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California Assembly Bill AB2384

California 2019-2020 Regular Session

California Assembly Bill AB2384 Compare Versions

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11 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 2384Introduced by Assembly Member Choi(Principal coauthors: Senators Bates, Chang, and Dahle)February 18, 2020 An act to amend Sections 17072, 17131.4, 17131.5, 17215.1, and 17215.4 of, and to add Section 17217 to, the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.LEGISLATIVE COUNSEL'S DIGESTAB 2384, as introduced, Choi. Income tax: health savings accounts.The Personal Income Tax Law authorizes various deductions in computing income that is subject to tax under that law.This bill, for taxable years beginning on or after January 1, 2020, and before January 1, 2025, would allow a deduction in computing adjusted gross income in connection with health savings accounts in conformity with federal law. In general, the deduction would be an amount equal to the aggregate amount paid in cash during the taxable year by, or on behalf of, an eligible individual, as defined, to a health savings account of that individual, as provided. The bill, for taxable years beginning on or after January 1, 2020, and before January 1, 2025, would also provide related conformity to that federal law with respect to the allowance of rollovers from Archer Medical Savings Accounts, health flexible spending arrangements, or health reimbursement accounts to a health savings account, and penalties in connection therewith.This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 17072 of the Revenue and Taxation Code is amended to read:17072. (a) Section 62 of the Internal Revenue Code, relating to adjusted gross income defined, shall apply, except as otherwise provided.(b) Section 62(a)(2)(D) of the Internal Revenue Code, relating to certain expenses of elementary and secondary school teachers, shall not apply.(c) Section 62(a)(21) of the Internal Revenue Code, relating to attorneys fees relating to awards to whistleblowers, shall not apply.(d) For taxable years beginning on or after January 1, 2020, and before January 1, 2025, Section 62(a)(19) of the Internal Revenue Code, relating to health savings accounts, shall apply, as modified by Section 17217.SEC. 2. Section 17131.4 of the Revenue and Taxation Code is amended to read:17131.4. (a) Section 106(d) of the Internal Revenue Code, relating to contributions to health savings accounts, shall not apply.(b) This section shall apply to taxable years beginning on or after January 1, 2005, and before January 1, 2020, and to taxable years beginning on or after January 1, 2025.SEC. 3. Section 17131.5 of the Revenue and Taxation Code is amended to read:17131.5. (a) Section 125(d)(2)(D) of the Internal Revenue Code, relating to the exception for health savings accounts, shall not apply.(b) This section shall apply to taxable years beginning on or after January 1, 2005, and before January 1, 2020, and to taxable years beginning on or after January 1, 2025.SEC. 4. Section 17215.1 of the Revenue and Taxation Code is amended to read:17215.1. (a) Section 220(f)(5) of the Internal Revenue Code, relating to rollover contributions, shall not apply.(b) This section shall apply to taxable years beginning on or after January 1, 2005, and before January 1, 2020, and to taxable years beginning on or after January 1, 2025.SEC. 5. Section 17215.4 of the Revenue and Taxation Code is amended to read:17215.4. (a) Section 223 of the Internal Revenue Code, relating to health savings accounts, shall not apply.(b) This section shall apply to taxable years beginning on or after January 1, 2005, and before January 1, 2020, and to taxable years beginning on or after January 1, 2025.SEC. 6. Section 17217 is added to the Revenue and Taxation Code, to read:17217. For taxable years beginning on or after January 1, 2020, and before January 1, 2025, all of the following shall apply:(a) Section 223 of the Internal Revenue Code, relating to health savings accounts, shall apply, except as otherwise provided.(b) Section 223(e)(1) of the Internal Revenue Code shall be modified by substituting the phrase Section 17651 for the phrase section 511 (relating to imposition on tax of unrelated business income of charitable, etc. organizations) contained therein.(c) Section 223(f)(4)(A) of the Internal Revenue Code shall not apply.SEC. 7. For purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares all of the following with respect to the provisions of this act:(a) The specific goals, purposes, and objectives that this act will achieve are:(1) To provide a tax incentive to motivate California families to open and contribute to a health savings account, for the purpose of saving for future health expenses, thereby encouraging more Californians to pursue a means of preparing for future health-related expenses.