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California Assembly Bill AB1612

California 2021-2022 Regular Session

California Assembly Bill AB1612 Compare Versions

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11 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 1612Introduced by Assembly Member BurkeJanuary 05, 2022 An act to add Sections 17158.3 and 24308.3 to the Revenue and Taxation Code, relating to taxation, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGESTAB 1612, as introduced, Burke. Taxation: Federal Consolidated Appropriations Act, 2021: Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act: shuttered venue operator grants.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, and provide various exclusions from gross income. 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 Hard-Hit Small Businesses, Nonprofits, and Venues Act, among other things, awards grants to eligible shuttered venue operators, including live venue operators or promoters, theatrical producers, and live performing arts organization operators. Existing federal law excludes from gross income for purposes of federal income taxes any amount received in the form of a shuttered venue operator grant, as specified. Existing federal law prohibits reductions in tax deductions, reductions in tax attributes, and denials of basis adjustments, for federal income tax purposes based on that exclusion.This bill, for taxable years beginning on or after January 1, 2019, and in conformity with federal law, would exclude from gross income any amount received in the form of a federal shuttered venue operator grant. The bill would adopt, except as provided, the provisions of the federal Consolidated Appropriations Act, 2021, prohibiting any reduction in tax deductions, reductions in tax attributes, and denials of basis adjustments based on the exclusion from gross income, as provided.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 17158.3 is added to the Revenue and Taxation Code, to read:17158.3. (a) For taxable years beginning on or after January 1, 2019, gross income does not include any amount awarded as a shuttered venue operator grant pursuant to Section 9009a of Title 15 of the United States Code.(b) (1) Notwithstanding Section 17280, for taxable years beginning on or after January 1, 2019, subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided.(2) Subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase For purposes of the Internal Revenue Code of 1986 with For purposes of this part.(3) Paragraphs (2) and (3) of subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply to an ineligible entity.(c) For purposes of this section: (1) Ineligible entity means a taxpayer that either:(A) Is a publicly-traded company.(B) Does not meet the reduction from the gross receipts requirements of Section 636(a)(37)(A)(iv)(bb) of Title 15 of the United States Code, as added by Section 311 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(2) Publicly-traded company means a publicly-traded entity as described in Section 342 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(d) This section shall be operative for taxable years beginning on or after January 1, 2019.SEC. 2. Section 24308.3 is added to the Revenue and Taxation Code, to read:24308.3. (a) For taxable years beginning on or after January 1, 2019, gross income does not include any amount awarded as a shuttered venue operator grant pursuant to Section 9009a of Title 15 of the United States Code.(b) (1) Notwithstanding Section 24425, for taxable years beginning on or after January 1, 2019, subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided.(2) Subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase For purposes of the Internal Revenue Code of 1986 with For purposes of this part.(3) Paragraphs (2) and (3) of subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply to an ineligible entity.(c) For purposes of this section:(1) Ineligible entity means a taxpayer that either:(A) Is a publicly-traded company.(B) Does not meet the reduction from the gross receipts requirements of Section 636(a)(37)(A)(iv)(bb) of Title 15 of the United States Code, as added by Section 311 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(2) Publicly-traded company means a publicly-traded entity as described in Section 342 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(d) This section shall be operative for taxable years beginning on or after January 1, 2019.SEC. 3. For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17158.3 and 24308.3 of the Revenue and Taxation Code as added by this act (hereafter the deductions, exclusions, tax basis, and other attributes), the Legislature finds and declares all of the following:(a) The specific goal, purpose, and objective that the deductions, exclusions, tax basis, and other attributes will achieve is to provide assistance to shuttered venues operating in the state that have been harmed economically by the COVID-19 pandemic.