California Senate Bill SB472 Latest Draft

 BILL NUMBER: SB 472INTRODUCED BILL TEXT INTRODUCED BY Senator Cannella FEBRUARY 26, 2015 An act to amend Section 17052.6 of the Revenue and Taxation Code, relating to taxation. LEGISLATIVE COUNSEL'S DIGEST SB 472, as introduced, Cannella. Income tax credit: child and dependent care expenses. The Personal Income Tax Law allows various credits against the taxes imposed by that law, including a credit, in modified conformity to a credit allowed by federal income tax laws, in an amount equal to specified percentages of allowable federal credit for employment-related child and dependent care expenses. This bill would make technical, nonsubtsantive changes to these provisions. Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 17052.6 of the Revenue and Taxation Code is amended to read: 17052.6. (a) For each taxable year beginning on or after January 1, 2000, there shall be allowed as a credit against the "net tax", as defined in Section 17039, an amount determined in accordance with Section 21 of the Internal Revenue Code,  relating to expenses for household and dependent care services necessary for gainful employment,  except that the amount of the credit shall be a percentage, as provided in subdivision (b) of the allowable federal credit without taking into account whether there is a federal tax liability. (b) For the purposes of subdivision (a), the percentage of the allowable federal credit shall be determined as follows: (1) For taxable years beginning before January 1, 2003: The percentage If the adjusted gross income of is: credit is: $40,000 or less.............. 63% Over $40,000 but not over 53% $70,000...................... Over $70,000 but not over 42% $100,000..................... Over $100,000................ 0% (2) For taxable years beginning on or after January 1, 2003: The percentage If the adjusted gross income of is: credit is: $40,000 or less.............. 50% Over $40,000 but not over 43% $70,000...................... Over $70,000 but not over 34% $100,000..................... Over $100,000................ 0% (c) For purposes of this section, "adjusted gross income" means adjusted gross income as computed for purposes of paragraph (2) of subdivision (h) of Section 17024.5. (d) The credit authorized by this section shall be  limited,   limited  as follows: (1) Employment-related expenses, within the meaning of Section 21 of the Internal Revenue Code, shall be limited to expenses for household services and care provided in this state. (2) Earned income, within the meaning of Section 21(d) of the Internal Revenue Code, shall be limited to earned income subject to tax under this part. For purposes of this paragraph, compensation received by a member of the  armed forces   Armed Forces  for active services as a member of the  armed forces,   Armed Forces,  other than pensions or retired pay, shall be considered earned income subject to tax under this part, whether or not the member is domiciled in this state. (e) For purposes of this section, Section 21(b)(1) of the Internal Revenue Code, relating to a qualifying individual, is modified to additionally provide that a child, as defined in Section 151(c)(3) of the Internal Revenue Code, shall be treated, for purposes of Section 152 of the Internal Revenue Code, as applicable for purposes of this section, as receiving over one-half of his or her support during the calendar year from the parent having custody for a greater portion of the calendar year, that parent shall be treated as a "custodial parent," within the meaning of Section 152(e) of the Internal Revenue Code, as applicable for purposes of this section, and the child shall be treated as a qualifying individual under Section 21(b)(1) of the Internal Revenue Code, as applicable for purposes of this section, if both of the following apply: (1) The child receives over one-half of his or her support during the calendar year from his or her parents who never married each other and who lived apart at all times during the last six months of the calendar year. (2) The child is in the custody of one or both of his or her parents for more than one-half of the calendar year. (f) The amendments to this section made by Section 1.5 of Chapter 824 of the Statutes of 2002 shall apply only to taxable years beginning on or after January 1, 2002. (g) The amendments made to this section by  the act adding this subdivision   Chapter 14 of the Statutes of 2011  shall apply to taxable years beginning on or after January 1, 2011.