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| 1 | + | CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Senate Bill No. 263Introduced by Senator DoddFebruary 12, 2019 An act to amend Sections 17140.3, 17140.4, 23711, 23711.4, and 24654 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTSB 263, as introduced, Dodd. Taxation: savings plans: qualified ABLE program: small business cash method of accounting. Existing federal law, the Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (ABLE Act), for taxable years beginning on or after January 1, 2014, encourages and assists individuals and families to save private funds for the purpose of supporting persons with disabilities to maintain their health, independence, and quality of life by excluding from gross income distributions used for qualified disability expenses by a beneficiary of a Qualified ABLE Program established and maintained by a state, as specified. Existing federal law, the Tax Cuts and Jobs Act, increases the amount of contributions allowed to an ABLE account, adds special rules for the increased contribution limit, and exempts from taxation distributions from a qualified tuition program, as defined, rolled into an ABLE account.Existing law, the Personal Income Tax Law and the Corporation Tax Law, for taxable years beginning on or after January 1, 2016, conforms to these federal income tax law provisions relating to the ABLE Act, as provided. Existing law creates the ABLE Act Board and requires the board to provide an annual listing of distributions to individuals that have an interest in an ABLE account to the Franchise Tax Board, as provided. This bill, for taxable years beginning on or after January 1, 2020, and before January 1, 2026, would conform to those changes made by the Tax Cuts and Jobs Act.Existing federal law, the Tax Cuts and Jobs Act, allows a small business to use the cash method of accounting if its average annual gross receipts for the 3 taxable years ending with the prior taxable year do not exceed $25,000,000.Existing state law, the Corporation Tax Law, allows a small business to use the cash method of accounting if its average annual gross receipts for the 3 taxable years ending with the prior taxable year do not exceed $5,000,000.This bill, for taxable years beginning on or after January 1, 2020, would conform the Corporation Tax Law to the change made by the Tax Cuts and Jobs Act that increased the allowable amount of annual gross receipts to $25,000,000 for a small business to use the cash method of accounting.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 17140.3 of the Revenue and Taxation Code is amended to read:17140.3. Section 529 of the Internal Revenue Code, relating to qualified state tuition programs, shall apply, except as otherwise provided.(a) Section 529 (a) of the Internal Revenue Code Code, relating to general rule, is modified as follows:(1) By substituting the phrase under this part and Part 11 (commencing with Section 23001) in lieu of the phrase under this subtitle.(2) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(b) A copy of the report required to be filed with the Secretary of the Treasury under Section 529(d) of the Internal Revenue Code Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(c) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529 of the Internal Revenue Code, relating to qualified tuition programs, made by Section 11025 of Public Law 115-97, relating to rollovers to ABLE programs from 529 programs, shall apply.SEC. 2. Section 17140.4 of the Revenue and Taxation Code is amended to read:17140.4. (a) For taxable years beginning on or after January 1, 2016, Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, added by Section 102 of Division B of Public Law 113-295, shall apply, except as otherwise provided.(a)(1) Section 529A(a) of the Internal Revenue Code Code, relating to general rules, is modified as follows:(1)(A) By substituting the phrase under this part and Part 11 (commencing with Section 23001) in lieu of the phrase under this subtitle.(2)(B) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(b)(2) Section 529A(c)(3)(A) of the Internal Revenue Code is modified by substituting 2.5 percent in lieu of 10 percent.(c)(3) A copy of the report required to be filed with the Secretary of the Treasury under Section 529A(d) of the Internal Revenue Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(b) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, made by Section 11024 of Public Law 115-97, relating to increased contributions to ABLE accounts, shall apply.SEC. 3. Section 23711 of the Revenue and Taxation Code is amended to read:23711. Section 529 of the Internal Revenue Code, relating to qualified state tuition programs, shall apply, except as otherwise provided.(a) Section 529(a) of the Internal Revenue Code Code, relating to general rule, is modified as follows:(1) By substituting the phrase under Part 10 (commencing with Section 17001) and this part in lieu of the phrase under this subtitle.(2) By substituting Article 2 (commencing with Section 23731) in lieu of section 511.(b) A copy of the report required to be filed with the Secretary of the Treasury under Section 529(d) of the Internal Revenue Code Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(c) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529 of the Internal Revenue Code, relating to qualified tuition programs, made by Section 11025 of Public Law 115-97, relating to rollovers to ABLE programs from 529 programs, shall apply.SEC. 4. Section 23711.4 of the Revenue and Taxation Code is amended to read:23711.4. (a) For taxable years beginning on or after January 1, 2016, Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, added by Section 102 of Division B of Public Law 113-295, shall apply, except as otherwise provided.(a)(1) Section 529A(a) of the Internal Revenue Code Code, relating to general rules, is modified as follows:(1)(A) By substituting the phrase under Part 10 (commencing with Section 17001) and this part in lieu of the phrase under this subtitle.(2)(B) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(b)(2) Section 529A(c)(3)(A) of the Internal Revenue Code is modified by substituting 2.5 percent in lieu of 10 percent.(c)(3) A copy of the report required to be filed with the Secretary of the Treasury under Section 529A(d) of the Internal revenue Code, relating to reports reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(b) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, made by Section 11024 of Public Law 115-97, relating to increased contributions to ABLE accounts, shall apply.SEC. 5. Section 24654 of the Revenue and Taxation Code is amended to read:24654. (a) Section 448 of the Internal Revenue Code, relating to limitation on use of cash method of accounting, shall apply, except as otherwise provided.(b) For purposes of applying Section 448 of the Internal Revenue Code, relating to limitation on use of cash method of accounting, Sections 801(d)(2), 801(d)(3), and 801(d)(5) of the Tax Reform Act of 1986 (Public Law 99-514), as modified by Section 1008(a) of Public Law 100-647, shall apply to each taxable year beginning on or after January 1, 1987.(c) (1) For taxable years beginning on or after January 1, 2020, the amendments to Section 448 of the Internal Revenue Code, relating to limitation on use of cash method of accounting, made by Section 13102 of Public Law 115-97, relating to small business accounting method reform and simplification, shall apply, except as otherwise provided.(2) Section 448(c)(4) of the Internal Revenue Code, relating to adjustment for inflation, is modified by substituting the phrase beginning on or after January 1, 2020 in lieu of the phrase beginning after December 31, 2018.(3) Section 448(c)(4)(B) of the Internal Revenue Code is modified by substituting the phrase calendar year 2018 in lieu of the phrase calendar year 2017.(4) Section 448(d)(7), relating to coordination with section 481, is modified by substituting Franchise Tax Board in lieu of Secretary.SEC. 6. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 2 | 2 | ||
| 3 | - | ||
