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California Assembly Bill AB1380

California 2021-2022 Regular Session

California Assembly Bill AB1380 Compare Versions

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11 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 1380Introduced by Assembly Member Fong(Coauthors: Assembly Members Megan Dahle and Valladares)February 19, 2021 An act to amend Sections 17131.8 and 24308.6 of the Revenue and Taxation Code, relating to taxation, and declaring the urgency thereof, to take effect immediately.LEGISLATIVE COUNSEL'S DIGESTAB 1380, as introduced, Fong. Taxation: Federal Consolidated Appropriations Act, 2021. The Personal Income Tax Law and the Corporation Tax Law, in conformity with federal income tax law, generally define gross income as income from whatever source derived, except as specifically excluded, and provide various exclusions from gross income. Existing law, in conformity with the federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act), and its subsequent amendments in the Paycheck Protection Program and Health Care Enhancement Act and the Paycheck Protection Program Flexibility Act of 2020, among other things, excludes any amounts of covered loans forgiven under the CARES Act from gross income for purposes of the Personal Income Tax Law and the Corporation Tax Law. Existing law reduces the amount of any credit or deduction otherwise allowed under the Personal Income Tax and the Corporation Tax Law for any amount paid or incurred by the taxpayer upon which this exclusion is based by the amount of the exclusion allowed. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements.Existing federal law, the Consolidated Appropriations Act, 2021, prohibits reductions in tax deductions, denials of basis adjustments, and reductions in tax attributes for federal income tax purposes based on the exclusion from gross income provided in the federal CARES Act and its subsequent amendments.This bill would adopt specified provisions of the Consolidated Appropriations Act, 2021, prohibiting any reduction in tax deductions, denials of basis adjustments, and reductions in tax attributes based on the exclusion from gross income provided for any loan amount forgiven in modified conformity with the federal CARES Act and its subsequent amendments. This bill would provide findings to comply with the additional information requirement for any bill authorizing a new tax expenditure.This bill would also make findings and declarations related to a gift of public funds.This bill would declare that it is to take effect immediately as an urgency statute.Digest Key Vote: 2/3 Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 17131.8 of the Revenue and Taxation Code is amended to read:17131.8. (a) For taxable years beginning on and or after January 1, 2020, gross income does not include any covered loan amount forgiven pursuant to Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116-136), pursuant to the Paycheck Protection Program and Health Care Enhancement Act (Public Law 116-139), or pursuant to the Paycheck Protection Program Flexibility Act of 2020 (Public Law 116-142). 116-142), or pursuant to the Consolidated Appropriations Act, 2021 (Public Law 116-260).(b)Any credit or deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which this exclusion is based shall be reduced by the amount of the exclusion allowed under this section.(b) Notwithstanding Section 17280, for taxable years beginning on or after January 1, 2020, Section 276 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply.(c) (1) Notwithstanding Section 17280, for taxable years beginning on or after January 1, 2020, Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided in this subdivision.(2) Subsection (a) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase UNITED STATES TREASURY PROGRAM MANAGEMENT AUTHORITY.--For purposes of the Internal Revenue Code of 1986 with For purposes of this part.(3) Subsections (b), (c), (d), and (e) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply.(c)(d) For purposes of this section, covered loan has the same meaning as in Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116136). 116-142), or pursuant to the Consolidated Appropriations Act, 2021 (Public Law 116-260).(e) For the purposes of complying with Section 41 with respect to this section and Section 24308.6, the Legislature finds and declares as follows:(1) The specific goal, purpose, and objective that the tax expenditure will achieve is to provide California businesses relief from taxation on expenses made with Paycheck Protection Program loans.(2) Detailed performance indicators for the Legislature to use in determining whether the tax expenditure meets the goals, purposes, and objectives stated in subdivision (a) are the following:(A) The number of businesses claiming expenditures made with Paycheck Protection Program loans.(B) The change in total deductions, in dollars, taken by businesses for taxable years after enactment of the amendments made by this bill, compared to the total deductions for taxable years prior to the enactment of the amendments made by this bill.(3) Notwithstanding Section 19542, the Franchise Tax Board shall provide a written report, in compliance with Section 9795 of the Government Code, containing data on the performance indicators described in subdivision (b) to the Assembly Committee on Budget, the Senate Committee on Budget and Fiscal Review, the Assembly and Senate Committees on Appropriations, the Assembly Committee on Revenue and Taxation, and the Senate Committee on Governance and Finance.(f) The amendments made by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2020.SEC. 2. Section 24308.6 of the Revenue and Taxation Code is amended to read:24308.6. (a) For taxable years beginning on and or after January 1, 2020, gross income does not include any covered loan amount forgiven pursuant to Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116-136), pursuant to the Paycheck Protection Program and Health Care Enhancement Act (Public Law 116-139), or pursuant to the Paycheck Protection Program Flexibility Act of 2020 (Public Law 116-142).116-142), or pursuant to the Consolidated Appropriations Act, 2021 (Public Law 116-260).(b)Any credit or deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which this exclusion is based shall be reduced by the amount of the exclusion allowed under this section.(b) Notwithstanding Section 24425, for taxable years beginning on or after January 1, 2020, Section 276 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply.(c) (1) Notwithstanding Section 24425, for taxable years beginning on or after January 1, 2020, Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided in this subdivision.(2) Subsection (a) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase UNITED STATES TREASURY PROGRAM MANAGEMENT AUTHORITY.--For purposes of the Internal Revenue Code of 1986 with For purposes of this part.(3) Subsections (b), (c), (d), and (e) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply. (c)(d) For purposes of this section, covered loan has the same meaning as in Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116136). 116-142), or pursuant to the Consolidated Appropriations Act, 2021 (Public Law 116-260).(e) The amendments made by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2020.SEC. 3. The Legislature hereby finds and declares that the deductions and other tax benefits authorized by the amendments to Sections 17131.8 and 24308.6 of the Revenue and Taxation Code made by this bill serve the public purpose of providing California businesses relief from taxation on expenses made with Paycheck Protection Program loans and do not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.SEC. 4. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:In order to provide, as soon as possible, California businesses relief from taxation on expenses made with Paycheck Protection Program loans, it is necessary that this act go into immediate effect.
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33 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 1380Introduced by Assembly Member Fong(Coauthors: Assembly Members Megan Dahle and Valladares)February 19, 2021 An act to amend Sections 17131.8 and 24308.6 of the Revenue and Taxation Code, relating to taxation, and declaring the urgency thereof, to take effect immediately.LEGISLATIVE COUNSEL'S DIGESTAB 1380, as introduced, Fong. Taxation: Federal Consolidated Appropriations Act, 2021. The Personal Income Tax Law and the Corporation Tax Law, in conformity with federal income tax law, generally define gross income as income from whatever source derived, except as specifically excluded, and provide various exclusions from gross income. Existing law, in conformity with the federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act), and its subsequent amendments in the Paycheck Protection Program and Health Care Enhancement Act and the Paycheck Protection Program Flexibility Act of 2020, among other things, excludes any amounts of covered loans forgiven under the CARES Act from gross income for purposes of the Personal Income Tax Law and the Corporation Tax Law. Existing law reduces the amount of any credit or deduction otherwise allowed under the Personal Income Tax and the Corporation Tax Law for any amount paid or incurred by the taxpayer upon which this exclusion is based by the amount of the exclusion allowed. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements.Existing federal law, the Consolidated Appropriations Act, 2021, prohibits reductions in tax deductions, denials of basis adjustments, and reductions in tax attributes for federal income tax purposes based on the exclusion from gross income provided in the federal CARES Act and its subsequent amendments.This bill would adopt specified provisions of the Consolidated Appropriations Act, 2021, prohibiting any reduction in tax deductions, denials of basis adjustments, and reductions in tax attributes based on the exclusion from gross income provided for any loan amount forgiven in modified conformity with the federal CARES Act and its subsequent amendments. This bill would provide findings to comply with the additional information requirement for any bill authorizing a new tax expenditure.This bill would also make findings and declarations related to a gift of public funds.This bill would declare that it is to take effect immediately as an urgency statute.Digest Key Vote: 2/3 Appropriation: NO Fiscal Committee: YES Local Program: NO
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99 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION
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1111 Assembly Bill
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1313 No. 1380
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1515 Introduced by Assembly Member Fong(Coauthors: Assembly Members Megan Dahle and Valladares)February 19, 2021
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1717 Introduced by Assembly Member Fong(Coauthors: Assembly Members Megan Dahle and Valladares)
1818 February 19, 2021
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2020 An act to amend Sections 17131.8 and 24308.6 of the Revenue and Taxation Code, relating to taxation, and declaring the urgency thereof, to take effect immediately.
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2222 LEGISLATIVE COUNSEL'S DIGEST
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2424 ## LEGISLATIVE COUNSEL'S DIGEST
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2626 AB 1380, as introduced, Fong. Taxation: Federal Consolidated Appropriations Act, 2021.
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2828 The Personal Income Tax Law and the Corporation Tax Law, in conformity with federal income tax law, generally define gross income as income from whatever source derived, except as specifically excluded, and provide various exclusions from gross income. Existing law, in conformity with the federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act), and its subsequent amendments in the Paycheck Protection Program and Health Care Enhancement Act and the Paycheck Protection Program Flexibility Act of 2020, among other things, excludes any amounts of covered loans forgiven under the CARES Act from gross income for purposes of the Personal Income Tax Law and the Corporation Tax Law. Existing law reduces the amount of any credit or deduction otherwise allowed under the Personal Income Tax and the Corporation Tax Law for any amount paid or incurred by the taxpayer upon which this exclusion is based by the amount of the exclusion allowed. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements.Existing federal law, the Consolidated Appropriations Act, 2021, prohibits reductions in tax deductions, denials of basis adjustments, and reductions in tax attributes for federal income tax purposes based on the exclusion from gross income provided in the federal CARES Act and its subsequent amendments.This bill would adopt specified provisions of the Consolidated Appropriations Act, 2021, prohibiting any reduction in tax deductions, denials of basis adjustments, and reductions in tax attributes based on the exclusion from gross income provided for any loan amount forgiven in modified conformity with the federal CARES Act and its subsequent amendments. This bill would provide findings to comply with the additional information requirement for any bill authorizing a new tax expenditure.This bill would also make findings and declarations related to a gift of public funds.This bill would declare that it is to take effect immediately as an urgency statute.
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3030 The Personal Income Tax Law and the Corporation Tax Law, in conformity with federal income tax law, generally define gross income as income from whatever source derived, except as specifically excluded, and provide various exclusions from gross income. Existing law, in conformity with the federal Coronavirus Aid, Relief, and Economic Security Act (CARES Act), and its subsequent amendments in the Paycheck Protection Program and Health Care Enhancement Act and the Paycheck Protection Program Flexibility Act of 2020, among other things, excludes any amounts of covered loans forgiven under the CARES Act from gross income for purposes of the Personal Income Tax Law and the Corporation Tax Law. Existing law reduces the amount of any credit or deduction otherwise allowed under the Personal Income Tax and the Corporation Tax Law for any amount paid or incurred by the taxpayer upon which this exclusion is based by the amount of the exclusion allowed. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
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3232 Existing federal law, the Consolidated Appropriations Act, 2021, prohibits reductions in tax deductions, denials of basis adjustments, and reductions in tax attributes for federal income tax purposes based on the exclusion from gross income provided in the federal CARES Act and its subsequent amendments.
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3434 This bill would adopt specified provisions of the Consolidated Appropriations Act, 2021, prohibiting any reduction in tax deductions, denials of basis adjustments, and reductions in tax attributes based on the exclusion from gross income provided for any loan amount forgiven in modified conformity with the federal CARES Act and its subsequent amendments. This bill would provide findings to comply with the additional information requirement for any bill authorizing a new tax expenditure.
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3636 This bill would also make findings and declarations related to a gift of public funds.
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3838 This bill would declare that it is to take effect immediately as an urgency statute.
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4040 ## Digest Key
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4242 ## Bill Text
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4444 The people of the State of California do enact as follows:SECTION 1. Section 17131.8 of the Revenue and Taxation Code is amended to read:17131.8. (a) For taxable years beginning on and or after January 1, 2020, gross income does not include any covered loan amount forgiven pursuant to Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116-136), pursuant to the Paycheck Protection Program and Health Care Enhancement Act (Public Law 116-139), or pursuant to the Paycheck Protection Program Flexibility Act of 2020 (Public Law 116-142). 116-142), or pursuant to the Consolidated Appropriations Act, 2021 (Public Law 116-260).(b)Any credit or deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which this exclusion is based shall be reduced by the amount of the exclusion allowed under this section.(b) Notwithstanding Section 17280, for taxable years beginning on or after January 1, 2020, Section 276 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply.(c) (1) Notwithstanding Section 17280, for taxable years beginning on or after January 1, 2020, Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided in this subdivision.(2) Subsection (a) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase UNITED STATES TREASURY PROGRAM MANAGEMENT AUTHORITY.--For purposes of the Internal Revenue Code of 1986 with For purposes of this part.(3) Subsections (b), (c), (d), and (e) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply.(c)(d) For purposes of this section, covered loan has the same meaning as in Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116136). 116-142), or pursuant to the Consolidated Appropriations Act, 2021 (Public Law 116-260).(e) For the purposes of complying with Section 41 with respect to this section and Section 24308.6, the Legislature finds and declares as follows:(1) The specific goal, purpose, and objective that the tax expenditure will achieve is to provide California businesses relief from taxation on expenses made with Paycheck Protection Program loans.(2) Detailed performance indicators for the Legislature to use in determining whether the tax expenditure meets the goals, purposes, and objectives stated in subdivision (a) are the following:(A) The number of businesses claiming expenditures made with Paycheck Protection Program loans.(B) The change in total deductions, in dollars, taken by businesses for taxable years after enactment of the amendments made by this bill, compared to the total deductions for taxable years prior to the enactment of the amendments made by this bill.(3) Notwithstanding Section 19542, the Franchise Tax Board shall provide a written report, in compliance with Section 9795 of the Government Code, containing data on the performance indicators described in subdivision (b) to the Assembly Committee on Budget, the Senate Committee on Budget and Fiscal Review, the Assembly and Senate Committees on Appropriations, the Assembly Committee on Revenue and Taxation, and the Senate Committee on Governance and Finance.(f) The amendments made by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2020.SEC. 2. Section 24308.6 of the Revenue and Taxation Code is amended to read:24308.6. (a) For taxable years beginning on and or after January 1, 2020, gross income does not include any covered loan amount forgiven pursuant to Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116-136), pursuant to the Paycheck Protection Program and Health Care Enhancement Act (Public Law 116-139), or pursuant to the Paycheck Protection Program Flexibility Act of 2020 (Public Law 116-142).116-142), or pursuant to the Consolidated Appropriations Act, 2021 (Public Law 116-260).(b)Any credit or deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which this exclusion is based shall be reduced by the amount of the exclusion allowed under this section.(b) Notwithstanding Section 24425, for taxable years beginning on or after January 1, 2020, Section 276 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply.(c) (1) Notwithstanding Section 24425, for taxable years beginning on or after January 1, 2020, Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided in this subdivision.(2) Subsection (a) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase UNITED STATES TREASURY PROGRAM MANAGEMENT AUTHORITY.--For purposes of the Internal Revenue Code of 1986 with For purposes of this part.(3) Subsections (b), (c), (d), and (e) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply. (c)(d) For purposes of this section, covered loan has the same meaning as in Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116136). 116-142), or pursuant to the Consolidated Appropriations Act, 2021 (Public Law 116-260).(e) The amendments made by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2020.SEC. 3. The Legislature hereby finds and declares that the deductions and other tax benefits authorized by the amendments to Sections 17131.8 and 24308.6 of the Revenue and Taxation Code made by this bill serve the public purpose of providing California businesses relief from taxation on expenses made with Paycheck Protection Program loans and do not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.SEC. 4. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:In order to provide, as soon as possible, California businesses relief from taxation on expenses made with Paycheck Protection Program loans, it is necessary that this act go into immediate effect.
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4646 The people of the State of California do enact as follows:
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4848 ## The people of the State of California do enact as follows:
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5050 SECTION 1. Section 17131.8 of the Revenue and Taxation Code is amended to read:17131.8. (a) For taxable years beginning on and or after January 1, 2020, gross income does not include any covered loan amount forgiven pursuant to Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116-136), pursuant to the Paycheck Protection Program and Health Care Enhancement Act (Public Law 116-139), or pursuant to the Paycheck Protection Program Flexibility Act of 2020 (Public Law 116-142). 116-142), or pursuant to the Consolidated Appropriations Act, 2021 (Public Law 116-260).(b)Any credit or deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which this exclusion is based shall be reduced by the amount of the exclusion allowed under this section.(b) Notwithstanding Section 17280, for taxable years beginning on or after January 1, 2020, Section 276 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply.(c) (1) Notwithstanding Section 17280, for taxable years beginning on or after January 1, 2020, Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided in this subdivision.(2) Subsection (a) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase UNITED STATES TREASURY PROGRAM MANAGEMENT AUTHORITY.--For purposes of the Internal Revenue Code of 1986 with For purposes of this part.(3) Subsections (b), (c), (d), and (e) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply.(c)(d) For purposes of this section, covered loan has the same meaning as in Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116136). 116-142), or pursuant to the Consolidated Appropriations Act, 2021 (Public Law 116-260).(e) For the purposes of complying with Section 41 with respect to this section and Section 24308.6, the Legislature finds and declares as follows:(1) The specific goal, purpose, and objective that the tax expenditure will achieve is to provide California businesses relief from taxation on expenses made with Paycheck Protection Program loans.(2) Detailed performance indicators for the Legislature to use in determining whether the tax expenditure meets the goals, purposes, and objectives stated in subdivision (a) are the following:(A) The number of businesses claiming expenditures made with Paycheck Protection Program loans.(B) The change in total deductions, in dollars, taken by businesses for taxable years after enactment of the amendments made by this bill, compared to the total deductions for taxable years prior to the enactment of the amendments made by this bill.(3) Notwithstanding Section 19542, the Franchise Tax Board shall provide a written report, in compliance with Section 9795 of the Government Code, containing data on the performance indicators described in subdivision (b) to the Assembly Committee on Budget, the Senate Committee on Budget and Fiscal Review, the Assembly and Senate Committees on Appropriations, the Assembly Committee on Revenue and Taxation, and the Senate Committee on Governance and Finance.(f) The amendments made by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2020.
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5252 SECTION 1. Section 17131.8 of the Revenue and Taxation Code is amended to read:
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5454 ### SECTION 1.
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5656 17131.8. (a) For taxable years beginning on and or after January 1, 2020, gross income does not include any covered loan amount forgiven pursuant to Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116-136), pursuant to the Paycheck Protection Program and Health Care Enhancement Act (Public Law 116-139), or pursuant to the Paycheck Protection Program Flexibility Act of 2020 (Public Law 116-142). 116-142), or pursuant to the Consolidated Appropriations Act, 2021 (Public Law 116-260).(b)Any credit or deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which this exclusion is based shall be reduced by the amount of the exclusion allowed under this section.(b) Notwithstanding Section 17280, for taxable years beginning on or after January 1, 2020, Section 276 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply.(c) (1) Notwithstanding Section 17280, for taxable years beginning on or after January 1, 2020, Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided in this subdivision.(2) Subsection (a) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase UNITED STATES TREASURY PROGRAM MANAGEMENT AUTHORITY.--For purposes of the Internal Revenue Code of 1986 with For purposes of this part.(3) Subsections (b), (c), (d), and (e) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply.(c)(d) For purposes of this section, covered loan has the same meaning as in Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116136). 116-142), or pursuant to the Consolidated Appropriations Act, 2021 (Public Law 116-260).(e) For the purposes of complying with Section 41 with respect to this section and Section 24308.6, the Legislature finds and declares as follows:(1) The specific goal, purpose, and objective that the tax expenditure will achieve is to provide California businesses relief from taxation on expenses made with Paycheck Protection Program loans.(2) Detailed performance indicators for the Legislature to use in determining whether the tax expenditure meets the goals, purposes, and objectives stated in subdivision (a) are the following:(A) The number of businesses claiming expenditures made with Paycheck Protection Program loans.(B) The change in total deductions, in dollars, taken by businesses for taxable years after enactment of the amendments made by this bill, compared to the total deductions for taxable years prior to the enactment of the amendments made by this bill.(3) Notwithstanding Section 19542, the Franchise Tax Board shall provide a written report, in compliance with Section 9795 of the Government Code, containing data on the performance indicators described in subdivision (b) to the Assembly Committee on Budget, the Senate Committee on Budget and Fiscal Review, the Assembly and Senate Committees on Appropriations, the Assembly Committee on Revenue and Taxation, and the Senate Committee on Governance and Finance.(f) The amendments made by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2020.
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5858 17131.8. (a) For taxable years beginning on and or after January 1, 2020, gross income does not include any covered loan amount forgiven pursuant to Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116-136), pursuant to the Paycheck Protection Program and Health Care Enhancement Act (Public Law 116-139), or pursuant to the Paycheck Protection Program Flexibility Act of 2020 (Public Law 116-142). 116-142), or pursuant to the Consolidated Appropriations Act, 2021 (Public Law 116-260).(b)Any credit or deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which this exclusion is based shall be reduced by the amount of the exclusion allowed under this section.(b) Notwithstanding Section 17280, for taxable years beginning on or after January 1, 2020, Section 276 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply.(c) (1) Notwithstanding Section 17280, for taxable years beginning on or after January 1, 2020, Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided in this subdivision.(2) Subsection (a) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase UNITED STATES TREASURY PROGRAM MANAGEMENT AUTHORITY.--For purposes of the Internal Revenue Code of 1986 with For purposes of this part.(3) Subsections (b), (c), (d), and (e) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply.(c)(d) For purposes of this section, covered loan has the same meaning as in Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116136). 116-142), or pursuant to the Consolidated Appropriations Act, 2021 (Public Law 116-260).(e) For the purposes of complying with Section 41 with respect to this section and Section 24308.6, the Legislature finds and declares as follows:(1) The specific goal, purpose, and objective that the tax expenditure will achieve is to provide California businesses relief from taxation on expenses made with Paycheck Protection Program loans.(2) Detailed performance indicators for the Legislature to use in determining whether the tax expenditure meets the goals, purposes, and objectives stated in subdivision (a) are the following:(A) The number of businesses claiming expenditures made with Paycheck Protection Program loans.(B) The change in total deductions, in dollars, taken by businesses for taxable years after enactment of the amendments made by this bill, compared to the total deductions for taxable years prior to the enactment of the amendments made by this bill.(3) Notwithstanding Section 19542, the Franchise Tax Board shall provide a written report, in compliance with Section 9795 of the Government Code, containing data on the performance indicators described in subdivision (b) to the Assembly Committee on Budget, the Senate Committee on Budget and Fiscal Review, the Assembly and Senate Committees on Appropriations, the Assembly Committee on Revenue and Taxation, and the Senate Committee on Governance and Finance.(f) The amendments made by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2020.
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6060 17131.8. (a) For taxable years beginning on and or after January 1, 2020, gross income does not include any covered loan amount forgiven pursuant to Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116-136), pursuant to the Paycheck Protection Program and Health Care Enhancement Act (Public Law 116-139), or pursuant to the Paycheck Protection Program Flexibility Act of 2020 (Public Law 116-142). 116-142), or pursuant to the Consolidated Appropriations Act, 2021 (Public Law 116-260).(b)Any credit or deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which this exclusion is based shall be reduced by the amount of the exclusion allowed under this section.(b) Notwithstanding Section 17280, for taxable years beginning on or after January 1, 2020, Section 276 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply.(c) (1) Notwithstanding Section 17280, for taxable years beginning on or after January 1, 2020, Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided in this subdivision.(2) Subsection (a) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase UNITED STATES TREASURY PROGRAM MANAGEMENT AUTHORITY.--For purposes of the Internal Revenue Code of 1986 with For purposes of this part.(3) Subsections (b), (c), (d), and (e) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply.(c)(d) For purposes of this section, covered loan has the same meaning as in Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116136). 116-142), or pursuant to the Consolidated Appropriations Act, 2021 (Public Law 116-260).(e) For the purposes of complying with Section 41 with respect to this section and Section 24308.6, the Legislature finds and declares as follows:(1) The specific goal, purpose, and objective that the tax expenditure will achieve is to provide California businesses relief from taxation on expenses made with Paycheck Protection Program loans.(2) Detailed performance indicators for the Legislature to use in determining whether the tax expenditure meets the goals, purposes, and objectives stated in subdivision (a) are the following:(A) The number of businesses claiming expenditures made with Paycheck Protection Program loans.(B) The change in total deductions, in dollars, taken by businesses for taxable years after enactment of the amendments made by this bill, compared to the total deductions for taxable years prior to the enactment of the amendments made by this bill.(3) Notwithstanding Section 19542, the Franchise Tax Board shall provide a written report, in compliance with Section 9795 of the Government Code, containing data on the performance indicators described in subdivision (b) to the Assembly Committee on Budget, the Senate Committee on Budget and Fiscal Review, the Assembly and Senate Committees on Appropriations, the Assembly Committee on Revenue and Taxation, and the Senate Committee on Governance and Finance.(f) The amendments made by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2020.
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6464 17131.8. (a) For taxable years beginning on and or after January 1, 2020, gross income does not include any covered loan amount forgiven pursuant to Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116-136), pursuant to the Paycheck Protection Program and Health Care Enhancement Act (Public Law 116-139), or pursuant to the Paycheck Protection Program Flexibility Act of 2020 (Public Law 116-142). 116-142), or pursuant to the Consolidated Appropriations Act, 2021 (Public Law 116-260).
6565
6666 (b)Any credit or deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which this exclusion is based shall be reduced by the amount of the exclusion allowed under this section.
6767
6868
6969
7070 (b) Notwithstanding Section 17280, for taxable years beginning on or after January 1, 2020, Section 276 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply.
7171
7272 (c) (1) Notwithstanding Section 17280, for taxable years beginning on or after January 1, 2020, Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided in this subdivision.
7373
7474 (2) Subsection (a) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase UNITED STATES TREASURY PROGRAM MANAGEMENT AUTHORITY.--For purposes of the Internal Revenue Code of 1986 with For purposes of this part.
7575
7676 (3) Subsections (b), (c), (d), and (e) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply.
7777
7878 (c)
7979
8080
8181
8282 (d) For purposes of this section, covered loan has the same meaning as in Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116136). 116-142), or pursuant to the Consolidated Appropriations Act, 2021 (Public Law 116-260).
8383
8484 (e) For the purposes of complying with Section 41 with respect to this section and Section 24308.6, the Legislature finds and declares as follows:
8585
8686 (1) The specific goal, purpose, and objective that the tax expenditure will achieve is to provide California businesses relief from taxation on expenses made with Paycheck Protection Program loans.
8787
8888 (2) Detailed performance indicators for the Legislature to use in determining whether the tax expenditure meets the goals, purposes, and objectives stated in subdivision (a) are the following:
8989
9090 (A) The number of businesses claiming expenditures made with Paycheck Protection Program loans.
9191
9292 (B) The change in total deductions, in dollars, taken by businesses for taxable years after enactment of the amendments made by this bill, compared to the total deductions for taxable years prior to the enactment of the amendments made by this bill.
9393
9494 (3) Notwithstanding Section 19542, the Franchise Tax Board shall provide a written report, in compliance with Section 9795 of the Government Code, containing data on the performance indicators described in subdivision (b) to the Assembly Committee on Budget, the Senate Committee on Budget and Fiscal Review, the Assembly and Senate Committees on Appropriations, the Assembly Committee on Revenue and Taxation, and the Senate Committee on Governance and Finance.
9595
9696 (f) The amendments made by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2020.
9797
9898 SEC. 2. Section 24308.6 of the Revenue and Taxation Code is amended to read:24308.6. (a) For taxable years beginning on and or after January 1, 2020, gross income does not include any covered loan amount forgiven pursuant to Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116-136), pursuant to the Paycheck Protection Program and Health Care Enhancement Act (Public Law 116-139), or pursuant to the Paycheck Protection Program Flexibility Act of 2020 (Public Law 116-142).116-142), or pursuant to the Consolidated Appropriations Act, 2021 (Public Law 116-260).(b)Any credit or deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which this exclusion is based shall be reduced by the amount of the exclusion allowed under this section.(b) Notwithstanding Section 24425, for taxable years beginning on or after January 1, 2020, Section 276 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply.(c) (1) Notwithstanding Section 24425, for taxable years beginning on or after January 1, 2020, Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided in this subdivision.(2) Subsection (a) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase UNITED STATES TREASURY PROGRAM MANAGEMENT AUTHORITY.--For purposes of the Internal Revenue Code of 1986 with For purposes of this part.(3) Subsections (b), (c), (d), and (e) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply. (c)(d) For purposes of this section, covered loan has the same meaning as in Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116136). 116-142), or pursuant to the Consolidated Appropriations Act, 2021 (Public Law 116-260).(e) The amendments made by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2020.
9999
100100 SEC. 2. Section 24308.6 of the Revenue and Taxation Code is amended to read:
101101
102102 ### SEC. 2.
103103
104104 24308.6. (a) For taxable years beginning on and or after January 1, 2020, gross income does not include any covered loan amount forgiven pursuant to Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116-136), pursuant to the Paycheck Protection Program and Health Care Enhancement Act (Public Law 116-139), or pursuant to the Paycheck Protection Program Flexibility Act of 2020 (Public Law 116-142).116-142), or pursuant to the Consolidated Appropriations Act, 2021 (Public Law 116-260).(b)Any credit or deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which this exclusion is based shall be reduced by the amount of the exclusion allowed under this section.(b) Notwithstanding Section 24425, for taxable years beginning on or after January 1, 2020, Section 276 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply.(c) (1) Notwithstanding Section 24425, for taxable years beginning on or after January 1, 2020, Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided in this subdivision.(2) Subsection (a) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase UNITED STATES TREASURY PROGRAM MANAGEMENT AUTHORITY.--For purposes of the Internal Revenue Code of 1986 with For purposes of this part.(3) Subsections (b), (c), (d), and (e) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply. (c)(d) For purposes of this section, covered loan has the same meaning as in Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116136). 116-142), or pursuant to the Consolidated Appropriations Act, 2021 (Public Law 116-260).(e) The amendments made by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2020.
105105
106106 24308.6. (a) For taxable years beginning on and or after January 1, 2020, gross income does not include any covered loan amount forgiven pursuant to Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116-136), pursuant to the Paycheck Protection Program and Health Care Enhancement Act (Public Law 116-139), or pursuant to the Paycheck Protection Program Flexibility Act of 2020 (Public Law 116-142).116-142), or pursuant to the Consolidated Appropriations Act, 2021 (Public Law 116-260).(b)Any credit or deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which this exclusion is based shall be reduced by the amount of the exclusion allowed under this section.(b) Notwithstanding Section 24425, for taxable years beginning on or after January 1, 2020, Section 276 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply.(c) (1) Notwithstanding Section 24425, for taxable years beginning on or after January 1, 2020, Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided in this subdivision.(2) Subsection (a) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase UNITED STATES TREASURY PROGRAM MANAGEMENT AUTHORITY.--For purposes of the Internal Revenue Code of 1986 with For purposes of this part.(3) Subsections (b), (c), (d), and (e) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply. (c)(d) For purposes of this section, covered loan has the same meaning as in Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116136). 116-142), or pursuant to the Consolidated Appropriations Act, 2021 (Public Law 116-260).(e) The amendments made by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2020.