(b) Detailed performance indicators for the Legislature to use in determining whether the deductions, exclusions, tax basis, and other attributes meet the goal, purpose, and objective described in subdivision (a) is the extent to which the businesses that received a shuttered venue operator grant and subsequently used the deductions, exclusions, tax basis, and other attributes reflect the industries, regions, and businesses by type of ownership that were most substantially harmed by the COVID-19 pandemic, and whether any particular industries, regions, or businesses by type of ownership in the business community were not able to receive a shuttered venue operator grant and the deductions, exclusions, tax basis, and other attributes.(c) The Legislative Analysts Office shall collaborate with the Franchise Tax Board, as well as reviewing other publicly available data, to analyze whether the shuttered venue operator grants and the tax benefits of the deductions, exclusions, tax basis, and other attributes were distributed evenly over industries, regions, and businesses by type of ownership harmed by the COVID-19 pandemic and report by January 1, 2024, and in compliance with Section 9795 of the Government Code, to the Legislature.(d) The data collection requirements for determining whether the deductions, exclusions, tax basis, and other attributes meet, or fail to meet, the specific goal, purpose, and objective described in subdivision (a) are:(1) To assist the Legislature in determining whether the deductions, exclusions, tax basis, and other attributes meet the specific goal, purpose, and objective described in subdivision (a), and in order to carry out its duties pursuant to subdivision (c), the Legislative Analysts Office may request information from the Franchise Tax Board.(2) (A) The Franchise Tax Board shall provide any available data requested by the Legislative Analysts Office pursuant to this subdivision.(B) The disclosure provisions of this paragraph shall be treated as an exception to Section 19542 under Article 2 (commencing with Section 19542) of Chapter 7 of Part 10.2 of Division 2 of the Revenue and Taxation Code.SEC. 4. The Legislature hereby finds and declares that the deductions and other tax benefits authorized by Sections 17158.3 and 24308.3 of the Revenue and Taxation Code made by this bill serve the public purpose of securing the financial condition of businesses that were economically harmed by the COVID-19 pandemic and do not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.SEC. 5. 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, much needed tax relief in conformity with federal tax relief enacted due to the COVID-19 pandemic and to assist California businesses struggling under the economic strain thereof, it is necessary that this act go into immediate effect.
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33 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 1612Introduced by Assembly Member BurkeJanuary 05, 2022 An act to add Sections 17158.3 and 24308.3 to the Revenue and Taxation Code, relating to taxation, and declaring the urgency thereof, to take effect immediately. LEGISLATIVE COUNSEL'S DIGESTAB 1612, as introduced, Burke. Taxation: Federal Consolidated Appropriations Act, 2021: Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act: shuttered venue operator grants.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, and provide various exclusions from gross income. 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 Hard-Hit Small Businesses, Nonprofits, and Venues Act, among other things, awards grants to eligible shuttered venue operators, including live venue operators or promoters, theatrical producers, and live performing arts organization operators. Existing federal law excludes from gross income for purposes of federal income taxes any amount received in the form of a shuttered venue operator grant, as specified. Existing federal law prohibits reductions in tax deductions, reductions in tax attributes, and denials of basis adjustments, for federal income tax purposes based on that exclusion.This bill, for taxable years beginning on or after January 1, 2019, and in conformity with federal law, would exclude from gross income any amount received in the form of a federal shuttered venue operator grant. The bill would adopt, except as provided, the provisions of the federal Consolidated Appropriations Act, 2021, prohibiting any reduction in tax deductions, reductions in tax attributes, and denials of basis adjustments based on the exclusion from gross income, as provided.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
1010
1111 Assembly Bill
1212
1313 No. 1612
1414
1515 Introduced by Assembly Member BurkeJanuary 05, 2022
1616
1717 Introduced by Assembly Member Burke
1818 January 05, 2022
1919
2020 An act to add Sections 17158.3 and 24308.3 to the Revenue and Taxation Code, relating to taxation, and declaring the urgency thereof, to take effect immediately.
2121
2222 LEGISLATIVE COUNSEL'S DIGEST
2323
2424 ## LEGISLATIVE COUNSEL'S DIGEST
2525
2626 AB 1612, as introduced, Burke. Taxation: Federal Consolidated Appropriations Act, 2021: Economic Aid to Hard-Hit Small Businesses, Nonprofits, and Venues Act: shuttered venue operator grants.