| 3 | + | CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Senate Bill No. 263Introduced by Senator DoddFebruary 12, 2019 An act to amend Sections 17140.3, 17140.4, 23711, 23711.4, and 24654 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTSB 263, as introduced, Dodd. Taxation: savings plans: qualified ABLE program: small business cash method of accounting. Existing federal law, the Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (ABLE Act), for taxable years beginning on or after January 1, 2014, encourages and assists individuals and families to save private funds for the purpose of supporting persons with disabilities to maintain their health, independence, and quality of life by excluding from gross income distributions used for qualified disability expenses by a beneficiary of a Qualified ABLE Program established and maintained by a state, as specified. Existing federal law, the Tax Cuts and Jobs Act, increases the amount of contributions allowed to an ABLE account, adds special rules for the increased contribution limit, and exempts from taxation distributions from a qualified tuition program, as defined, rolled into an ABLE account.Existing law, the Personal Income Tax Law and the Corporation Tax Law, for taxable years beginning on or after January 1, 2016, conforms to these federal income tax law provisions relating to the ABLE Act, as provided. Existing law creates the ABLE Act Board and requires the board to provide an annual listing of distributions to individuals that have an interest in an ABLE account to the Franchise Tax Board, as provided. This bill, for taxable years beginning on or after January 1, 2020, and before January 1, 2026, would conform to those changes made by the Tax Cuts and Jobs Act.Existing federal law, the Tax Cuts and Jobs Act, allows a small business to use the cash method of accounting if its average annual gross receipts for the 3 taxable years ending with the prior taxable year do not exceed $25,000,000.Existing state law, the Corporation Tax Law, allows a small business to use the cash method of accounting if its average annual gross receipts for the 3 taxable years ending with the prior taxable year do not exceed $5,000,000.This bill, for taxable years beginning on or after January 1, 2020, would conform the Corporation Tax Law to the change made by the Tax Cuts and Jobs Act that increased the allowable amount of annual gross receipts to $25,000,000 for a small business to use the cash method of accounting.This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO | |
| 4 | 4 | ||
| 5 | - | Amended IN Senate April 22, 2019 | |
| 6 | 5 | ||
| 7 | - | Amended IN Senate April 22, 2019 | |
| 6 | + | ||
| 7 | + | ||
| 8 | 8 | ||
| 9 | 9 | CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION | |
| 10 | 10 | ||
| 11 | 11 | Senate Bill No. 263 | |
| 12 | 12 | ||
| 13 | 13 | Introduced by Senator DoddFebruary 12, 2019 | |
| 14 | 14 | ||
| 15 | 15 | Introduced by Senator Dodd | |
| 16 | 16 | February 12, 2019 | |
| 17 | 17 | ||
| 18 | - | An act to amend Sections 17140.3, 17140.4, 23711, 23711.4, and 24654 of | |
| 18 | + | An act to amend Sections 17140.3, 17140.4, 23711, 23711.4, and 24654 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. | |
| 19 | 19 | ||
| 20 | 20 | LEGISLATIVE COUNSEL'S DIGEST | |
| 21 | 21 | ||
| 22 | 22 | ## LEGISLATIVE COUNSEL'S DIGEST | |
| 23 | 23 | ||
| 24 | - | SB 263, as | |
| 24 | + | SB 263, as introduced, Dodd. Taxation: savings plans: qualified ABLE program: small business cash method of accounting. | |
| 25 | 25 | ||
| 26 | - | Existing federal law, the Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (ABLE Act), for taxable years beginning on or after January 1, 2014, encourages and assists individuals and families to save private funds for the purpose of supporting persons with disabilities to maintain their health, independence, and quality of life by excluding from gross income distributions used for qualified disability expenses by a beneficiary of a Qualified ABLE Program established and maintained by a state, as specified. Existing federal law, the Tax Cuts and Jobs Act, increases the amount of contributions allowed to an ABLE account, adds special rules for the increased contribution limit, and exempts from taxation distributions from a qualified tuition program, as defined, rolled into an ABLE account. | |
| 26 | + | Existing federal law, the Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (ABLE Act), for taxable years beginning on or after January 1, 2014, encourages and assists individuals and families to save private funds for the purpose of supporting persons with disabilities to maintain their health, independence, and quality of life by excluding from gross income distributions used for qualified disability expenses by a beneficiary of a Qualified ABLE Program established and maintained by a state, as specified. Existing federal law, the Tax Cuts and Jobs Act, increases the amount of contributions allowed to an ABLE account, adds special rules for the increased contribution limit, and exempts from taxation distributions from a qualified tuition program, as defined, rolled into an ABLE account.Existing law, the Personal Income Tax Law and the Corporation Tax Law, for taxable years beginning on or after January 1, 2016, conforms to these federal income tax law provisions relating to the ABLE Act, as provided. Existing law creates the ABLE Act Board and requires the board to provide an annual listing of distributions to individuals that have an interest in an ABLE account to the Franchise Tax Board, as provided. This bill, for taxable years beginning on or after January 1, 2020, and before January 1, 2026, would conform to those changes made by the Tax Cuts and Jobs Act.Existing federal law, the Tax Cuts and Jobs Act, allows a small business to use the cash method of accounting if its average annual gross receipts for the 3 taxable years ending with the prior taxable year do not exceed $25,000,000.Existing state law, the Corporation Tax Law, allows a small business to use the cash method of accounting if its average annual gross receipts for the 3 taxable years ending with the prior taxable year do not exceed $5,000,000.This bill, for taxable years beginning on or after January 1, 2020, would conform the Corporation Tax Law to the change made by the Tax Cuts and Jobs Act that increased the allowable amount of annual gross receipts to $25,000,000 for a small business to use the cash method of accounting.This bill would take effect immediately as a tax levy. | |
| 27 | 27 | ||
| 28 | - | Existing federal law, the Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (ABLE Act), for taxable years beginning on or after January 1, 2014, encourages and assists individuals and families to save private funds for the purpose of supporting persons with disabilities to maintain their health, independence, and quality of life by excluding from gross income distributions used for qualified disability expenses by a beneficiary of a Qualified ABLE Program established and maintained by a state, as specified. Existing federal law, the Tax Cuts and Jobs Act, increases the amount of contributions allowed to an ABLE account, adds special rules for the increased contribution limit, and exempts from taxation distributions from a qualified tuition program, as defined, rolled into an ABLE account. | |
| 28 | + | Existing federal law, the Stephen Beck, Jr., Achieving a Better Life Experience Act of 2014 (ABLE Act), for taxable years beginning on or after January 1, 2014, encourages and assists individuals and families to save private funds for the purpose of supporting persons with disabilities to maintain their health, independence, and quality of life by excluding from gross income distributions used for qualified disability expenses by a beneficiary of a Qualified ABLE Program established and maintained by a state, as specified. Existing federal law, the Tax Cuts and Jobs Act, increases the amount of contributions allowed to an ABLE account, adds special rules for the increased contribution limit, and exempts from taxation distributions from a qualified tuition program, as defined, rolled into an ABLE account. | |
| 29 | 29 | ||
| 30 | 30 | Existing law, the Personal Income Tax Law and the Corporation Tax Law, for taxable years beginning on or after January 1, 2016, conforms to these federal income tax law provisions relating to the ABLE Act, as provided. Existing law creates the ABLE Act Board and requires the board to provide an annual listing of distributions to individuals that have an interest in an ABLE account to the Franchise Tax Board, as provided. | |
| 31 | 31 | ||
| 32 | - | This bill, for taxable years beginning on or after January 1, 2020, and before January 1, 2026, would conform to those changes made by the Tax Cuts and Jobs Act. | |
| 32 | + | This bill, for taxable years beginning on or after January 1, 2020, and before January 1, 2026, would conform to those changes made by the Tax Cuts and Jobs Act. | |
| 33 | 33 | ||