(2) To reduce the amount of debt related to health care on a dollar-for-dollar basis, thereby increasing a persons ability to purchase other products that help stimulate economic activity.(3) To bring California into conformity with federal tax law regarding the treatment of health savings accounts.(b) Detailed performance indicators for the Legislature to use in determining whether this act meets the goals, purposes, and objectives listed in subdivision (a) are:(1) The number of deductions allowed by the Franchise Tax Board pursuant to this act with respect to each taxable year for which this act is operative.(2) The total dollar amount of the deductions described in paragraph (1).(c) The Franchise Tax Board shall report the information described in subdivision (b) to the Legislature in every odd-numbered year during which the provisions of the act adding this section are operative.SEC. 8. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
22
33 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Assembly Bill No. 2384Introduced by Assembly Member Choi(Principal coauthors: Senators Bates, Chang, and Dahle)February 18, 2020 An act to amend Sections 17072, 17131.4, 17131.5, 17215.1, and 17215.4 of, and to add Section 17217 to, the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.LEGISLATIVE COUNSEL'S DIGESTAB 2384, as introduced, Choi. Income tax: health savings accounts.The Personal Income Tax Law authorizes various deductions in computing income that is subject to tax under that law.This bill, for taxable years beginning on or after January 1, 2020, and before January 1, 2025, would allow a deduction in computing adjusted gross income in connection with health savings accounts in conformity with federal law. In general, the deduction would be an amount equal to the aggregate amount paid in cash during the taxable year by, or on behalf of, an eligible individual, as defined, to a health savings account of that individual, as provided. The bill, for taxable years beginning on or after January 1, 2020, and before January 1, 2025, would also provide related conformity to that federal law with respect to the allowance of rollovers from Archer Medical Savings Accounts, health flexible spending arrangements, or health reimbursement accounts to a health savings account, and penalties in connection therewith.This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
44
55
66
77
88
99 CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION
1010
1111 Assembly Bill
1212
1313 No. 2384
1414
1515 Introduced by Assembly Member Choi(Principal coauthors: Senators Bates, Chang, and Dahle)February 18, 2020
1616
1717 Introduced by Assembly Member Choi(Principal coauthors: Senators Bates, Chang, and Dahle)
1818 February 18, 2020
1919
2020 An act to amend Sections 17072, 17131.4, 17131.5, 17215.1, and 17215.4 of, and to add Section 17217 to, the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
2121
2222 LEGISLATIVE COUNSEL'S DIGEST
2323
2424 ## LEGISLATIVE COUNSEL'S DIGEST
2525
2626 AB 2384, as introduced, Choi. Income tax: health savings accounts.
2727
2828 The Personal Income Tax Law authorizes various deductions in computing income that is subject to tax under that law.This bill, for taxable years beginning on or after January 1, 2020, and before January 1, 2025, would allow a deduction in computing adjusted gross income in connection with health savings accounts in conformity with federal law. In general, the deduction would be an amount equal to the aggregate amount paid in cash during the taxable year by, or on behalf of, an eligible individual, as defined, to a health savings account of that individual, as provided. The bill, for taxable years beginning on or after January 1, 2020, and before January 1, 2025, would also provide related conformity to that federal law with respect to the allowance of rollovers from Archer Medical Savings Accounts, health flexible spending arrangements, or health reimbursement accounts to a health savings account, and penalties in connection therewith.This bill would take effect immediately as a tax levy.
2929
3030 The Personal Income Tax Law authorizes various deductions in computing income that is subject to tax under that law.
3131
3232 This bill, for taxable years beginning on or after January 1, 2020, and before January 1, 2025, would allow a deduction in computing adjusted gross income in connection with health savings accounts in conformity with federal law. In general, the deduction would be an amount equal to the aggregate amount paid in cash during the taxable year by, or on behalf of, an eligible individual, as defined, to a health savings account of that individual, as provided. The bill, for taxable years beginning on or after January 1, 2020, and before January 1, 2025, would also provide related conformity to that federal law with respect to the allowance of rollovers from Archer Medical Savings Accounts, health flexible spending arrangements, or health reimbursement accounts to a health savings account, and penalties in connection therewith.
3333
3434 This bill would take effect immediately as a tax levy.
3535
3636 ## Digest Key
3737
3838 ## Bill Text
3939
4040 The people of the State of California do enact as follows:SECTION 1. Section 17072 of the Revenue and Taxation Code is amended to read:17072. (a) Section 62 of the Internal Revenue Code, relating to adjusted gross income defined, shall apply, except as otherwise provided.(b) Section 62(a)(2)(D) of the Internal Revenue Code, relating to certain expenses of elementary and secondary school teachers, shall not apply.(c) Section 62(a)(21) of the Internal Revenue Code, relating to attorneys fees relating to awards to whistleblowers, shall not apply.(d) For taxable years beginning on or after January 1, 2020, and before January 1, 2025, Section 62(a)(19) of the Internal Revenue Code, relating to health savings accounts, shall apply, as modified by Section 17217.SEC. 2. Section 17131.4 of the Revenue and Taxation Code is amended to read:17131.4. (a) Section 106(d) of the Internal Revenue Code, relating to contributions to health savings accounts, shall not apply.(b) This section shall apply to taxable years beginning on or after January 1, 2005, and before January 1, 2020, and to taxable years beginning on or after January 1, 2025.SEC. 3. Section 17131.5 of the Revenue and Taxation Code is amended to read:17131.5. (a) Section 125(d)(2)(D) of the Internal Revenue Code, relating to the exception for health savings accounts, shall not apply.(b) This section shall apply to taxable years beginning on or after January 1, 2005, and before January 1, 2020, and to taxable years beginning on or after January 1, 2025.SEC. 4. Section 17215.1 of the Revenue and Taxation Code is amended to read:17215.1. (a) Section 220(f)(5) of the Internal Revenue Code, relating to rollover contributions, shall not apply.(b) This section shall apply to taxable years beginning on or after January 1, 2005, and before January 1, 2020, and to taxable years beginning on or after January 1, 2025.SEC. 5. Section 17215.4 of the Revenue and Taxation Code is amended to read:17215.4. (a) Section 223 of the Internal Revenue Code, relating to health savings accounts, shall not apply.(b) This section shall apply to taxable years beginning on or after January 1, 2005, and before January 1, 2020, and to taxable years beginning on or after January 1, 2025.SEC. 6. Section 17217 is added to the Revenue and Taxation Code, to read:17217. For taxable years beginning on or after January 1, 2020, and before January 1, 2025, all of the following shall apply:(a) Section 223 of the Internal Revenue Code, relating to health savings accounts, shall apply, except as otherwise provided.(b) Section 223(e)(1) of the Internal Revenue Code shall be modified by substituting the phrase Section 17651 for the phrase section 511 (relating to imposition on tax of unrelated business income of charitable, etc. organizations) contained therein.(c) Section 223(f)(4)(A) of the Internal Revenue Code shall not apply.SEC. 7. For purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares all of the following with respect to the provisions of this act:(a) The specific goals, purposes, and objectives that this act will achieve are:(1) To provide a tax incentive to motivate California families to open and contribute to a health savings account, for the purpose of saving for future health expenses, thereby encouraging more Californians to pursue a means of preparing for future health-related expenses.(2) To reduce the amount of debt related to health care on a dollar-for-dollar basis, thereby increasing a persons ability to purchase other products that help stimulate economic activity.(3) To bring California into conformity with federal tax law regarding the treatment of health savings accounts.(b) Detailed performance indicators for the Legislature to use in determining whether this act meets the goals, purposes, and objectives listed in subdivision (a) are:(1) The number of deductions allowed by the Franchise Tax Board pursuant to this act with respect to each taxable year for which this act is operative.(2) The total dollar amount of the deductions described in paragraph (1).(c) The Franchise Tax Board shall report the information described in subdivision (b) to the Legislature in every odd-numbered year during which the provisions of the act adding this section are operative.SEC. 8. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
4141
4242 The people of the State of California do enact as follows:
4343
4444 ## The people of the State of California do enact as follows:
4545
4646 SECTION 1. Section 17072 of the Revenue and Taxation Code is amended to read:17072. (a) Section 62 of the Internal Revenue Code, relating to adjusted gross income defined, shall apply, except as otherwise provided.(b) Section 62(a)(2)(D) of the Internal Revenue Code, relating to certain expenses of elementary and secondary school teachers, shall not apply.(c) Section 62(a)(21) of the Internal Revenue Code, relating to attorneys fees relating to awards to whistleblowers, shall not apply.(d) For taxable years beginning on or after January 1, 2020, and before January 1, 2025, Section 62(a)(19) of the Internal Revenue Code, relating to health savings accounts, shall apply, as modified by Section 17217.
4747
4848 SECTION 1. Section 17072 of the Revenue and Taxation Code is amended to read:
4949
5050 ### SECTION 1.
5151
5252 17072. (a) Section 62 of the Internal Revenue Code, relating to adjusted gross income defined, shall apply, except as otherwise provided.(b) Section 62(a)(2)(D) of the Internal Revenue Code, relating to certain expenses of elementary and secondary school teachers, shall not apply.(c) Section 62(a)(21) of the Internal Revenue Code, relating to attorneys fees relating to awards to whistleblowers, shall not apply.(d) For taxable years beginning on or after January 1, 2020, and before January 1, 2025, Section 62(a)(19) of the Internal Revenue Code, relating to health savings accounts, shall apply, as modified by Section 17217.
5353
5454 17072. (a) Section 62 of the Internal Revenue Code, relating to adjusted gross income defined, shall apply, except as otherwise provided.(b) Section 62(a)(2)(D) of the Internal Revenue Code, relating to certain expenses of elementary and secondary school teachers, shall not apply.(c) Section 62(a)(21) of the Internal Revenue Code, relating to attorneys fees relating to awards to whistleblowers, shall not apply.(d) For taxable years beginning on or after January 1, 2020, and before January 1, 2025, Section 62(a)(19) of the Internal Revenue Code, relating to health savings accounts, shall apply, as modified by Section 17217.
5555
5656 17072. (a) Section 62 of the Internal Revenue Code, relating to adjusted gross income defined, shall apply, except as otherwise provided.(b) Section 62(a)(2)(D) of the Internal Revenue Code, relating to certain expenses of elementary and secondary school teachers, shall not apply.(c) Section 62(a)(21) of the Internal Revenue Code, relating to attorneys fees relating to awards to whistleblowers, shall not apply.(d) For taxable years beginning on or after January 1, 2020, and before January 1, 2025, Section 62(a)(19) of the Internal Revenue Code, relating to health savings accounts, shall apply, as modified by Section 17217.
5757
5858
5959
6060 17072. (a) Section 62 of the Internal Revenue Code, relating to adjusted gross income defined, shall apply, except as otherwise provided.
6161
6262 (b) Section 62(a)(2)(D) of the Internal Revenue Code, relating to certain expenses of elementary and secondary school teachers, shall not apply.
6363
6464 (c) Section 62(a)(21) of the Internal Revenue Code, relating to attorneys fees relating to awards to whistleblowers, shall not apply.
6565
6666 (d) For taxable years beginning on or after January 1, 2020, and before January 1, 2025, Section 62(a)(19) of the Internal Revenue Code, relating to health savings accounts, shall apply, as modified by Section 17217.
6767
6868 SEC. 2. Section 17131.4 of the Revenue and Taxation Code is amended to read:17131.4. (a) Section 106(d) of the Internal Revenue Code, relating to contributions to health savings accounts, shall not apply.(b) This section shall apply to taxable years beginning on or after January 1, 2005, and before January 1, 2020, and to taxable years beginning on or after January 1, 2025.
6969
7070 SEC. 2. Section 17131.4 of the Revenue and Taxation Code is amended to read:
7171
7272 ### SEC. 2.
7373
7474 17131.4. (a) Section 106(d) of the Internal Revenue Code, relating to contributions to health savings accounts, shall not apply.(b) This section shall apply to taxable years beginning on or after January 1, 2005, and before January 1, 2020, and to taxable years beginning on or after January 1, 2025.
