section 80025 of Chapter 1 of Division 8 of Title 5 of the California Code of Regulations. (c) (1) Subject to paragraph (2), in the case where the credit allowed by this section exceeds the "net tax" the excess may be carried over to reduce the "net tax," in the following year, and succeeding years if necessary, until the credit is exhausted. (2) It is the intent of the Legislature to enact legislation to provide that in the case where the credit allowed by this section exceeds the "net tax," the excess, in lieu of the carry forward pursuant to paragraph (1), may be refunded to taxpayers, upon appropriation by the Legislature. (d) Section 41 does not apply to the tax credit allowed by this section. SEC. 2. The Legislature finds and declares that it is the intent of the Legislature that, pursuant to legislation to be enacted by the Legislature, the state would treat an appropriation that would be made as described in paragraph (2) of subdivision (c) of Section 17053 of the Revenue and Taxation Code as a tax expenditure program that would have no impact on school funding, state reserves, or debt-related payments. To this end, any appropriation for the refundable portion of the tax credit that would be allowed pursuant to legislation by the Legislature would not reduce state obligations set forth in Sections 8, 20, and 21 of Article XVI of the California Constitution. SEC. 3. This act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect.