| 1 | 1 | | CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 994Introduced by Assembly Member Patterson(Coauthors: Assembly Members Chen, Choi, Davies, Fong, Gallagher, Cristina Garcia, Kiley, Lackey, Mathis, ODonnell, Ramos, Seyarto, Smith, Valladares, and Voepel)(Coauthors: Senators Hurtado and Wilk)February 18, 2021 An act to add Sections 17131.12 and 24313 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTAB 994, as introduced, Patterson. Income taxation: exclusion: California Small Business COVID-19 Relief Grant Program.The Personal Income Tax Law and the Corporation Tax Law, in modified conformity with federal law, generally define gross income as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income for purposes of computing tax liability. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.This bill, for taxable years beginning on or after January 1, 2021, and before January 1, 2026, would exclude, under both laws, from gross income the amount of a grant awarded pursuant to the California Small Business COVID-19 Relief Grant Program.This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 17131.12 is added to the Revenue and Taxation Code, to read:17131.12. For taxable years beginning on or after January 1, 2021, and before January 1, 2026, gross income does not include the amount of a grant awarded pursuant to the California Small Business COVID-19 Relief Grant Program.SEC. 2. Section 24313 is added to the Revenue and Taxation Code, to read:24313. For taxable years beginning on or after January 1, 2021, and before January 1, 2026, gross income does not include the amount of a grant awarded pursuant to the California Small Business COVID-19 Relief Grant Program.SEC. 3. (a) For the purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares that the goals, purposes, and objectives of this exclusion are both of the following:(1) To recognize the financial hardship that Californias small businesses have endured as a result of the COVID-19 pandemic.(2) To provide some financial relief to the small business community.(b) (1) The Legislature shall use income reporting for the exclusion provided by the Franchise Tax Board as performance indicators to measure whether the exclusion meets the goals, purposes, and objectives stated in subdivision (a).(2) The Franchise Tax Board shall determine the income brackets of individuals who claimed the exclusion allowed by this section and, notwithstanding Section 19452 of the Revenue and Taxation Code, shall provide that information to the Legislature in an annual report, submitted pursuant to Section 9795 of the Government Code, to assist the Legislature in determining whether the exclusion is helping recipients of a grant from the California Small Business COVID-19 Relief Grant Program.SEC. 4. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. |
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| 3 | 3 | | CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION Assembly Bill No. 994Introduced by Assembly Member Patterson(Coauthors: Assembly Members Chen, Choi, Davies, Fong, Gallagher, Cristina Garcia, Kiley, Lackey, Mathis, ODonnell, Ramos, Seyarto, Smith, Valladares, and Voepel)(Coauthors: Senators Hurtado and Wilk)February 18, 2021 An act to add Sections 17131.12 and 24313 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTAB 994, as introduced, Patterson. Income taxation: exclusion: California Small Business COVID-19 Relief Grant Program.The Personal Income Tax Law and the Corporation Tax Law, in modified conformity with federal law, generally define gross income as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income for purposes of computing tax liability. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.This bill, for taxable years beginning on or after January 1, 2021, and before January 1, 2026, would exclude, under both laws, from gross income the amount of a grant awarded pursuant to the California Small Business COVID-19 Relief Grant Program.This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO |
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| 9 | 9 | | CALIFORNIA LEGISLATURE 20212022 REGULAR SESSION |
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| 11 | 11 | | Assembly Bill |
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| 12 | 12 | | |
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| 13 | 13 | | No. 994 |
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| 15 | 15 | | Introduced by Assembly Member Patterson(Coauthors: Assembly Members Chen, Choi, Davies, Fong, Gallagher, Cristina Garcia, Kiley, Lackey, Mathis, ODonnell, Ramos, Seyarto, Smith, Valladares, and Voepel)(Coauthors: Senators Hurtado and Wilk)February 18, 2021 |
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| 17 | 17 | | Introduced by Assembly Member Patterson(Coauthors: Assembly Members Chen, Choi, Davies, Fong, Gallagher, Cristina Garcia, Kiley, Lackey, Mathis, ODonnell, Ramos, Seyarto, Smith, Valladares, and Voepel)(Coauthors: Senators Hurtado and Wilk) |
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| 18 | 18 | | February 18, 2021 |
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| 19 | 19 | | |
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| 20 | 20 | | An act to add Sections 17131.12 and 24313 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. |
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| 21 | 21 | | |
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| 22 | 22 | | LEGISLATIVE COUNSEL'S DIGEST |
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| 23 | 23 | | |
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| 24 | 24 | | ## LEGISLATIVE COUNSEL'S DIGEST |
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| 25 | 25 | | |
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| 26 | 26 | | AB 994, as introduced, Patterson. Income taxation: exclusion: California Small Business COVID-19 Relief Grant Program. |
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| 27 | 27 | | |
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| 28 | 28 | | The Personal Income Tax Law and the Corporation Tax Law, in modified conformity with federal law, generally define gross income as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income for purposes of computing tax liability. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.This bill, for taxable years beginning on or after January 1, 2021, and before January 1, 2026, would exclude, under both laws, from gross income the amount of a grant awarded pursuant to the California Small Business COVID-19 Relief Grant Program.This bill would take effect immediately as a tax levy. |
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| 30 | 30 | | The Personal Income Tax Law and the Corporation Tax Law, in modified conformity with federal law, generally define gross income as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income for purposes of computing tax liability. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. |
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| 31 | 31 | | |
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| 32 | 32 | | This bill, for taxable years beginning on or after January 1, 2021, and before January 1, 2026, would exclude, under both laws, from gross income the amount of a grant awarded pursuant to the California Small Business COVID-19 Relief Grant Program. |
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| 33 | 33 | | |
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| 34 | 34 | | This bill would take effect immediately as a tax levy. |
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| 35 | 35 | | |
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| 36 | 36 | | ## Digest Key |
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| 37 | 37 | | |
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| 38 | 38 | | ## Bill Text |
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| 40 | 40 | | The people of the State of California do enact as follows:SECTION 1. Section 17131.12 is added to the Revenue and Taxation Code, to read:17131.12. For taxable years beginning on or after January 1, 2021, and before January 1, 2026, gross income does not include the amount of a grant awarded pursuant to the California Small Business COVID-19 Relief Grant Program.SEC. 2. Section 24313 is added to the Revenue and Taxation Code, to read:24313. For taxable years beginning on or after January 1, 2021, and before January 1, 2026, gross income does not include the amount of a grant awarded pursuant to the California Small Business COVID-19 Relief Grant Program.SEC. 3. (a) For the purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares that the goals, purposes, and objectives of this exclusion are both of the following:(1) To recognize the financial hardship that Californias small businesses have endured as a result of the COVID-19 pandemic.(2) To provide some financial relief to the small business community.(b) (1) The Legislature shall use income reporting for the exclusion provided by the Franchise Tax Board as performance indicators to measure whether the exclusion meets the goals, purposes, and objectives stated in subdivision (a).(2) The Franchise Tax Board shall determine the income brackets of individuals who claimed the exclusion allowed by this section and, notwithstanding Section 19452 of the Revenue and Taxation Code, shall provide that information to the Legislature in an annual report, submitted pursuant to Section 9795 of the Government Code, to assist the Legislature in determining whether the exclusion is helping recipients of a grant from the California Small Business COVID-19 Relief Grant Program.SEC. 4. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. |
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| 42 | 42 | | The people of the State of California do enact as follows: |
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| 44 | 44 | | ## The people of the State of California do enact as follows: |
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| 46 | 46 | | SECTION 1. Section 17131.12 is added to the Revenue and Taxation Code, to read:17131.12. For taxable years beginning on or after January 1, 2021, and before January 1, 2026, gross income does not include the amount of a grant awarded pursuant to the California Small Business COVID-19 Relief Grant Program. |
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| 48 | 48 | | SECTION 1. Section 17131.12 is added to the Revenue and Taxation Code, to read: |
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| 49 | 49 | | |
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| 50 | 50 | | ### SECTION 1. |
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| 52 | 52 | | 17131.12. For taxable years beginning on or after January 1, 2021, and before January 1, 2026, gross income does not include the amount of a grant awarded pursuant to the California Small Business COVID-19 Relief Grant Program. |
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| 53 | 53 | | |
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| 54 | 54 | | 17131.12. For taxable years beginning on or after January 1, 2021, and before January 1, 2026, gross income does not include the amount of a grant awarded pursuant to the California Small Business COVID-19 Relief Grant Program. |
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| 55 | 55 | | |
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| 56 | 56 | | 17131.12. For taxable years beginning on or after January 1, 2021, and before January 1, 2026, gross income does not include the amount of a grant awarded pursuant to the California Small Business COVID-19 Relief Grant Program. |
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| 60 | 60 | | 17131.12. For taxable years beginning on or after January 1, 2021, and before January 1, 2026, gross income does not include the amount of a grant awarded pursuant to the California Small Business COVID-19 Relief Grant Program. |
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| 61 | 61 | | |