| 34 | 34 | Existing federal law, the Tax Cuts and Jobs Act, allows a small business to use the cash method of accounting if its average annual gross receipts for the 3 taxable years ending with the prior taxable year do not exceed $25,000,000. | |
| 35 | 35 | ||
| 36 | 36 | Existing state law, the Corporation Tax Law, allows a small business to use the cash method of accounting if its average annual gross receipts for the 3 taxable years ending with the prior taxable year do not exceed $5,000,000. | |
| 37 | 37 | ||
| 38 | 38 | This bill, for taxable years beginning on or after January 1, 2020, would conform the Corporation Tax Law to the change made by the Tax Cuts and Jobs Act that increased the allowable amount of annual gross receipts to $25,000,000 for a small business to use the cash method of accounting. | |
| 39 | 39 | ||
| 40 | 40 | This bill would take effect immediately as a tax levy. | |
| 41 | 41 | ||
| 42 | 42 | ## Digest Key | |
| 43 | 43 | ||
| 44 | 44 | ## Bill Text | |
| 45 | 45 | ||
| 46 | - | The people of the State of California do enact as follows:SECTION 1. Section | |
| 46 | + | The people of the State of California do enact as follows:SECTION 1. Section 17140.3 of the Revenue and Taxation Code is amended to read:17140.3. Section 529 of the Internal Revenue Code, relating to qualified state tuition programs, shall apply, except as otherwise provided.(a) Section 529 (a) of the Internal Revenue Code Code, relating to general rule, is modified as follows:(1) By substituting the phrase under this part and Part 11 (commencing with Section 23001) in lieu of the phrase under this subtitle.(2) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(b) A copy of the report required to be filed with the Secretary of the Treasury under Section 529(d) of the Internal Revenue Code Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(c) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529 of the Internal Revenue Code, relating to qualified tuition programs, made by Section 11025 of Public Law 115-97, relating to rollovers to ABLE programs from 529 programs, shall apply.SEC. 2. Section 17140.4 of the Revenue and Taxation Code is amended to read:17140.4. (a) For taxable years beginning on or after January 1, 2016, Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, added by Section 102 of Division B of Public Law 113-295, shall apply, except as otherwise provided.(a)(1) Section 529A(a) of the Internal Revenue Code Code, relating to general rules, is modified as follows:(1)(A) By substituting the phrase under this part and Part 11 (commencing with Section 23001) in lieu of the phrase under this subtitle.(2)(B) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(b)(2) Section 529A(c)(3)(A) of the Internal Revenue Code is modified by substituting 2.5 percent in lieu of 10 percent.(c)(3) A copy of the report required to be filed with the Secretary of the Treasury under Section 529A(d) of the Internal Revenue Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(b) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, made by Section 11024 of Public Law 115-97, relating to increased contributions to ABLE accounts, shall apply.SEC. 3. Section 23711 of the Revenue and Taxation Code is amended to read:23711. Section 529 of the Internal Revenue Code, relating to qualified state tuition programs, shall apply, except as otherwise provided.(a) Section 529(a) of the Internal Revenue Code Code, relating to general rule, is modified as follows:(1) By substituting the phrase under Part 10 (commencing with Section 17001) and this part in lieu of the phrase under this subtitle.(2) By substituting Article 2 (commencing with Section 23731) in lieu of section 511.(b) A copy of the report required to be filed with the Secretary of the Treasury under Section 529(d) of the Internal Revenue Code Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(c) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529 of the Internal Revenue Code, relating to qualified tuition programs, made by Section 11025 of Public Law 115-97, relating to rollovers to ABLE programs from 529 programs, shall apply.SEC. 4. Section 23711.4 of the Revenue and Taxation Code is amended to read:23711.4. (a) For taxable years beginning on or after January 1, 2016, Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, added by Section 102 of Division B of Public Law 113-295, shall apply, except as otherwise provided.(a)(1) Section 529A(a) of the Internal Revenue Code Code, relating to general rules, is modified as follows:(1)(A) By substituting the phrase under Part 10 (commencing with Section 17001) and this part in lieu of the phrase under this subtitle.(2)(B) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(b)(2) Section 529A(c)(3)(A) of the Internal Revenue Code is modified by substituting 2.5 percent in lieu of 10 percent.(c)(3) A copy of the report required to be filed with the Secretary of the Treasury under Section 529A(d) of the Internal revenue Code, relating to reports reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(b) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, made by Section 11024 of Public Law 115-97, relating to increased contributions to ABLE accounts, shall apply.SEC. 5. Section 24654 of the Revenue and Taxation Code is amended to read:24654. (a) Section 448 of the Internal Revenue Code, relating to limitation on use of cash method of accounting, shall apply, except as otherwise provided.(b) For purposes of applying Section 448 of the Internal Revenue Code, relating to limitation on use of cash method of accounting, Sections 801(d)(2), 801(d)(3), and 801(d)(5) of the Tax Reform Act of 1986 (Public Law 99-514), as modified by Section 1008(a) of Public Law 100-647, shall apply to each taxable year beginning on or after January 1, 1987.(c) (1) For taxable years beginning on or after January 1, 2020, the amendments to Section 448 of the Internal Revenue Code, relating to limitation on use of cash method of accounting, made by Section 13102 of Public Law 115-97, relating to small business accounting method reform and simplification, shall apply, except as otherwise provided.(2) Section 448(c)(4) of the Internal Revenue Code, relating to adjustment for inflation, is modified by substituting the phrase beginning on or after January 1, 2020 in lieu of the phrase beginning after December 31, 2018.(3) Section 448(c)(4)(B) of the Internal Revenue Code is modified by substituting the phrase calendar year 2018 in lieu of the phrase calendar year 2017.(4) Section 448(d)(7), relating to coordination with section 481, is modified by substituting Franchise Tax Board in lieu of Secretary.SEC. 6. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 47 | 47 | ||
| 48 | 48 | The people of the State of California do enact as follows: | |
| 49 | 49 | ||
| 50 | 50 | ## The people of the State of California do enact as follows: | |
| 51 | 51 | ||
| 52 | - | SECTION 1. Section | |
| 52 | + | SECTION 1. Section 17140.3 of the Revenue and Taxation Code is amended to read:17140.3. Section 529 of the Internal Revenue Code, relating to qualified state tuition programs, shall apply, except as otherwise provided.(a) Section 529 (a) of the Internal Revenue Code Code, relating to general rule, is modified as follows:(1) By substituting the phrase under this part and Part 11 (commencing with Section 23001) in lieu of the phrase under this subtitle.(2) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(b) A copy of the report required to be filed with the Secretary of the Treasury under Section 529(d) of the Internal Revenue Code Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(c) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529 of the Internal Revenue Code, relating to qualified tuition programs, made by Section 11025 of Public Law 115-97, relating to rollovers to ABLE programs from 529 programs, shall apply. | |
| 53 | 53 | ||
| 54 | - | SECTION 1. Section | |
| 54 | + | SECTION 1. Section 17140.3 of the Revenue and Taxation Code is amended to read: | |
| 55 | 55 | ||
| 56 | 56 | ### SECTION 1. | |
| 57 | 57 | ||
| 58 | - | ||
| 58 | + | 17140.3. Section 529 of the Internal Revenue Code, relating to qualified state tuition programs, shall apply, except as otherwise provided.(a) Section 529 (a) of the Internal Revenue Code Code, relating to general rule, is modified as follows:(1) By substituting the phrase under this part and Part 11 (commencing with Section 23001) in lieu of the phrase under this subtitle.(2) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(b) A copy of the report required to be filed with the Secretary of the Treasury under Section 529(d) of the Internal Revenue Code Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(c) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529 of the Internal Revenue Code, relating to qualified tuition programs, made by Section 11025 of Public Law 115-97, relating to rollovers to ABLE programs from 529 programs, shall apply. | |