7575
7676 17131.4. (a) Section 106(d) of the Internal Revenue Code, relating to contributions to health savings accounts, shall not apply.(b) This section shall apply to taxable years beginning on or after January 1, 2005, and before January 1, 2020, and to taxable years beginning on or after January 1, 2025.
7777
7878 17131.4. (a) Section 106(d) of the Internal Revenue Code, relating to contributions to health savings accounts, shall not apply.(b) This section shall apply to taxable years beginning on or after January 1, 2005, and before January 1, 2020, and to taxable years beginning on or after January 1, 2025.
7979
8080
8181
8282 17131.4. (a) Section 106(d) of the Internal Revenue Code, relating to contributions to health savings accounts, shall not apply.
8383
8484 (b) This section shall apply to taxable years beginning on or after January 1, 2005, and before January 1, 2020, and to taxable years beginning on or after January 1, 2025.
8585
8686 SEC. 3. Section 17131.5 of the Revenue and Taxation Code is amended to read:17131.5. (a) Section 125(d)(2)(D) of the Internal Revenue Code, relating to the exception for health savings accounts, shall not apply.(b) This section shall apply to taxable years beginning on or after January 1, 2005, and before January 1, 2020, and to taxable years beginning on or after January 1, 2025.
8787
8888 SEC. 3. Section 17131.5 of the Revenue and Taxation Code is amended to read:
8989
9090 ### SEC. 3.
9191
9292 17131.5. (a) Section 125(d)(2)(D) of the Internal Revenue Code, relating to the exception for health savings accounts, shall not apply.(b) This section shall apply to taxable years beginning on or after January 1, 2005, and before January 1, 2020, and to taxable years beginning on or after January 1, 2025.
9393
9494 17131.5. (a) Section 125(d)(2)(D) of the Internal Revenue Code, relating to the exception for health savings accounts, shall not apply.(b) This section shall apply to taxable years beginning on or after January 1, 2005, and before January 1, 2020, and to taxable years beginning on or after January 1, 2025.
9595
9696 17131.5. (a) Section 125(d)(2)(D) of the Internal Revenue Code, relating to the exception for health savings accounts, shall not apply.(b) This section shall apply to taxable years beginning on or after January 1, 2005, and before January 1, 2020, and to taxable years beginning on or after January 1, 2025.
9797
9898
9999
100100 17131.5. (a) Section 125(d)(2)(D) of the Internal Revenue Code, relating to the exception for health savings accounts, shall not apply.
101101
102102 (b) This section shall apply to taxable years beginning on or after January 1, 2005, and before January 1, 2020, and to taxable years beginning on or after January 1, 2025.
103103
104104 SEC. 4. Section 17215.1 of the Revenue and Taxation Code is amended to read:17215.1. (a) Section 220(f)(5) of the Internal Revenue Code, relating to rollover contributions, shall not apply.(b) This section shall apply to taxable years beginning on or after January 1, 2005, and before January 1, 2020, and to taxable years beginning on or after January 1, 2025.
105105
106106 SEC. 4. Section 17215.1 of the Revenue and Taxation Code is amended to read:
107107
108108 ### SEC. 4.
109109
110110 17215.1. (a) Section 220(f)(5) of the Internal Revenue Code, relating to rollover contributions, shall not apply.(b) This section shall apply to taxable years beginning on or after January 1, 2005, and before January 1, 2020, and to taxable years beginning on or after January 1, 2025.
111111
112112 17215.1. (a) Section 220(f)(5) of the Internal Revenue Code, relating to rollover contributions, shall not apply.(b) This section shall apply to taxable years beginning on or after January 1, 2005, and before January 1, 2020, and to taxable years beginning on or after January 1, 2025.
113113
114114 17215.1. (a) Section 220(f)(5) of the Internal Revenue Code, relating to rollover contributions, shall not apply.(b) This section shall apply to taxable years beginning on or after January 1, 2005, and before January 1, 2020, and to taxable years beginning on or after January 1, 2025.
115115
116116
117117
118118 17215.1. (a) Section 220(f)(5) of the Internal Revenue Code, relating to rollover contributions, shall not apply.
119119
120120 (b) This section shall apply to taxable years beginning on or after January 1, 2005, and before January 1, 2020, and to taxable years beginning on or after January 1, 2025.
121121
122122 SEC. 5. Section 17215.4 of the Revenue and Taxation Code is amended to read:17215.4. (a) Section 223 of the Internal Revenue Code, relating to health savings accounts, shall not apply.(b) This section shall apply to taxable years beginning on or after January 1, 2005, and before January 1, 2020, and to taxable years beginning on or after January 1, 2025.
123123
124124 SEC. 5. Section 17215.4 of the Revenue and Taxation Code is amended to read:
125125
126126 ### SEC. 5.
127127
128128 17215.4. (a) Section 223 of the Internal Revenue Code, relating to health savings accounts, shall not apply.(b) This section shall apply to taxable years beginning on or after January 1, 2005, and before January 1, 2020, and to taxable years beginning on or after January 1, 2025.
129129
130130 17215.4. (a) Section 223 of the Internal Revenue Code, relating to health savings accounts, shall not apply.(b) This section shall apply to taxable years beginning on or after January 1, 2005, and before January 1, 2020, and to taxable years beginning on or after January 1, 2025.
131131
132132 17215.4. (a) Section 223 of the Internal Revenue Code, relating to health savings accounts, shall not apply.(b) This section shall apply to taxable years beginning on or after January 1, 2005, and before January 1, 2020, and to taxable years beginning on or after January 1, 2025.
133133
134134
135135
136136 17215.4. (a) Section 223 of the Internal Revenue Code, relating to health savings accounts, shall not apply.
137137
138138 (b) This section shall apply to taxable years beginning on or after January 1, 2005, and before January 1, 2020, and to taxable years beginning on or after January 1, 2025.
139139
140140 SEC. 6. Section 17217 is added to the Revenue and Taxation Code, to read:17217. For taxable years beginning on or after January 1, 2020, and before January 1, 2025, all of the following shall apply:(a) Section 223 of the Internal Revenue Code, relating to health savings accounts, shall apply, except as otherwise provided.(b) Section 223(e)(1) of the Internal Revenue Code shall be modified by substituting the phrase Section 17651 for the phrase section 511 (relating to imposition on tax of unrelated business income of charitable, etc. organizations) contained therein.(c) Section 223(f)(4)(A) of the Internal Revenue Code shall not apply.
141141
142142 SEC. 6. Section 17217 is added to the Revenue and Taxation Code, to read:
143143
144144 ### SEC. 6.
145145
146146 17217. For taxable years beginning on or after January 1, 2020, and before January 1, 2025, all of the following shall apply:(a) Section 223 of the Internal Revenue Code, relating to health savings accounts, shall apply, except as otherwise provided.(b) Section 223(e)(1) of the Internal Revenue Code shall be modified by substituting the phrase Section 17651 for the phrase section 511 (relating to imposition on tax of unrelated business income of charitable, etc. organizations) contained therein.(c) Section 223(f)(4)(A) of the Internal Revenue Code shall not apply.
147147
148148 17217. For taxable years beginning on or after January 1, 2020, and before January 1, 2025, all of the following shall apply:(a) Section 223 of the Internal Revenue Code, relating to health savings accounts, shall apply, except as otherwise provided.(b) Section 223(e)(1) of the Internal Revenue Code shall be modified by substituting the phrase Section 17651 for the phrase section 511 (relating to imposition on tax of unrelated business income of charitable, etc. organizations) contained therein.(c) Section 223(f)(4)(A) of the Internal Revenue Code shall not apply.
149149
150150 17217. For taxable years beginning on or after January 1, 2020, and before January 1, 2025, all of the following shall apply:(a) Section 223 of the Internal Revenue Code, relating to health savings accounts, shall apply, except as otherwise provided.(b) Section 223(e)(1) of the Internal Revenue Code shall be modified by substituting the phrase Section 17651 for the phrase section 511 (relating to imposition on tax of unrelated business income of charitable, etc. organizations) contained therein.(c) Section 223(f)(4)(A) of the Internal Revenue Code shall not apply.