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| 62 | 62 | | SEC. 2. Section 24313 is added to the Revenue and Taxation Code, to read:24313. For taxable years beginning on or after January 1, 2021, and before January 1, 2026, gross income does not include the amount of a grant awarded pursuant to the California Small Business COVID-19 Relief Grant Program. |
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| 64 | 64 | | SEC. 2. Section 24313 is added to the Revenue and Taxation Code, to read: |
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| 65 | 65 | | |
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| 66 | 66 | | ### SEC. 2. |
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| 68 | 68 | | 24313. For taxable years beginning on or after January 1, 2021, and before January 1, 2026, gross income does not include the amount of a grant awarded pursuant to the California Small Business COVID-19 Relief Grant Program. |
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| 70 | 70 | | 24313. For taxable years beginning on or after January 1, 2021, and before January 1, 2026, gross income does not include the amount of a grant awarded pursuant to the California Small Business COVID-19 Relief Grant Program. |
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| 72 | 72 | | 24313. For taxable years beginning on or after January 1, 2021, and before January 1, 2026, gross income does not include the amount of a grant awarded pursuant to the California Small Business COVID-19 Relief Grant Program. |
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| 76 | 76 | | 24313. For taxable years beginning on or after January 1, 2021, and before January 1, 2026, gross income does not include the amount of a grant awarded pursuant to the California Small Business COVID-19 Relief Grant Program. |
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| 78 | 78 | | SEC. 3. (a) For the purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares that the goals, purposes, and objectives of this exclusion are both of the following:(1) To recognize the financial hardship that Californias small businesses have endured as a result of the COVID-19 pandemic.(2) To provide some financial relief to the small business community.(b) (1) The Legislature shall use income reporting for the exclusion provided by the Franchise Tax Board as performance indicators to measure whether the exclusion meets the goals, purposes, and objectives stated in subdivision (a).(2) The Franchise Tax Board shall determine the income brackets of individuals who claimed the exclusion allowed by this section and, notwithstanding Section 19452 of the Revenue and Taxation Code, shall provide that information to the Legislature in an annual report, submitted pursuant to Section 9795 of the Government Code, to assist the Legislature in determining whether the exclusion is helping recipients of a grant from the California Small Business COVID-19 Relief Grant Program. |
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| 80 | 80 | | SEC. 3. (a) For the purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares that the goals, purposes, and objectives of this exclusion are both of the following:(1) To recognize the financial hardship that Californias small businesses have endured as a result of the COVID-19 pandemic.(2) To provide some financial relief to the small business community.(b) (1) The Legislature shall use income reporting for the exclusion provided by the Franchise Tax Board as performance indicators to measure whether the exclusion meets the goals, purposes, and objectives stated in subdivision (a).(2) The Franchise Tax Board shall determine the income brackets of individuals who claimed the exclusion allowed by this section and, notwithstanding Section 19452 of the Revenue and Taxation Code, shall provide that information to the Legislature in an annual report, submitted pursuant to Section 9795 of the Government Code, to assist the Legislature in determining whether the exclusion is helping recipients of a grant from the California Small Business COVID-19 Relief Grant Program. |
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| 82 | 82 | | SEC. 3. (a) For the purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares that the goals, purposes, and objectives of this exclusion are both of the following: |
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| 84 | 84 | | ### SEC. 3. |
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| 86 | 86 | | (1) To recognize the financial hardship that Californias small businesses have endured as a result of the COVID-19 pandemic. |
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| 88 | 88 | | (2) To provide some financial relief to the small business community. |
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| 90 | 90 | | (b) (1) The Legislature shall use income reporting for the exclusion provided by the Franchise Tax Board as performance indicators to measure whether the exclusion meets the goals, purposes, and objectives stated in subdivision (a). |
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| 92 | 92 | | (2) The Franchise Tax Board shall determine the income brackets of individuals who claimed the exclusion allowed by this section and, notwithstanding Section 19452 of the Revenue and Taxation Code, shall provide that information to the Legislature in an annual report, submitted pursuant to Section 9795 of the Government Code, to assist the Legislature in determining whether the exclusion is helping recipients of a grant from the California Small Business COVID-19 Relief Grant Program. |
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| 94 | 94 | | SEC. 4. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. |
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| 96 | 96 | | SEC. 4. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. |
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| 97 | 97 | | |
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| 98 | 98 | | SEC. 4. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. |
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| 99 | 99 | | |
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| 100 | 100 | | ### SEC. 4. |
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