| 59 | 59 | ||
| 60 | - | ||
| 60 | + | 17140.3. Section 529 of the Internal Revenue Code, relating to qualified state tuition programs, shall apply, except as otherwise provided.(a) Section 529 (a) of the Internal Revenue Code Code, relating to general rule, is modified as follows:(1) By substituting the phrase under this part and Part 11 (commencing with Section 23001) in lieu of the phrase under this subtitle.(2) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(b) A copy of the report required to be filed with the Secretary of the Treasury under Section 529(d) of the Internal Revenue Code Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(c) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529 of the Internal Revenue Code, relating to qualified tuition programs, made by Section 11025 of Public Law 115-97, relating to rollovers to ABLE programs from 529 programs, shall apply. | |
| 61 | 61 | ||
| 62 | - | ||
| 62 | + | 17140.3. Section 529 of the Internal Revenue Code, relating to qualified state tuition programs, shall apply, except as otherwise provided.(a) Section 529 (a) of the Internal Revenue Code Code, relating to general rule, is modified as follows:(1) By substituting the phrase under this part and Part 11 (commencing with Section 23001) in lieu of the phrase under this subtitle.(2) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(b) A copy of the report required to be filed with the Secretary of the Treasury under Section 529(d) of the Internal Revenue Code Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(c) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529 of the Internal Revenue Code, relating to qualified tuition programs, made by Section 11025 of Public Law 115-97, relating to rollovers to ABLE programs from 529 programs, shall apply. | |
| 63 | 63 | ||
| 64 | 64 | ||
| 65 | 65 | ||
| 66 | - | ||
| 66 | + | 17140.3. Section 529 of the Internal Revenue Code, relating to qualified state tuition programs, shall apply, except as otherwise provided. | |
| 67 | 67 | ||
| 68 | - | (1) Section 25B(b)(3), relating to inflation adjustment, is modified by substituting 2021 in lieu of 2006. | |
| 69 | - | ||
| 70 | - | (2) Section 25B(b)(3)(B) is modified by substituting calendar year 2020 for calendar year 2005. | |
| 71 | - | ||
| 72 | - | (3) Section 25B(d), relating to qualified retirement savings contributions, shall not apply and instead qualified savings contributions means the amount of contributions made before January 1, 2026, by an individual to the ABLE account, within the meaning of Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, as amended by Section 11024(a)(1) of the Tax Cuts and Jobs Act (Public Law 11597), of which the individual is the designated beneficiary. | |
| 73 | - | ||
| 74 | - | (b) This section shall remain in effect only until December 1, 2026, and as of that date is repealed. | |
| 75 | - | ||
| 76 | - | SECTION 1.SEC. 2. Section 17140.3 of the Revenue and Taxation Code is amended to read:17140.3. Section 529 of the Internal Revenue Code, relating to qualified tuition programs, shall apply, except as otherwise provided.(a) Section 529 (a) of the Internal Revenue Code, relating to general rule, is modified as follows:(1) By substituting the phrase under this part and Part 11 (commencing with Section 23001) in lieu of the phrase under this subtitle.(2) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(b) A copy of the report required to be filed with the Secretary of the Treasury under Section 529(d) of the Internal Revenue Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(c) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529 of the Internal Revenue Code, relating to qualified tuition programs, made by Section 11025 of Public Law 115-97, relating to rollovers to ABLE programs from 529 programs, shall apply. | |
| 77 | - | ||
| 78 | - | SECTION 1.SEC. 2. Section 17140.3 of the Revenue and Taxation Code is amended to read: | |
| 79 | - | ||
| 80 | - | ### SECTION 1.SEC. 2. | |
| 81 | - | ||
| 82 | - | 17140.3. Section 529 of the Internal Revenue Code, relating to qualified tuition programs, shall apply, except as otherwise provided.(a) Section 529 (a) of the Internal Revenue Code, relating to general rule, is modified as follows:(1) By substituting the phrase under this part and Part 11 (commencing with Section 23001) in lieu of the phrase under this subtitle.(2) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(b) A copy of the report required to be filed with the Secretary of the Treasury under Section 529(d) of the Internal Revenue Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(c) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529 of the Internal Revenue Code, relating to qualified tuition programs, made by Section 11025 of Public Law 115-97, relating to rollovers to ABLE programs from 529 programs, shall apply. | |
| 83 | - | ||
| 84 | - | 17140.3. Section 529 of the Internal Revenue Code, relating to qualified tuition programs, shall apply, except as otherwise provided.(a) Section 529 (a) of the Internal Revenue Code, relating to general rule, is modified as follows:(1) By substituting the phrase under this part and Part 11 (commencing with Section 23001) in lieu of the phrase under this subtitle.(2) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(b) A copy of the report required to be filed with the Secretary of the Treasury under Section 529(d) of the Internal Revenue Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(c) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529 of the Internal Revenue Code, relating to qualified tuition programs, made by Section 11025 of Public Law 115-97, relating to rollovers to ABLE programs from 529 programs, shall apply. | |
| 85 | - | ||
| 86 | - | 17140.3. Section 529 of the Internal Revenue Code, relating to qualified tuition programs, shall apply, except as otherwise provided.(a) Section 529 (a) of the Internal Revenue Code, relating to general rule, is modified as follows:(1) By substituting the phrase under this part and Part 11 (commencing with Section 23001) in lieu of the phrase under this subtitle.(2) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(b) A copy of the report required to be filed with the Secretary of the Treasury under Section 529(d) of the Internal Revenue Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(c) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529 of the Internal Revenue Code, relating to qualified tuition programs, made by Section 11025 of Public Law 115-97, relating to rollovers to ABLE programs from 529 programs, shall apply. | |
| 87 | - | ||
| 88 | - | ||
| 89 | - | ||
| 90 | - | 17140.3. Section 529 of the Internal Revenue Code, relating to qualified tuition programs, shall apply, except as otherwise provided. | |
| 91 | - | ||
| 92 | - | (a) Section 529 (a) of the Internal Revenue Code, relating to general rule, is modified as follows: | |
| 68 | + | (a) Section 529 (a) of the Internal Revenue Code Code, relating to general rule, is modified as follows: | |
| 93 | 69 | ||
| 94 | 70 | (1) By substituting the phrase under this part and Part 11 (commencing with Section 23001) in lieu of the phrase under this subtitle. | |
| 95 | 71 | ||
| 96 | 72 | (2) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511. | |
| 97 | 73 | ||
| 98 | - | (b) A copy of the report required to be filed with the Secretary of the Treasury under Section 529(d) of the Internal Revenue Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section. | |
| 74 | + | (b) A copy of the report required to be filed with the Secretary of the Treasury under Section 529(d) of the Internal Revenue Code Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section. | |
| 99 | 75 | ||
| 100 | 76 | (c) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529 of the Internal Revenue Code, relating to qualified tuition programs, made by Section 11025 of Public Law 115-97, relating to rollovers to ABLE programs from 529 programs, shall apply. | |
| 101 | 77 | ||
| 102 | - | SEC. 2 | |
| 78 | + | SEC. 2. Section 17140.4 of the Revenue and Taxation Code is amended to read:17140.4. (a) For taxable years beginning on or after January 1, 2016, Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, added by Section 102 of Division B of Public Law 113-295, shall apply, except as otherwise provided.(a)(1) Section 529A(a) of the Internal Revenue Code Code, relating to general rules, is modified as follows:(1)(A) By substituting the phrase under this part and Part 11 (commencing with Section 23001) in lieu of the phrase under this subtitle.(2)(B) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(b)(2) Section 529A(c)(3)(A) of the Internal Revenue Code is modified by substituting 2.5 percent in lieu of 10 percent.(c)(3) A copy of the report required to be filed with the Secretary of the Treasury under Section 529A(d) of the Internal Revenue Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(b) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, made by Section 11024 of Public Law 115-97, relating to increased contributions to ABLE accounts, shall apply. | |
| 103 | 79 | ||
| 104 | - | SEC. 2 | |
| 80 | + | SEC. 2. Section 17140.4 of the Revenue and Taxation Code is amended to read: | |
| 105 | 81 | ||
| 106 | - | ### SEC. 2. | |
| 82 | + | ### SEC. 2. | |
| 107 | 83 | ||
| 108 | - | 17140.4. (a) For taxable years beginning on or after January 1, 2016, Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, added by Section 102 of Division B of Public Law 113-295, shall apply, except as otherwise provided.(1) Section 529A(a) of the Internal Revenue Code, relating to general rules, is modified as follows:(A) By substituting the phrase under this part and Part 11 (commencing with Section 23001) in lieu of the phrase under this subtitle.(B) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(2) Section 529A(c)(3)(A) of the Internal Revenue Code is modified by substituting 2.5 percent in lieu of 10 percent.(3) A copy of the report required to be filed with the Secretary of the Treasury under Section 529A(d) of the Internal Revenue Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(b) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, made by Section 11024 of Public Law 115-97, relating to increased contributions to ABLE accounts, shall apply. | |
| 84 | + | 17140.4. (a) For taxable years beginning on or after January 1, 2016, Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, added by Section 102 of Division B of Public Law 113-295, shall apply, except as otherwise provided.(a)(1) Section 529A(a) of the Internal Revenue Code Code, relating to general rules, is modified as follows:(1)(A) By substituting the phrase under this part and Part 11 (commencing with Section 23001) in lieu of the phrase under this subtitle.(2)(B) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(b)(2) Section 529A(c)(3)(A) of the Internal Revenue Code is modified by substituting 2.5 percent in lieu of 10 percent.(c)(3) A copy of the report required to be filed with the Secretary of the Treasury under Section 529A(d) of the Internal Revenue Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(b) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, made by Section 11024 of Public Law 115-97, relating to increased contributions to ABLE accounts, shall apply. | |
| 109 | 85 | ||
| 110 | - | 17140.4. (a) For taxable years beginning on or after January 1, 2016, Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, added by Section 102 of Division B of Public Law 113-295, shall apply, except as otherwise provided.(1) Section 529A(a) of the Internal Revenue Code, relating to general rules, is modified as follows:(A) By substituting the phrase under this part and Part 11 (commencing with Section 23001) in lieu of the phrase under this subtitle.(B) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(2) Section 529A(c)(3)(A) of the Internal Revenue Code is modified by substituting 2.5 percent in lieu of 10 percent.(3) A copy of the report required to be filed with the Secretary of the Treasury under Section 529A(d) of the Internal Revenue Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(b) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, made by Section 11024 of Public Law 115-97, relating to increased contributions to ABLE accounts, shall apply. | |
| 86 | + | 17140.4. (a) For taxable years beginning on or after January 1, 2016, Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, added by Section 102 of Division B of Public Law 113-295, shall apply, except as otherwise provided.(a)(1) Section 529A(a) of the Internal Revenue Code Code, relating to general rules, is modified as follows:(1)(A) By substituting the phrase under this part and Part 11 (commencing with Section 23001) in lieu of the phrase under this subtitle.(2)(B) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(b)(2) Section 529A(c)(3)(A) of the Internal Revenue Code is modified by substituting 2.5 percent in lieu of 10 percent.(c)(3) A copy of the report required to be filed with the Secretary of the Treasury under Section 529A(d) of the Internal Revenue Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(b) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, made by Section 11024 of Public Law 115-97, relating to increased contributions to ABLE accounts, shall apply. | |
| 111 | 87 | ||
| 112 | - | 17140.4. (a) For taxable years beginning on or after January 1, 2016, Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, added by Section 102 of Division B of Public Law 113-295, shall apply, except as otherwise provided.(1) Section 529A(a) of the Internal Revenue Code, relating to general rules, is modified as follows:(A) By substituting the phrase under this part and Part 11 (commencing with Section 23001) in lieu of the phrase under this subtitle.(B) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(2) Section 529A(c)(3)(A) of the Internal Revenue Code is modified by substituting 2.5 percent in lieu of 10 percent.(3) A copy of the report required to be filed with the Secretary of the Treasury under Section 529A(d) of the Internal Revenue Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(b) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, made by Section 11024 of Public Law 115-97, relating to increased contributions to ABLE accounts, shall apply. | |
| 88 | + | 17140.4. (a) For taxable years beginning on or after January 1, 2016, Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, added by Section 102 of Division B of Public Law 113-295, shall apply, except as otherwise provided.(a)(1) Section 529A(a) of the Internal Revenue Code Code, relating to general rules, is modified as follows:(1)(A) By substituting the phrase under this part and Part 11 (commencing with Section 23001) in lieu of the phrase under this subtitle.(2)(B) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(b)(2) Section 529A(c)(3)(A) of the Internal Revenue Code is modified by substituting 2.5 percent in lieu of 10 percent.(c)(3) A copy of the report required to be filed with the Secretary of the Treasury under Section 529A(d) of the Internal Revenue Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(b) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, made by Section 11024 of Public Law 115-97, relating to increased contributions to ABLE accounts, shall apply. | |
| 113 | 89 | ||
| 114 | 90 | ||
| 115 | 91 | ||
| 116 | 92 | 17140.4. (a) For taxable years beginning on or after January 1, 2016, Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, added by Section 102 of Division B of Public Law 113-295, shall apply, except as otherwise provided. | |
| 117 | 93 | ||
| 118 | - | (1) Section 529A(a) of the Internal Revenue Code, relating to general rules, is modified as follows: | |
| 94 | + | (a) | |
| 95 | + | ||
| 96 | + | ||
| 97 | + | ||
| 98 | + | (1) Section 529A(a) of the Internal Revenue Code Code, relating to general rules, is modified as follows: | |
| 99 | + | ||
| 100 | + | (1) | |
| 101 | + | ||
| 102 | + | ||
| 119 | 103 | ||
| 120 | 104 | (A) By substituting the phrase under this part and Part 11 (commencing with Section 23001) in lieu of the phrase under this subtitle. | |
| 121 | 105 | ||
| 106 | + | (2) | |
| 107 | + | ||
| 108 | + | ||
| 109 | + | ||
| 122 | 110 | (B) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511. | |
| 123 | 111 | ||
| 112 | + | (b) | |
| 113 | + | ||
| 114 | + | ||
| 115 | + | ||
| 124 | 116 | (2) Section 529A(c)(3)(A) of the Internal Revenue Code is modified by substituting 2.5 percent in lieu of 10 percent. | |
| 117 | + | ||
| 118 | + | (c) | |
| 119 | + | ||
| 120 | + | ||
| 125 | 121 | ||
| 126 | 122 | (3) A copy of the report required to be filed with the Secretary of the Treasury under Section 529A(d) of the Internal Revenue Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section. | |
