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California Assembly Bill AB708

California 2021-2022 Regular Session

California Assembly Bill AB708 Compare Versions

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11 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 708Introduced by Assembly Member Eduardo GarciaFebruary 16, 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 708, as introduced, Eduardo Garcia. Personal Income Taxes: Corporation Taxes: gross income: Federal Consolidated Appropriations Act, 2021.The Personal Income Tax Law and the Corporation Tax Law, in conformity with federal income tax law, generally defines 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 the 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 conformity with the federal CARES Act and its subsequent amendments. The 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 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).(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) For purposes of this part, the provisions of Section 276 of the federal Consolidated Appropriations Act, 2021 (Public Law 116-260), clarifying the tax treatment of forgiveness of covered loans, shall apply.(c) 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).SEC. 2. Section 24308.6 of the Revenue and Taxation Code is amended to read:24308.6. (a) For taxable years beginning on and 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).(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) For purposes of this part, the provisions of Section 276 of the federal Consolidated Appropriations Act, 2021 (Public Law 116-260), clarifying the tax treatment of forgiveness of covered loans, shall apply.(c) 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).SEC. 3. For purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares the following: the purposes, goals, and objectives of the new tax expenditure created by this bill are to conform with federal tax law for state tax purposes in order to support small businesses who suffered economic harm due to the COVID-19 pandemic.SEC. 4. 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 conforming with federal tax law for state tax purposes in order to support small and essential businesses who suffered economic harm due to 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 immediately support small and essential businesses who suffered economic harm due to the COVID-19 pandemic by maximizing the benefit of the Paycheck Protections Program loans as soon as possible, it is necessary that this measure take effect immediately.
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33 CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 708Introduced by Assembly Member Eduardo GarciaFebruary 16, 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 708, as introduced, Eduardo Garcia. Personal Income Taxes: Corporation Taxes: gross income: Federal Consolidated Appropriations Act, 2021.The Personal Income Tax Law and the Corporation Tax Law, in conformity with federal income tax law, generally defines 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 the 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 conformity with the federal CARES Act and its subsequent amendments. The 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. 708
1414
1515 Introduced by Assembly Member Eduardo GarciaFebruary 16, 2021
1616
1717 Introduced by Assembly Member Eduardo Garcia
1818 February 16, 2021
1919
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.
2121
2222 LEGISLATIVE COUNSEL'S DIGEST
2323
2424 ## LEGISLATIVE COUNSEL'S DIGEST
2525
2626 AB 708, as introduced, Eduardo Garcia. Personal Income Taxes: Corporation Taxes: gross income: Federal Consolidated Appropriations Act, 2021.
2727
2828 The Personal Income Tax Law and the Corporation Tax Law, in conformity with federal income tax law, generally defines 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 the 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 conformity with the federal CARES Act and its subsequent amendments. The 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 defines 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.
3131
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.
3333
3434 This bill would adopt the 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 conformity with the federal CARES Act and its subsequent amendments. The bill would provide findings to comply with the additional information requirement for any bill authorizing a new tax expenditure.
3535
3636 This bill would also make findings and declarations related to a gift of public funds.
3737
3838 This bill would declare that it is to take effect immediately as an urgency statute.
3939
4040 ## Digest Key
4141
4242 ## Bill Text
4343
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 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).(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) For purposes of this part, the provisions of Section 276 of the federal Consolidated Appropriations Act, 2021 (Public Law 116-260), clarifying the tax treatment of forgiveness of covered loans, shall apply.(c) 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).SEC. 2. Section 24308.6 of the Revenue and Taxation Code is amended to read:24308.6. (a) For taxable years beginning on and 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).(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) For purposes of this part, the provisions of Section 276 of the federal Consolidated Appropriations Act, 2021 (Public Law 116-260), clarifying the tax treatment of forgiveness of covered loans, shall apply.(c) 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).SEC. 3. For purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares the following: the purposes, goals, and objectives of the new tax expenditure created by this bill are to conform with federal tax law for state tax purposes in order to support small businesses who suffered economic harm due to the COVID-19 pandemic.SEC. 4. 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 conforming with federal tax law for state tax purposes in order to support small and essential businesses who suffered economic harm due to 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 immediately support small and essential businesses who suffered economic harm due to the COVID-19 pandemic by maximizing the benefit of the Paycheck Protections Program loans as soon as possible, it is necessary that this measure take effect immediately.
4545
4646 The people of the State of California do enact as follows:
4747
4848 ## The people of the State of California do enact as follows:
4949
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 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).(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) For purposes of this part, the provisions of Section 276 of the federal Consolidated Appropriations Act, 2021 (Public Law 116-260), clarifying the tax treatment of forgiveness of covered loans, shall apply.(c) 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).
5151
5252 SECTION 1. Section 17131.8 of the Revenue and Taxation Code is amended to read:
5353
5454 ### SECTION 1.
5555
5656 17131.8. (a) For taxable years beginning on and 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).(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) For purposes of this part, the provisions of Section 276 of the federal Consolidated Appropriations Act, 2021 (Public Law 116-260), clarifying the tax treatment of forgiveness of covered loans, shall apply.(c) 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).
5757
5858 17131.8. (a) For taxable years beginning on and 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).(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) For purposes of this part, the provisions of Section 276 of the federal Consolidated Appropriations Act, 2021 (Public Law 116-260), clarifying the tax treatment of forgiveness of covered loans, shall apply.(c) 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).
5959
6060 17131.8. (a) For taxable years beginning on and 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).(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) For purposes of this part, the provisions of Section 276 of the federal Consolidated Appropriations Act, 2021 (Public Law 116-260), clarifying the tax treatment of forgiveness of covered loans, shall apply.(c) 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).
6161
6262
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6464 17131.8. (a) For taxable years beginning on and 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).
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) For purposes of this part, the provisions of Section 276 of the federal Consolidated Appropriations Act, 2021 (Public Law 116-260), clarifying the tax treatment of forgiveness of covered loans, shall apply.
7171
7272 (c) 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).
7373
7474 SEC. 2. Section 24308.6 of the Revenue and Taxation Code is amended to read:24308.6. (a) For taxable years beginning on and 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).(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) For purposes of this part, the provisions of Section 276 of the federal Consolidated Appropriations Act, 2021 (Public Law 116-260), clarifying the tax treatment of forgiveness of covered loans, shall apply.(c) 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).
7575
7676 SEC. 2. Section 24308.6 of the Revenue and Taxation Code is amended to read:
7777
7878 ### SEC. 2.
7979
8080 24308.6. (a) For taxable years beginning on and 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).(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) For purposes of this part, the provisions of Section 276 of the federal Consolidated Appropriations Act, 2021 (Public Law 116-260), clarifying the tax treatment of forgiveness of covered loans, shall apply.(c) 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).
8181
8282 24308.6. (a) For taxable years beginning on and 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).(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) For purposes of this part, the provisions of Section 276 of the federal Consolidated Appropriations Act, 2021 (Public Law 116-260), clarifying the tax treatment of forgiveness of covered loans, shall apply.(c) 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).
8383
8484 24308.6. (a) For taxable years beginning on and 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).(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) For purposes of this part, the provisions of Section 276 of the federal Consolidated Appropriations Act, 2021 (Public Law 116-260), clarifying the tax treatment of forgiveness of covered loans, shall apply.(c) 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).
8585
8686
8787
8888 24308.6. (a) For taxable years beginning on and 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).
8989
9090 (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.
9191
9292
9393
9494 (b) For purposes of this part, the provisions of Section 276 of the federal Consolidated Appropriations Act, 2021 (Public Law 116-260), clarifying the tax treatment of forgiveness of covered loans, shall apply.
9595
9696 (c) 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).
9797
9898 SEC. 3. For purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares the following: the purposes, goals, and objectives of the new tax expenditure created by this bill are to conform with federal tax law for state tax purposes in order to support small businesses who suffered economic harm due to the COVID-19 pandemic.
9999
100100 SEC. 3. For purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares the following: the purposes, goals, and objectives of the new tax expenditure created by this bill are to conform with federal tax law for state tax purposes in order to support small businesses who suffered economic harm due to the COVID-19 pandemic.
101101
102102 SEC. 3. For purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares the following: the purposes, goals, and objectives of the new tax expenditure created by this bill are to conform with federal tax law for state tax purposes in order to support small businesses who suffered economic harm due to the COVID-19 pandemic.
103103
104104 ### SEC. 3.
105105
106106 SEC. 4. 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 conforming with federal tax law for state tax purposes in order to support small and essential businesses who suffered economic harm due to 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.
107107
108108 SEC. 4. 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 conforming with federal tax law for state tax purposes in order to support small and essential businesses who suffered economic harm due to 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.
109109
110110 SEC. 4. 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 conforming with federal tax law for state tax purposes in order to support small and essential businesses who suffered economic harm due to 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.
111111
112112 ### SEC. 4.
113113
114114 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 immediately support small and essential businesses who suffered economic harm due to the COVID-19 pandemic by maximizing the benefit of the Paycheck Protections Program loans as soon as possible, it is necessary that this measure take effect immediately.
115115
116116 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 immediately support small and essential businesses who suffered economic harm due to the COVID-19 pandemic by maximizing the benefit of the Paycheck Protections Program loans as soon as possible, it is necessary that this measure take effect immediately.
117117
118118 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:
119119
120120 ### SEC. 5.
121121
122122 In order to immediately support small and essential businesses who suffered economic harm due to the COVID-19 pandemic by maximizing the benefit of the Paycheck Protections Program loans as soon as possible, it is necessary that this measure take effect immediately.