107107
108108 24308.6. (a) For taxable years beginning on and or after January 1, 2020, gross income does not include any covered loan amount forgiven pursuant to Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116-136), pursuant to the Paycheck Protection Program and Health Care Enhancement Act (Public Law 116-139), or pursuant to the Paycheck Protection Program Flexibility Act of 2020 (Public Law 116-142).116-142), or pursuant to the Consolidated Appropriations Act, 2021 (Public Law 116-260).(b)Any credit or deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which this exclusion is based shall be reduced by the amount of the exclusion allowed under this section.(b) Notwithstanding Section 24425, for taxable years beginning on or after January 1, 2020, Section 276 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply.(c) (1) Notwithstanding Section 24425, for taxable years beginning on or after January 1, 2020, Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided in this subdivision.(2) Subsection (a) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase UNITED STATES TREASURY PROGRAM MANAGEMENT AUTHORITY.--For purposes of the Internal Revenue Code of 1986 with For purposes of this part.(3) Subsections (b), (c), (d), and (e) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply. (c)(d) For purposes of this section, covered loan has the same meaning as in Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116136). 116-142), or pursuant to the Consolidated Appropriations Act, 2021 (Public Law 116-260).(e) The amendments made by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2020.
109109
110110
111111
112112 24308.6. (a) For taxable years beginning on and or after January 1, 2020, gross income does not include any covered loan amount forgiven pursuant to Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116-136), pursuant to the Paycheck Protection Program and Health Care Enhancement Act (Public Law 116-139), or pursuant to the Paycheck Protection Program Flexibility Act of 2020 (Public Law 116-142).116-142), or pursuant to the Consolidated Appropriations Act, 2021 (Public Law 116-260).
113113
114114 (b)Any credit or deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which this exclusion is based shall be reduced by the amount of the exclusion allowed under this section.
115115
116116
117117
118118 (b) Notwithstanding Section 24425, for taxable years beginning on or after January 1, 2020, Section 276 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply.
119119
120120 (c) (1) Notwithstanding Section 24425, for taxable years beginning on or after January 1, 2020, Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided in this subdivision.
121121
122122 (2) Subsection (a) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase UNITED STATES TREASURY PROGRAM MANAGEMENT AUTHORITY.--For purposes of the Internal Revenue Code of 1986 with For purposes of this part.
123123
124124 (3) Subsections (b), (c), (d), and (e) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply.
125125
126126 (c)
127127
128128
129129
130130 (d) For purposes of this section, covered loan has the same meaning as in Section 1106 of the Coronavirus Aid, Relief, and Economic Security Act (Public Law 116136). 116-142), or pursuant to the Consolidated Appropriations Act, 2021 (Public Law 116-260).
131131
132132 (e) The amendments made by the act adding this subdivision shall be operative for taxable years beginning on or after January 1, 2020.
133133
134134 SEC. 3. The Legislature hereby finds and declares that the deductions and other tax benefits authorized by the amendments to Sections 17131.8 and 24308.6 of the Revenue and Taxation Code made by this bill serve the public purpose of providing California businesses relief from taxation on expenses made with Paycheck Protection Program loans and do not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.
135135
136136 SEC. 3. The Legislature hereby finds and declares that the deductions and other tax benefits authorized by the amendments to Sections 17131.8 and 24308.6 of the Revenue and Taxation Code made by this bill serve the public purpose of providing California businesses relief from taxation on expenses made with Paycheck Protection Program loans and do not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.
137137
138138 SEC. 3. The Legislature hereby finds and declares that the deductions and other tax benefits authorized by the amendments to Sections 17131.8 and 24308.6 of the Revenue and Taxation Code made by this bill serve the public purpose of providing California businesses relief from taxation on expenses made with Paycheck Protection Program loans and do not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.
139139
140140 ### SEC. 3.
141141
142142 SEC. 4. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:In order to provide, as soon as possible, California businesses relief from taxation on expenses made with Paycheck Protection Program loans, it is necessary that this act go into immediate effect.
143143
144144 SEC. 4. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:In order to provide, as soon as possible, California businesses relief from taxation on expenses made with Paycheck Protection Program loans, it is necessary that this act go into immediate effect.
145145
146146 SEC. 4. This act is an urgency statute necessary for the immediate preservation of the public peace, health, or safety within the meaning of Article IV of the California Constitution and shall go into immediate effect. The facts constituting the necessity are:
147147
148148 ### SEC. 4.
149149
150150 In order to provide, as soon as possible, California businesses relief from taxation on expenses made with Paycheck Protection Program loans, it is necessary that this act go into immediate effect.