151151
152152
153153
154154 17217. For taxable years beginning on or after January 1, 2020, and before January 1, 2025, all of the following shall apply:
155155
156156 (a) Section 223 of the Internal Revenue Code, relating to health savings accounts, shall apply, except as otherwise provided.
157157
158158 (b) Section 223(e)(1) of the Internal Revenue Code shall be modified by substituting the phrase Section 17651 for the phrase section 511 (relating to imposition on tax of unrelated business income of charitable, etc. organizations) contained therein.
159159
160160 (c) Section 223(f)(4)(A) of the Internal Revenue Code shall not apply.
161161
162162 SEC. 7. For purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares all of the following with respect to the provisions of this act:(a) The specific goals, purposes, and objectives that this act will achieve are:(1) To provide a tax incentive to motivate California families to open and contribute to a health savings account, for the purpose of saving for future health expenses, thereby encouraging more Californians to pursue a means of preparing for future health-related expenses.(2) To reduce the amount of debt related to health care on a dollar-for-dollar basis, thereby increasing a persons ability to purchase other products that help stimulate economic activity.(3) To bring California into conformity with federal tax law regarding the treatment of health savings accounts.(b) Detailed performance indicators for the Legislature to use in determining whether this act meets the goals, purposes, and objectives listed in subdivision (a) are:(1) The number of deductions allowed by the Franchise Tax Board pursuant to this act with respect to each taxable year for which this act is operative.(2) The total dollar amount of the deductions described in paragraph (1).(c) The Franchise Tax Board shall report the information described in subdivision (b) to the Legislature in every odd-numbered year during which the provisions of the act adding this section are operative.
163163
164164 SEC. 7. For purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares all of the following with respect to the provisions of this act:(a) The specific goals, purposes, and objectives that this act will achieve are:(1) To provide a tax incentive to motivate California families to open and contribute to a health savings account, for the purpose of saving for future health expenses, thereby encouraging more Californians to pursue a means of preparing for future health-related expenses.(2) To reduce the amount of debt related to health care on a dollar-for-dollar basis, thereby increasing a persons ability to purchase other products that help stimulate economic activity.(3) To bring California into conformity with federal tax law regarding the treatment of health savings accounts.(b) Detailed performance indicators for the Legislature to use in determining whether this act meets the goals, purposes, and objectives listed in subdivision (a) are:(1) The number of deductions allowed by the Franchise Tax Board pursuant to this act with respect to each taxable year for which this act is operative.(2) The total dollar amount of the deductions described in paragraph (1).(c) The Franchise Tax Board shall report the information described in subdivision (b) to the Legislature in every odd-numbered year during which the provisions of the act adding this section are operative.
165165
166166 SEC. 7. For purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares all of the following with respect to the provisions of this act:
167167
168168 ### SEC. 7.
169169
170170 (a) The specific goals, purposes, and objectives that this act will achieve are:
171171
172172 (1) To provide a tax incentive to motivate California families to open and contribute to a health savings account, for the purpose of saving for future health expenses, thereby encouraging more Californians to pursue a means of preparing for future health-related expenses.
173173
174174 (2) To reduce the amount of debt related to health care on a dollar-for-dollar basis, thereby increasing a persons ability to purchase other products that help stimulate economic activity.
175175
176176 (3) To bring California into conformity with federal tax law regarding the treatment of health savings accounts.
177177
178178 (b) Detailed performance indicators for the Legislature to use in determining whether this act meets the goals, purposes, and objectives listed in subdivision (a) are:
179179
180180 (1) The number of deductions allowed by the Franchise Tax Board pursuant to this act with respect to each taxable year for which this act is operative.
181181
182182 (2) The total dollar amount of the deductions described in paragraph (1).
183183
184184 (c) The Franchise Tax Board shall report the information described in subdivision (b) to the Legislature in every odd-numbered year during which the provisions of the act adding this section are operative.
185185
186186 SEC. 8. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
187187
188188 SEC. 8. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
189189
190190 SEC. 8. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
191191
192192 ### SEC. 8.