| 127 | 123 | ||
| 128 | 124 | (b) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, made by Section 11024 of Public Law 115-97, relating to increased contributions to ABLE accounts, shall apply. | |
| 129 | 125 | ||
| 130 | - | SEC. 3 | |
| 126 | + | SEC. 3. Section 23711 of the Revenue and Taxation Code is amended to read:23711. Section 529 of the Internal Revenue Code, relating to qualified state tuition programs, shall apply, except as otherwise provided.(a) Section 529(a) of the Internal Revenue Code Code, relating to general rule, is modified as follows:(1) By substituting the phrase under Part 10 (commencing with Section 17001) and this part in lieu of the phrase under this subtitle.(2) By substituting Article 2 (commencing with Section 23731) in lieu of section 511.(b) A copy of the report required to be filed with the Secretary of the Treasury under Section 529(d) of the Internal Revenue Code Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(c) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529 of the Internal Revenue Code, relating to qualified tuition programs, made by Section 11025 of Public Law 115-97, relating to rollovers to ABLE programs from 529 programs, shall apply. | |
| 131 | 127 | ||
| 132 | - | SEC. 3 | |
| 128 | + | SEC. 3. Section 23711 of the Revenue and Taxation Code is amended to read: | |
| 133 | 129 | ||
| 134 | - | ### SEC. 3. | |
| 130 | + | ### SEC. 3. | |
| 135 | 131 | ||
| 136 | - | 23711. Section 529 of the Internal Revenue Code, relating to qualified state tuition programs, shall apply, except as otherwise provided.(a) Section 529(a) of the Internal Revenue Code, relating to general rule, is modified as follows:(1) By substituting the phrase under Part 10 (commencing with Section 17001) and this part in lieu of the phrase under this subtitle.(2) By substituting Article 2 (commencing with Section 23731) in lieu of section 511.(b) A copy of the report required to be filed with the Secretary of the Treasury under Section 529(d) of the Internal Revenue Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(c) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529 of the Internal Revenue Code, relating to qualified tuition programs, made by Section 11025 of Public Law 115-97, relating to rollovers to ABLE programs from 529 programs, shall apply. | |
| 132 | + | 23711. Section 529 of the Internal Revenue Code, relating to qualified state tuition programs, shall apply, except as otherwise provided.(a) Section 529(a) of the Internal Revenue Code Code, relating to general rule, is modified as follows:(1) By substituting the phrase under Part 10 (commencing with Section 17001) and this part in lieu of the phrase under this subtitle.(2) By substituting Article 2 (commencing with Section 23731) in lieu of section 511.(b) A copy of the report required to be filed with the Secretary of the Treasury under Section 529(d) of the Internal Revenue Code Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(c) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529 of the Internal Revenue Code, relating to qualified tuition programs, made by Section 11025 of Public Law 115-97, relating to rollovers to ABLE programs from 529 programs, shall apply. | |
| 137 | 133 | ||
| 138 | - | 23711. Section 529 of the Internal Revenue Code, relating to qualified state tuition programs, shall apply, except as otherwise provided.(a) Section 529(a) of the Internal Revenue Code, relating to general rule, is modified as follows:(1) By substituting the phrase under Part 10 (commencing with Section 17001) and this part in lieu of the phrase under this subtitle.(2) By substituting Article 2 (commencing with Section 23731) in lieu of section 511.(b) A copy of the report required to be filed with the Secretary of the Treasury under Section 529(d) of the Internal Revenue Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(c) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529 of the Internal Revenue Code, relating to qualified tuition programs, made by Section 11025 of Public Law 115-97, relating to rollovers to ABLE programs from 529 programs, shall apply. | |
| 134 | + | 23711. Section 529 of the Internal Revenue Code, relating to qualified state tuition programs, shall apply, except as otherwise provided.(a) Section 529(a) of the Internal Revenue Code Code, relating to general rule, is modified as follows:(1) By substituting the phrase under Part 10 (commencing with Section 17001) and this part in lieu of the phrase under this subtitle.(2) By substituting Article 2 (commencing with Section 23731) in lieu of section 511.(b) A copy of the report required to be filed with the Secretary of the Treasury under Section 529(d) of the Internal Revenue Code Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(c) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529 of the Internal Revenue Code, relating to qualified tuition programs, made by Section 11025 of Public Law 115-97, relating to rollovers to ABLE programs from 529 programs, shall apply. | |
| 139 | 135 | ||
| 140 | - | 23711. Section 529 of the Internal Revenue Code, relating to qualified state tuition programs, shall apply, except as otherwise provided.(a) Section 529(a) of the Internal Revenue Code, relating to general rule, is modified as follows:(1) By substituting the phrase under Part 10 (commencing with Section 17001) and this part in lieu of the phrase under this subtitle.(2) By substituting Article 2 (commencing with Section 23731) in lieu of section 511.(b) A copy of the report required to be filed with the Secretary of the Treasury under Section 529(d) of the Internal Revenue Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(c) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529 of the Internal Revenue Code, relating to qualified tuition programs, made by Section 11025 of Public Law 115-97, relating to rollovers to ABLE programs from 529 programs, shall apply. | |
| 136 | + | 23711. Section 529 of the Internal Revenue Code, relating to qualified state tuition programs, shall apply, except as otherwise provided.(a) Section 529(a) of the Internal Revenue Code Code, relating to general rule, is modified as follows:(1) By substituting the phrase under Part 10 (commencing with Section 17001) and this part in lieu of the phrase under this subtitle.(2) By substituting Article 2 (commencing with Section 23731) in lieu of section 511.(b) A copy of the report required to be filed with the Secretary of the Treasury under Section 529(d) of the Internal Revenue Code Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(c) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529 of the Internal Revenue Code, relating to qualified tuition programs, made by Section 11025 of Public Law 115-97, relating to rollovers to ABLE programs from 529 programs, shall apply. | |
| 141 | 137 | ||
| 142 | 138 | ||
| 143 | 139 | ||
| 144 | 140 | 23711. Section 529 of the Internal Revenue Code, relating to qualified state tuition programs, shall apply, except as otherwise provided. | |
| 145 | 141 | ||
| 146 | - | (a) Section 529(a) of the Internal Revenue Code, relating to general rule, is modified as follows: | |
| 142 | + | (a) Section 529(a) of the Internal Revenue Code Code, relating to general rule, is modified as follows: | |
| 147 | 143 | ||
| 148 | 144 | (1) By substituting the phrase under Part 10 (commencing with Section 17001) and this part in lieu of the phrase under this subtitle. | |
| 149 | 145 | ||
| 150 | 146 | (2) By substituting Article 2 (commencing with Section 23731) in lieu of section 511. | |
| 151 | 147 | ||
| 152 | - | (b) A copy of the report required to be filed with the Secretary of the Treasury under Section 529(d) of the Internal Revenue Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section. | |
| 148 | + | (b) A copy of the report required to be filed with the Secretary of the Treasury under Section 529(d) of the Internal Revenue Code Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section. | |
| 153 | 149 | ||
| 154 | 150 | (c) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529 of the Internal Revenue Code, relating to qualified tuition programs, made by Section 11025 of Public Law 115-97, relating to rollovers to ABLE programs from 529 programs, shall apply. | |
| 155 | 151 | ||
| 156 | - | SEC. 4 | |