2727
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, and provide various exclusions from gross income. 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 Hard-Hit Small Businesses, Nonprofits, and Venues Act, among other things, awards grants to eligible shuttered venue operators, including live venue operators or promoters, theatrical producers, and live performing arts organization operators. Existing federal law excludes from gross income for purposes of federal income taxes any amount received in the form of a shuttered venue operator grant, as specified. Existing federal law prohibits reductions in tax deductions, reductions in tax attributes, and denials of basis adjustments, for federal income tax purposes based on that exclusion.This bill, for taxable years beginning on or after January 1, 2019, and in conformity with federal law, would exclude from gross income any amount received in the form of a federal shuttered venue operator grant. The bill would adopt, except as provided, the provisions of the federal Consolidated Appropriations Act, 2021, prohibiting any reduction in tax deductions, reductions in tax attributes, and denials of basis adjustments based on the exclusion from gross income, as provided.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.
2929
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, and provide various exclusions from gross income. 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.
3131
3232 Existing federal law, the Hard-Hit Small Businesses, Nonprofits, and Venues Act, among other things, awards grants to eligible shuttered venue operators, including live venue operators or promoters, theatrical producers, and live performing arts organization operators. Existing federal law excludes from gross income for purposes of federal income taxes any amount received in the form of a shuttered venue operator grant, as specified. Existing federal law prohibits reductions in tax deductions, reductions in tax attributes, and denials of basis adjustments, for federal income tax purposes based on that exclusion.
3333
3434 This bill, for taxable years beginning on or after January 1, 2019, and in conformity with federal law, would exclude from gross income any amount received in the form of a federal shuttered venue operator grant. The bill would adopt, except as provided, the provisions of the federal Consolidated Appropriations Act, 2021, prohibiting any reduction in tax deductions, reductions in tax attributes, and denials of basis adjustments based on the exclusion from gross income, as provided.
3535
3636 This bill would provide findings to comply with the additional information requirement for any bill authorizing a new tax expenditure.
3737
3838 This bill would also make findings and declarations related to a gift of public funds.
3939
4040 This bill would declare that it is to take effect immediately as an urgency statute.
4141
4242 ## Digest Key
4343
4444 ## Bill Text
4545
4646 The people of the State of California do enact as follows:SECTION 1. Section 17158.3 is added to the Revenue and Taxation Code, to read:17158.3. (a) For taxable years beginning on or after January 1, 2019, gross income does not include any amount awarded as a shuttered venue operator grant pursuant to Section 9009a of Title 15 of the United States Code.(b) (1) Notwithstanding Section 17280, for taxable years beginning on or after January 1, 2019, subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided.(2) Subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase For purposes of the Internal Revenue Code of 1986 with For purposes of this part.(3) Paragraphs (2) and (3) of subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply to an ineligible entity.(c) For purposes of this section: (1) Ineligible entity means a taxpayer that either:(A) Is a publicly-traded company.(B) Does not meet the reduction from the gross receipts requirements of Section 636(a)(37)(A)(iv)(bb) of Title 15 of the United States Code, as added by Section 311 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(2) Publicly-traded company means a publicly-traded entity as described in Section 342 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(d) This section shall be operative for taxable years beginning on or after January 1, 2019.SEC. 2. Section 24308.3 is added to the Revenue and Taxation Code, to read:24308.3. (a) For taxable years beginning on or after January 1, 2019, gross income does not include any amount awarded as a shuttered venue operator grant pursuant to Section 9009a of Title 15 of the United States Code.(b) (1) Notwithstanding Section 24425, for taxable years beginning on or after January 1, 2019, subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided.(2) Subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase For purposes of the Internal Revenue Code of 1986 with For purposes of this part.(3) Paragraphs (2) and (3) of subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply to an ineligible entity.(c) For purposes of this section:(1) Ineligible entity means a taxpayer that either:(A) Is a publicly-traded company.(B) Does not meet the reduction from the gross receipts requirements of Section 636(a)(37)(A)(iv)(bb) of Title 15 of the United States Code, as added by Section 311 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(2) Publicly-traded company means a publicly-traded entity as described in Section 342 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(d) This section shall be operative for taxable years beginning on or after January 1, 2019.SEC. 3. For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17158.3 and 24308.3 of the Revenue and Taxation Code as added by this act (hereafter the deductions, exclusions, tax basis, and other attributes), the Legislature finds and declares all of the following:(a) The specific goal, purpose, and objective that the deductions, exclusions, tax basis, and other attributes will achieve is to provide assistance to shuttered venues operating in the state that have been harmed economically by the COVID-19 pandemic.(b) Detailed performance indicators for the Legislature to use in determining whether the deductions, exclusions, tax basis, and other attributes meet the goal, purpose, and objective described in subdivision (a) is the extent to which the businesses that received a shuttered venue operator grant and subsequently used the deductions, exclusions, tax basis, and other attributes reflect the industries, regions, and businesses by type of ownership that were most substantially harmed by the COVID-19 pandemic, and whether any particular industries, regions, or businesses by type of ownership in the business community were not able to receive a shuttered venue operator grant and the deductions, exclusions, tax basis, and other attributes.(c) The Legislative Analysts Office shall collaborate with the Franchise Tax Board, as well as reviewing other publicly available data, to analyze whether the shuttered venue operator grants and the tax benefits of the deductions, exclusions, tax basis, and other attributes were distributed evenly over industries, regions, and businesses by type of ownership harmed by the COVID-19 pandemic and report by January 1, 2024, and in compliance with Section 9795 of the Government Code, to the Legislature.(d) The data collection requirements for determining whether the deductions, exclusions, tax basis, and other attributes meet, or fail to meet, the specific goal, purpose, and objective described in subdivision (a) are:(1) To assist the Legislature in determining whether the deductions, exclusions, tax basis, and other attributes meet the specific goal, purpose, and objective described in subdivision (a), and in order to carry out its duties pursuant to subdivision (c), the Legislative Analysts Office may request information from the Franchise Tax Board.(2) (A) The Franchise Tax Board shall provide any available data requested by the Legislative Analysts Office pursuant to this subdivision.(B) The disclosure provisions of this paragraph shall be treated as an exception to Section 19542 under Article 2 (commencing with Section 19542) of Chapter 7 of Part 10.2 of Division 2 of the Revenue and Taxation Code.SEC. 4. The Legislature hereby finds and declares that the deductions and other tax benefits authorized by Sections 17158.3 and 24308.3 of the Revenue and Taxation Code made by this bill serve the public purpose of securing the financial condition of businesses that were economically harmed by the COVID-19 pandemic and do not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.SEC. 5. 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, much needed tax relief in conformity with federal tax relief enacted due to the COVID-19 pandemic and to assist California businesses struggling under the economic strain thereof, it is necessary that this act go into immediate effect.
4747
4848 The people of the State of California do enact as follows:
4949
5050 ## The people of the State of California do enact as follows:
5151
5252 SECTION 1. Section 17158.3 is added to the Revenue and Taxation Code, to read:17158.3. (a) For taxable years beginning on or after January 1, 2019, gross income does not include any amount awarded as a shuttered venue operator grant pursuant to Section 9009a of Title 15 of the United States Code.(b) (1) Notwithstanding Section 17280, for taxable years beginning on or after January 1, 2019, subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided.(2) Subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase For purposes of the Internal Revenue Code of 1986 with For purposes of this part.(3) Paragraphs (2) and (3) of subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply to an ineligible entity.(c) For purposes of this section: (1) Ineligible entity means a taxpayer that either:(A) Is a publicly-traded company.(B) Does not meet the reduction from the gross receipts requirements of Section 636(a)(37)(A)(iv)(bb) of Title 15 of the United States Code, as added by Section 311 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(2) Publicly-traded company means a publicly-traded entity as described in Section 342 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(d) This section shall be operative for taxable years beginning on or after January 1, 2019.
5353
5454 SECTION 1. Section 17158.3 is added to the Revenue and Taxation Code, to read:
5555
5656 ### SECTION 1.
5757
5858 17158.3. (a) For taxable years beginning on or after January 1, 2019, gross income does not include any amount awarded as a shuttered venue operator grant pursuant to Section 9009a of Title 15 of the United States Code.(b) (1) Notwithstanding Section 17280, for taxable years beginning on or after January 1, 2019, subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided.(2) Subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase For purposes of the Internal Revenue Code of 1986 with For purposes of this part.(3) Paragraphs (2) and (3) of subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply to an ineligible entity.(c) For purposes of this section: (1) Ineligible entity means a taxpayer that either:(A) Is a publicly-traded company.(B) Does not meet the reduction from the gross receipts requirements of Section 636(a)(37)(A)(iv)(bb) of Title 15 of the United States Code, as added by Section 311 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(2) Publicly-traded company means a publicly-traded entity as described in Section 342 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(d) This section shall be operative for taxable years beginning on or after January 1, 2019.
5959
6060 17158.3. (a) For taxable years beginning on or after January 1, 2019, gross income does not include any amount awarded as a shuttered venue operator grant pursuant to Section 9009a of Title 15 of the United States Code.(b) (1) Notwithstanding Section 17280, for taxable years beginning on or after January 1, 2019, subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided.(2) Subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase For purposes of the Internal Revenue Code of 1986 with For purposes of this part.(3) Paragraphs (2) and (3) of subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply to an ineligible entity.(c) For purposes of this section: (1) Ineligible entity means a taxpayer that either:(A) Is a publicly-traded company.(B) Does not meet the reduction from the gross receipts requirements of Section 636(a)(37)(A)(iv)(bb) of Title 15 of the United States Code, as added by Section 311 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(2) Publicly-traded company means a publicly-traded entity as described in Section 342 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(d) This section shall be operative for taxable years beginning on or after January 1, 2019.
6161
6262 17158.3. (a) For taxable years beginning on or after January 1, 2019, gross income does not include any amount awarded as a shuttered venue operator grant pursuant to Section 9009a of Title 15 of the United States Code.(b) (1) Notwithstanding Section 17280, for taxable years beginning on or after January 1, 2019, subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided.(2) Subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase For purposes of the Internal Revenue Code of 1986 with For purposes of this part.(3) Paragraphs (2) and (3) of subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply to an ineligible entity.(c) For purposes of this section: (1) Ineligible entity means a taxpayer that either:(A) Is a publicly-traded company.(B) Does not meet the reduction from the gross receipts requirements of Section 636(a)(37)(A)(iv)(bb) of Title 15 of the United States Code, as added by Section 311 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(2) Publicly-traded company means a publicly-traded entity as described in Section 342 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(d) This section shall be operative for taxable years beginning on or after January 1, 2019.
6363
6464
6565
6666 17158.3. (a) For taxable years beginning on or after January 1, 2019, gross income does not include any amount awarded as a shuttered venue operator grant pursuant to Section 9009a of Title 15 of the United States Code.
6767
6868 (b) (1) Notwithstanding Section 17280, for taxable years beginning on or after January 1, 2019, subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided.
6969
7070 (2) Subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase For purposes of the Internal Revenue Code of 1986 with For purposes of this part.
7171
7272 (3) Paragraphs (2) and (3) of subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply to an ineligible entity.
7373
7474 (c) For purposes of this section:
7575
7676 (1) Ineligible entity means a taxpayer that either:
7777
7878 (A) Is a publicly-traded company.
7979
8080 (B) Does not meet the reduction from the gross receipts requirements of Section 636(a)(37)(A)(iv)(bb) of Title 15 of the United States Code, as added by Section 311 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).
8181
8282 (2) Publicly-traded company means a publicly-traded entity as described in Section 342 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).
8383
8484 (d) This section shall be operative for taxable years beginning on or after January 1, 2019.
8585
8686 SEC. 2. Section 24308.3 is added to the Revenue and Taxation Code, to read:24308.3. (a) For taxable years beginning on or after January 1, 2019, gross income does not include any amount awarded as a shuttered venue operator grant pursuant to Section 9009a of Title 15 of the United States Code.(b) (1) Notwithstanding Section 24425, for taxable years beginning on or after January 1, 2019, subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided.(2) Subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase For purposes of the Internal Revenue Code of 1986 with For purposes of this part.(3) Paragraphs (2) and (3) of subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply to an ineligible entity.(c) For purposes of this section:(1) Ineligible entity means a taxpayer that either:(A) Is a publicly-traded company.(B) Does not meet the reduction from the gross receipts requirements of Section 636(a)(37)(A)(iv)(bb) of Title 15 of the United States Code, as added by Section 311 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(2) Publicly-traded company means a publicly-traded entity as described in Section 342 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(d) This section shall be operative for taxable years beginning on or after January 1, 2019.
8787
8888 SEC. 2. Section 24308.3 is added to the Revenue and Taxation Code, to read:
8989
9090 ### SEC. 2.
9191
9292 24308.3. (a) For taxable years beginning on or after January 1, 2019, gross income does not include any amount awarded as a shuttered venue operator grant pursuant to Section 9009a of Title 15 of the United States Code.(b) (1) Notwithstanding Section 24425, for taxable years beginning on or after January 1, 2019, subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided.(2) Subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase For purposes of the Internal Revenue Code of 1986 with For purposes of this part.(3) Paragraphs (2) and (3) of subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply to an ineligible entity.(c) For purposes of this section:(1) Ineligible entity means a taxpayer that either:(A) Is a publicly-traded company.(B) Does not meet the reduction from the gross receipts requirements of Section 636(a)(37)(A)(iv)(bb) of Title 15 of the United States Code, as added by Section 311 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(2) Publicly-traded company means a publicly-traded entity as described in Section 342 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(d) This section shall be operative for taxable years beginning on or after January 1, 2019.
9393
9494 24308.3. (a) For taxable years beginning on or after January 1, 2019, gross income does not include any amount awarded as a shuttered venue operator grant pursuant to Section 9009a of Title 15 of the United States Code.(b) (1) Notwithstanding Section 24425, for taxable years beginning on or after January 1, 2019, subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided.(2) Subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase For purposes of the Internal Revenue Code of 1986 with For purposes of this part.(3) Paragraphs (2) and (3) of subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply to an ineligible entity.(c) For purposes of this section:(1) Ineligible entity means a taxpayer that either:(A) Is a publicly-traded company.(B) Does not meet the reduction from the gross receipts requirements of Section 636(a)(37)(A)(iv)(bb) of Title 15 of the United States Code, as added by Section 311 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(2) Publicly-traded company means a publicly-traded entity as described in Section 342 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(d) This section shall be operative for taxable years beginning on or after January 1, 2019.
9595
9696 24308.3. (a) For taxable years beginning on or after January 1, 2019, gross income does not include any amount awarded as a shuttered venue operator grant pursuant to Section 9009a of Title 15 of the United States Code.(b) (1) Notwithstanding Section 24425, for taxable years beginning on or after January 1, 2019, subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided.(2) Subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase For purposes of the Internal Revenue Code of 1986 with For purposes of this part.(3) Paragraphs (2) and (3) of subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply to an ineligible entity.(c) For purposes of this section:(1) Ineligible entity means a taxpayer that either:(A) Is a publicly-traded company.(B) Does not meet the reduction from the gross receipts requirements of Section 636(a)(37)(A)(iv)(bb) of Title 15 of the United States Code, as added by Section 311 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(2) Publicly-traded company means a publicly-traded entity as described in Section 342 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).(d) This section shall be operative for taxable years beginning on or after January 1, 2019.
9797
9898
9999
100100 24308.3. (a) For taxable years beginning on or after January 1, 2019, gross income does not include any amount awarded as a shuttered venue operator grant pursuant to Section 9009a of Title 15 of the United States Code.
101101
102102 (b) (1) Notwithstanding Section 24425, for taxable years beginning on or after January 1, 2019, subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall apply, except as provided.
103103
104104 (2) Subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) is modified by substituting the phrase For purposes of the Internal Revenue Code of 1986 with For purposes of this part.
105105
106106 (3) Paragraphs (2) and (3) of subsection (d) of Section 278 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260) shall not apply to an ineligible entity.
107107
108108 (c) For purposes of this section:
109109
110110 (1) Ineligible entity means a taxpayer that either:
111111
112112 (A) Is a publicly-traded company.
113113
114114 (B) Does not meet the reduction from the gross receipts requirements of Section 636(a)(37)(A)(iv)(bb) of Title 15 of the United States Code, as added by Section 311 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).
115115
116116 (2) Publicly-traded company means a publicly-traded entity as described in Section 342 of Division N of the Consolidated Appropriations Act, 2021 (Public Law 116-260).
117117
118118 (d) This section shall be operative for taxable years beginning on or after January 1, 2019.
119119
120120 SEC. 3. For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17158.3 and 24308.3 of the Revenue and Taxation Code as added by this act (hereafter the deductions, exclusions, tax basis, and other attributes), the Legislature finds and declares all of the following:(a) The specific goal, purpose, and objective that the deductions, exclusions, tax basis, and other attributes will achieve is to provide assistance to shuttered venues operating in the state that have been harmed economically by the COVID-19 pandemic.(b) Detailed performance indicators for the Legislature to use in determining whether the deductions, exclusions, tax basis, and other attributes meet the goal, purpose, and objective described in subdivision (a) is the extent to which the businesses that received a shuttered venue operator grant and subsequently used the deductions, exclusions, tax basis, and other attributes reflect the industries, regions, and businesses by type of ownership that were most substantially harmed by the COVID-19 pandemic, and whether any particular industries, regions, or businesses by type of ownership in the business community were not able to receive a shuttered venue operator grant and the deductions, exclusions, tax basis, and other attributes.(c) The Legislative Analysts Office shall collaborate with the Franchise Tax Board, as well as reviewing other publicly available data, to analyze whether the shuttered venue operator grants and the tax benefits of the deductions, exclusions, tax basis, and other attributes were distributed evenly over industries, regions, and businesses by type of ownership harmed by the COVID-19 pandemic and report by January 1, 2024, and in compliance with Section 9795 of the Government Code, to the Legislature.(d) The data collection requirements for determining whether the deductions, exclusions, tax basis, and other attributes meet, or fail to meet, the specific goal, purpose, and objective described in subdivision (a) are:(1) To assist the Legislature in determining whether the deductions, exclusions, tax basis, and other attributes meet the specific goal, purpose, and objective described in subdivision (a), and in order to carry out its duties pursuant to subdivision (c), the Legislative Analysts Office may request information from the Franchise Tax Board.(2) (A) The Franchise Tax Board shall provide any available data requested by the Legislative Analysts Office pursuant to this subdivision.(B) The disclosure provisions of this paragraph shall be treated as an exception to Section 19542 under Article 2 (commencing with Section 19542) of Chapter 7 of Part 10.2 of Division 2 of the Revenue and Taxation Code.
121121
122122 SEC. 3. For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17158.3 and 24308.3 of the Revenue and Taxation Code as added by this act (hereafter the deductions, exclusions, tax basis, and other attributes), the Legislature finds and declares all of the following:(a) The specific goal, purpose, and objective that the deductions, exclusions, tax basis, and other attributes will achieve is to provide assistance to shuttered venues operating in the state that have been harmed economically by the COVID-19 pandemic.(b) Detailed performance indicators for the Legislature to use in determining whether the deductions, exclusions, tax basis, and other attributes meet the goal, purpose, and objective described in subdivision (a) is the extent to which the businesses that received a shuttered venue operator grant and subsequently used the deductions, exclusions, tax basis, and other attributes reflect the industries, regions, and businesses by type of ownership that were most substantially harmed by the COVID-19 pandemic, and whether any particular industries, regions, or businesses by type of ownership in the business community were not able to receive a shuttered venue operator grant and the deductions, exclusions, tax basis, and other attributes.(c) The Legislative Analysts Office shall collaborate with the Franchise Tax Board, as well as reviewing other publicly available data, to analyze whether the shuttered venue operator grants and the tax benefits of the deductions, exclusions, tax basis, and other attributes were distributed evenly over industries, regions, and businesses by type of ownership harmed by the COVID-19 pandemic and report by January 1, 2024, and in compliance with Section 9795 of the Government Code, to the Legislature.(d) The data collection requirements for determining whether the deductions, exclusions, tax basis, and other attributes meet, or fail to meet, the specific goal, purpose, and objective described in subdivision (a) are:(1) To assist the Legislature in determining whether the deductions, exclusions, tax basis, and other attributes meet the specific goal, purpose, and objective described in subdivision (a), and in order to carry out its duties pursuant to subdivision (c), the Legislative Analysts Office may request information from the Franchise Tax Board.(2) (A) The Franchise Tax Board shall provide any available data requested by the Legislative Analysts Office pursuant to this subdivision.(B) The disclosure provisions of this paragraph shall be treated as an exception to Section 19542 under Article 2 (commencing with Section 19542) of Chapter 7 of Part 10.2 of Division 2 of the Revenue and Taxation Code.