| 152 | + | SEC. 4. Section 23711.4 of the Revenue and Taxation Code is amended to read:23711.4. (a) For taxable years beginning on or after January 1, 2016, Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, added by Section 102 of Division B of Public Law 113-295, shall apply, except as otherwise provided.(a)(1) Section 529A(a) of the Internal Revenue Code Code, relating to general rules, is modified as follows:(1)(A) By substituting the phrase under Part 10 (commencing with Section 17001) and this part in lieu of the phrase under this subtitle.(2)(B) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(b)(2) Section 529A(c)(3)(A) of the Internal Revenue Code is modified by substituting 2.5 percent in lieu of 10 percent.(c)(3) A copy of the report required to be filed with the Secretary of the Treasury under Section 529A(d) of the Internal revenue Code, relating to reports reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(b) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, made by Section 11024 of Public Law 115-97, relating to increased contributions to ABLE accounts, shall apply. | |
| 157 | 153 | ||
| 158 | - | SEC. 4 | |
| 154 | + | SEC. 4. Section 23711.4 of the Revenue and Taxation Code is amended to read: | |
| 159 | 155 | ||
| 160 | - | ### SEC. 4. | |
| 156 | + | ### SEC. 4. | |
| 161 | 157 | ||
| 162 | - | 23711.4. (a) For taxable years beginning on or after January 1, 2016, Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, added by Section 102 of Division B of Public Law 113-295, shall apply, except as otherwise provided.(1) Section 529A(a) of the Internal Revenue Code, relating to general rules, is modified as follows:(A) By substituting the phrase under Part 10 (commencing with Section 17001) and this part in lieu of the phrase under this subtitle.(B) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(2) Section 529A(c)(3)(A) of the Internal Revenue Code is modified by substituting 2.5 percent in lieu of 10 percent.(3) A copy of the report required to be filed with the Secretary of the Treasury under Section 529A(d) of the Internal revenue Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(b) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, made by Section 11024 of Public Law 115-97, relating to increased contributions to ABLE accounts, shall apply. | |
| 158 | + | 23711.4. (a) For taxable years beginning on or after January 1, 2016, Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, added by Section 102 of Division B of Public Law 113-295, shall apply, except as otherwise provided.(a)(1) Section 529A(a) of the Internal Revenue Code Code, relating to general rules, is modified as follows:(1)(A) By substituting the phrase under Part 10 (commencing with Section 17001) and this part in lieu of the phrase under this subtitle.(2)(B) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(b)(2) Section 529A(c)(3)(A) of the Internal Revenue Code is modified by substituting 2.5 percent in lieu of 10 percent.(c)(3) A copy of the report required to be filed with the Secretary of the Treasury under Section 529A(d) of the Internal revenue Code, relating to reports reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(b) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, made by Section 11024 of Public Law 115-97, relating to increased contributions to ABLE accounts, shall apply. | |
| 163 | 159 | ||
| 164 | - | 23711.4. (a) For taxable years beginning on or after January 1, 2016, Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, added by Section 102 of Division B of Public Law 113-295, shall apply, except as otherwise provided.(1) Section 529A(a) of the Internal Revenue Code, relating to general rules, is modified as follows:(A) By substituting the phrase under Part 10 (commencing with Section 17001) and this part in lieu of the phrase under this subtitle.(B) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(2) Section 529A(c)(3)(A) of the Internal Revenue Code is modified by substituting 2.5 percent in lieu of 10 percent.(3) A copy of the report required to be filed with the Secretary of the Treasury under Section 529A(d) of the Internal revenue Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(b) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, made by Section 11024 of Public Law 115-97, relating to increased contributions to ABLE accounts, shall apply. | |
| 160 | + | 23711.4. (a) For taxable years beginning on or after January 1, 2016, Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, added by Section 102 of Division B of Public Law 113-295, shall apply, except as otherwise provided.(a)(1) Section 529A(a) of the Internal Revenue Code Code, relating to general rules, is modified as follows:(1)(A) By substituting the phrase under Part 10 (commencing with Section 17001) and this part in lieu of the phrase under this subtitle.(2)(B) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(b)(2) Section 529A(c)(3)(A) of the Internal Revenue Code is modified by substituting 2.5 percent in lieu of 10 percent.(c)(3) A copy of the report required to be filed with the Secretary of the Treasury under Section 529A(d) of the Internal revenue Code, relating to reports reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(b) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, made by Section 11024 of Public Law 115-97, relating to increased contributions to ABLE accounts, shall apply. | |
| 165 | 161 | ||
| 166 | - | 23711.4. (a) For taxable years beginning on or after January 1, 2016, Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, added by Section 102 of Division B of Public Law 113-295, shall apply, except as otherwise provided.(1) Section 529A(a) of the Internal Revenue Code, relating to general rules, is modified as follows:(A) By substituting the phrase under Part 10 (commencing with Section 17001) and this part in lieu of the phrase under this subtitle.(B) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(2) Section 529A(c)(3)(A) of the Internal Revenue Code is modified by substituting 2.5 percent in lieu of 10 percent.(3) A copy of the report required to be filed with the Secretary of the Treasury under Section 529A(d) of the Internal revenue Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(b) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, made by Section 11024 of Public Law 115-97, relating to increased contributions to ABLE accounts, shall apply. | |
| 162 | + | 23711.4. (a) For taxable years beginning on or after January 1, 2016, Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, added by Section 102 of Division B of Public Law 113-295, shall apply, except as otherwise provided.(a)(1) Section 529A(a) of the Internal Revenue Code Code, relating to general rules, is modified as follows:(1)(A) By substituting the phrase under Part 10 (commencing with Section 17001) and this part in lieu of the phrase under this subtitle.(2)(B) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511.(b)(2) Section 529A(c)(3)(A) of the Internal Revenue Code is modified by substituting 2.5 percent in lieu of 10 percent.(c)(3) A copy of the report required to be filed with the Secretary of the Treasury under Section 529A(d) of the Internal revenue Code, relating to reports reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section.(b) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, made by Section 11024 of Public Law 115-97, relating to increased contributions to ABLE accounts, shall apply. | |
| 167 | 163 | ||
| 168 | 164 | ||
| 169 | 165 | ||
| 170 | 166 | 23711.4. (a) For taxable years beginning on or after January 1, 2016, Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, added by Section 102 of Division B of Public Law 113-295, shall apply, except as otherwise provided. | |
| 171 | 167 | ||
| 172 | - | (1) Section 529A(a) of the Internal Revenue Code, relating to general rules, is modified as follows: | |
| 168 | + | (a) | |
| 169 | + | ||
| 170 | + | ||
| 171 | + | ||
| 172 | + | (1) Section 529A(a) of the Internal Revenue Code Code, relating to general rules, is modified as follows: | |
| 173 | + | ||
| 174 | + | (1) | |
| 175 | + | ||
| 176 | + | ||
| 173 | 177 | ||
| 174 | 178 | (A) By substituting the phrase under Part 10 (commencing with Section 17001) and this part in lieu of the phrase under this subtitle. | |
| 175 | 179 | ||
| 180 | + | (2) | |
| 181 | + | ||
| 182 | + | ||
| 183 | + | ||
| 176 | 184 | (B) By substituting Article 2 (commencing with Section 23731) in lieu of Section 511. | |
| 185 | + | ||
| 186 | + | (b) | |
| 187 | + | ||
| 188 | + | ||
| 177 | 189 | ||
| 178 | 190 | (2) Section 529A(c)(3)(A) of the Internal Revenue Code is modified by substituting 2.5 percent in lieu of 10 percent. | |
| 179 | 191 | ||
| 180 | - | (3) A copy of the report required to be filed with the Secretary of the Treasury under Section 529A(d) of the Internal revenue Code, relating to reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section. | |
| 192 | + | (c) | |
| 193 | + | ||
| 194 | + | ||
| 195 | + | ||
| 196 | + | (3) A copy of the report required to be filed with the Secretary of the Treasury under Section 529A(d) of the Internal revenue Code, relating to reports reports, shall be filed with the Franchise Tax Board at the same time and in the same manner as specified in that section. | |
| 181 | 197 | ||
| 182 | 198 | (b) For taxable years beginning on or after January 1, 2020, and before January 1, 2026, the amendments to Section 529A of the Internal Revenue Code, relating to qualified ABLE programs, made by Section 11024 of Public Law 115-97, relating to increased contributions to ABLE accounts, shall apply. | |
| 183 | 199 | ||
| 184 | - | SEC. 5 | |
| 200 | + | SEC. 5. Section 24654 of the Revenue and Taxation Code is amended to read:24654. (a) Section 448 of the Internal Revenue Code, relating to limitation on use of cash method of accounting, shall apply, except as otherwise provided.(b) For purposes of applying Section 448 of the Internal Revenue Code, relating to limitation on use of cash method of accounting, Sections 801(d)(2), 801(d)(3), and 801(d)(5) of the Tax Reform Act of 1986 (Public Law 99-514), as modified by Section 1008(a) of Public Law 100-647, shall apply to each taxable year beginning on or after January 1, 1987.(c) (1) For taxable years beginning on or after January 1, 2020, the amendments to Section 448 of the Internal Revenue Code, relating to limitation on use of cash method of accounting, made by Section 13102 of Public Law 115-97, relating to small business accounting method reform and simplification, shall apply, except as otherwise provided.(2) Section 448(c)(4) of the Internal Revenue Code, relating to adjustment for inflation, is modified by substituting the phrase beginning on or after January 1, 2020 in lieu of the phrase beginning after December 31, 2018.(3) Section 448(c)(4)(B) of the Internal Revenue Code is modified by substituting the phrase calendar year 2018 in lieu of the phrase calendar year 2017.(4) Section 448(d)(7), relating to coordination with section 481, is modified by substituting Franchise Tax Board in lieu of Secretary. | |
| 185 | 201 | ||
| 186 | - | SEC. 5 | |
| 202 | + | SEC. 5. Section 24654 of the Revenue and Taxation Code is amended to read: | |
| 187 | 203 | ||
| 188 | - | ### SEC. 5. | |
| 204 | + | ### SEC. 5. | |
| 189 | 205 | ||
| 190 | 206 | 24654. (a) Section 448 of the Internal Revenue Code, relating to limitation on use of cash method of accounting, shall apply, except as otherwise provided.(b) For purposes of applying Section 448 of the Internal Revenue Code, relating to limitation on use of cash method of accounting, Sections 801(d)(2), 801(d)(3), and 801(d)(5) of the Tax Reform Act of 1986 (Public Law 99-514), as modified by Section 1008(a) of Public Law 100-647, shall apply to each taxable year beginning on or after January 1, 1987.(c) (1) For taxable years beginning on or after January 1, 2020, the amendments to Section 448 of the Internal Revenue Code, relating to limitation on use of cash method of accounting, made by Section 13102 of Public Law 115-97, relating to small business accounting method reform and simplification, shall apply, except as otherwise provided.(2) Section 448(c)(4) of the Internal Revenue Code, relating to adjustment for inflation, is modified by substituting the phrase beginning on or after January 1, 2020 in lieu of the phrase beginning after December 31, 2018.(3) Section 448(c)(4)(B) of the Internal Revenue Code is modified by substituting the phrase calendar year 2018 in lieu of the phrase calendar year 2017.(4) Section 448(d)(7), relating to coordination with section 481, is modified by substituting Franchise Tax Board in lieu of Secretary. | |
| 191 | 207 | ||
| 192 | 208 | 24654. (a) Section 448 of the Internal Revenue Code, relating to limitation on use of cash method of accounting, shall apply, except as otherwise provided.(b) For purposes of applying Section 448 of the Internal Revenue Code, relating to limitation on use of cash method of accounting, Sections 801(d)(2), 801(d)(3), and 801(d)(5) of the Tax Reform Act of 1986 (Public Law 99-514), as modified by Section 1008(a) of Public Law 100-647, shall apply to each taxable year beginning on or after January 1, 1987.(c) (1) For taxable years beginning on or after January 1, 2020, the amendments to Section 448 of the Internal Revenue Code, relating to limitation on use of cash method of accounting, made by Section 13102 of Public Law 115-97, relating to small business accounting method reform and simplification, shall apply, except as otherwise provided.(2) Section 448(c)(4) of the Internal Revenue Code, relating to adjustment for inflation, is modified by substituting the phrase beginning on or after January 1, 2020 in lieu of the phrase beginning after December 31, 2018.(3) Section 448(c)(4)(B) of the Internal Revenue Code is modified by substituting the phrase calendar year 2018 in lieu of the phrase calendar year 2017.(4) Section 448(d)(7), relating to coordination with section 481, is modified by substituting Franchise Tax Board in lieu of Secretary. | |
| 193 | 209 | ||
| 194 | 210 | 24654. (a) Section 448 of the Internal Revenue Code, relating to limitation on use of cash method of accounting, shall apply, except as otherwise provided.(b) For purposes of applying Section 448 of the Internal Revenue Code, relating to limitation on use of cash method of accounting, Sections 801(d)(2), 801(d)(3), and 801(d)(5) of the Tax Reform Act of 1986 (Public Law 99-514), as modified by Section 1008(a) of Public Law 100-647, shall apply to each taxable year beginning on or after January 1, 1987.(c) (1) For taxable years beginning on or after January 1, 2020, the amendments to Section 448 of the Internal Revenue Code, relating to limitation on use of cash method of accounting, made by Section 13102 of Public Law 115-97, relating to small business accounting method reform and simplification, shall apply, except as otherwise provided.(2) Section 448(c)(4) of the Internal Revenue Code, relating to adjustment for inflation, is modified by substituting the phrase beginning on or after January 1, 2020 in lieu of the phrase beginning after December 31, 2018.(3) Section 448(c)(4)(B) of the Internal Revenue Code is modified by substituting the phrase calendar year 2018 in lieu of the phrase calendar year 2017.(4) Section 448(d)(7), relating to coordination with section 481, is modified by substituting Franchise Tax Board in lieu of Secretary. | |
| 195 | 211 | ||
| 196 | 212 | ||
| 197 | 213 | ||
| 198 | 214 | 24654. (a) Section 448 of the Internal Revenue Code, relating to limitation on use of cash method of accounting, shall apply, except as otherwise provided. | |
| 199 | 215 | ||
| 200 | 216 | (b) For purposes of applying Section 448 of the Internal Revenue Code, relating to limitation on use of cash method of accounting, Sections 801(d)(2), 801(d)(3), and 801(d)(5) of the Tax Reform Act of 1986 (Public Law 99-514), as modified by Section 1008(a) of Public Law 100-647, shall apply to each taxable year beginning on or after January 1, 1987. | |
| 201 | 217 | ||
| 202 | 218 | (c) (1) For taxable years beginning on or after January 1, 2020, the amendments to Section 448 of the Internal Revenue Code, relating to limitation on use of cash method of accounting, made by Section 13102 of Public Law 115-97, relating to small business accounting method reform and simplification, shall apply, except as otherwise provided. | |
| 203 | 219 | ||
| 204 | 220 | (2) Section 448(c)(4) of the Internal Revenue Code, relating to adjustment for inflation, is modified by substituting the phrase beginning on or after January 1, 2020 in lieu of the phrase beginning after December 31, 2018. | |
| 205 | 221 | ||
| 206 | 222 | (3) Section 448(c)(4)(B) of the Internal Revenue Code is modified by substituting the phrase calendar year 2018 in lieu of the phrase calendar year 2017. | |
| 207 | 223 | ||
| 208 | 224 | (4) Section 448(d)(7), relating to coordination with section 481, is modified by substituting Franchise Tax Board in lieu of Secretary. | |
| 209 | 225 | ||
| 210 | - | SEC. 6 | |
| 226 | + | SEC. 6. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 211 | 227 | ||
| 212 | - | SEC. 6 | |
| 228 | + | SEC. 6. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 213 | 229 | ||
| 214 | - | SEC. 6 | |
| 230 | + | SEC. 6. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 215 | 231 | ||
| 216 | - | ### SEC. 6. | |
| 232 | + | ### SEC. 6. |