123123
124124 SEC. 3. For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17158.3 and 24308.3 of the Revenue and Taxation Code as added by this act (hereafter the deductions, exclusions, tax basis, and other attributes), the Legislature finds and declares all of the following:
125125
126126 ### SEC. 3.
127127
128128 (a) The specific goal, purpose, and objective that the deductions, exclusions, tax basis, and other attributes will achieve is to provide assistance to shuttered venues operating in the state that have been harmed economically by the COVID-19 pandemic.
129129
130130 (b) Detailed performance indicators for the Legislature to use in determining whether the deductions, exclusions, tax basis, and other attributes meet the goal, purpose, and objective described in subdivision (a) is the extent to which the businesses that received a shuttered venue operator grant and subsequently used the deductions, exclusions, tax basis, and other attributes reflect the industries, regions, and businesses by type of ownership that were most substantially harmed by the COVID-19 pandemic, and whether any particular industries, regions, or businesses by type of ownership in the business community were not able to receive a shuttered venue operator grant and the deductions, exclusions, tax basis, and other attributes.
131131
132132 (c) The Legislative Analysts Office shall collaborate with the Franchise Tax Board, as well as reviewing other publicly available data, to analyze whether the shuttered venue operator grants and the tax benefits of the deductions, exclusions, tax basis, and other attributes were distributed evenly over industries, regions, and businesses by type of ownership harmed by the COVID-19 pandemic and report by January 1, 2024, and in compliance with Section 9795 of the Government Code, to the Legislature.
133133
134134 (d) The data collection requirements for determining whether the deductions, exclusions, tax basis, and other attributes meet, or fail to meet, the specific goal, purpose, and objective described in subdivision (a) are:
135135
136136 (1) To assist the Legislature in determining whether the deductions, exclusions, tax basis, and other attributes meet the specific goal, purpose, and objective described in subdivision (a), and in order to carry out its duties pursuant to subdivision (c), the Legislative Analysts Office may request information from the Franchise Tax Board.
137137
138138 (2) (A) The Franchise Tax Board shall provide any available data requested by the Legislative Analysts Office pursuant to this subdivision.
139139
140140 (B) The disclosure provisions of this paragraph shall be treated as an exception to Section 19542 under Article 2 (commencing with Section 19542) of Chapter 7 of Part 10.2 of Division 2 of the Revenue and Taxation Code.
141141
142142 SEC. 4. The Legislature hereby finds and declares that the deductions and other tax benefits authorized by Sections 17158.3 and 24308.3 of the Revenue and Taxation Code made by this bill serve the public purpose of securing the financial condition of businesses that were economically harmed by the COVID-19 pandemic and do not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.
143143
144144 SEC. 4. The Legislature hereby finds and declares that the deductions and other tax benefits authorized by Sections 17158.3 and 24308.3 of the Revenue and Taxation Code made by this bill serve the public purpose of securing the financial condition of businesses that were economically harmed by the COVID-19 pandemic and do not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.
145145
146146 SEC. 4. The Legislature hereby finds and declares that the deductions and other tax benefits authorized by Sections 17158.3 and 24308.3 of the Revenue and Taxation Code made by this bill serve the public purpose of securing the financial condition of businesses that were economically harmed by the COVID-19 pandemic and do not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.
147147
148148 ### SEC. 4.
149149
150150 SEC. 5. 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, much needed tax relief in conformity with federal tax relief enacted due to the COVID-19 pandemic and to assist California businesses struggling under the economic strain thereof, it is necessary that this act go into immediate effect.
151151
152152 SEC. 5. 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, much needed tax relief in conformity with federal tax relief enacted due to the COVID-19 pandemic and to assist California businesses struggling under the economic strain thereof, it is necessary that this act go into immediate effect.
153153
154154 SEC. 5. 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:
155155
156156 ### SEC. 5.
157157
158158 In order to provide, as soon as possible, much needed tax relief in conformity with federal tax relief enacted due to the COVID-19 pandemic and to assist California businesses struggling under the economic strain thereof, it is necessary that this act go into immediate effect.