CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 230Introduced by Senator Seyarto(Coauthors: Senators Alvarado-Gil, Dahle, Grove, Jones, Nguyen, and Ochoa Bogh)(Coauthors: Assembly Members Chen, Flora, and Mathis)January 23, 2023 An act to add and repeal Sections 17215.5 and 24343.4 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTSB 230, as introduced, Seyarto. Income tax: deduction: employers: health savings accounts.The Personal Income Tax Law and the Corporation Tax Law, in modified conformity with federal income tax laws, generally allow various deductions in computing the income that is subject to tax imposed under those laws.This bill, for taxable years beginning on or after January 1, 2023, and before January 1, 2028, would allow a deduction in computing income for a taxpayer with 50 or fewer employees that makes an employer contribution to a health savings account, as specified. 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.The bill would make specified findings detailing the goals, purposes, and objectives of the above-described tax expenditure, performance indicators for determining whether the tax expenditure meets those goals, purposes, and objectives, and data collection requirements. 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 17215.5 is added to the Revenue and Taxation Code, to read:17215.5. (a) For taxable years beginning on or after January 1, 2023, and before January 1, 2028, a deduction shall be allowed for any employer contribution to a health savings account, as defined in Section 223 of the Internal Revenue Code, relating to health savings accounts, for the taxable year the contribution was made.(b) (1) For purposes of this section, employer means a taxpayer with 50 or fewer employees.(2) Employer shall not include a sole proprietor.(c) Any deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which the deduction under subdivision (a) is based shall be reduced by the amount of the deduction allowed under subdivision (a).(d) For purposes of complying with Section 41, with respect to this section and Section 24343.4, the Legislature finds and declares the following:(1) The specific goal, purpose, and objective is to increase access to health care through the following:(A) Creating an incentive for small business employers to offer some health benefit they may not otherwise offer due to their exemption from the employer mandate in the Affordable Care Act. (B) Creating an incentive to increase total small business employee compensation packages via employer health savings account contributions in order to better compensate for rising health care costs. (2) The detailed performance indicator for the Legislature to use in determining whether the deduction meets those goals, purposes, and objectives is the number of employers taking advantage of the deduction. (3) (A) The Legislative Analyst, on January 1, 2025, and annually thereafter, shall provide a report to the Legislature on the effectiveness of the tax deduction.(B) Notwithstanding Section 19542, the Franchise Tax Board shall provide any data requested by the Legislative Analyst for purposes of this paragraph. (e) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.SEC. 2. Section 24343.4 is added to the Revenue and Taxation Code, to read:24343.4. (a) For taxable years beginning on or after January 1, 2023, and before January 1, 2028, a deduction shall be allowed for any employer contribution to a health savings account, as defined in Section 223 of the Internal Revenue Code, relating to health savings accounts, for the taxable year the contribution was made.(b) (1) For purposes of this section, employer means a taxpayer with 50 or fewer employees.(2) Employer shall not include a sole proprietor.(c) Any deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which the deduction under subdivision (a) is based shall be reduced by the amount of the deduction allowed under subdivision (a).(d) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Senate Bill No. 230Introduced by Senator Seyarto(Coauthors: Senators Alvarado-Gil, Dahle, Grove, Jones, Nguyen, and Ochoa Bogh)(Coauthors: Assembly Members Chen, Flora, and Mathis)January 23, 2023 An act to add and repeal Sections 17215.5 and 24343.4 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTSB 230, as introduced, Seyarto. Income tax: deduction: employers: health savings accounts.The Personal Income Tax Law and the Corporation Tax Law, in modified conformity with federal income tax laws, generally allow various deductions in computing the income that is subject to tax imposed under those laws.This bill, for taxable years beginning on or after January 1, 2023, and before January 1, 2028, would allow a deduction in computing income for a taxpayer with 50 or fewer employees that makes an employer contribution to a health savings account, as specified. 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.The bill would make specified findings detailing the goals, purposes, and objectives of the above-described tax expenditure, performance indicators for determining whether the tax expenditure meets those goals, purposes, and objectives, and data collection requirements. This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO
CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION
Senate Bill
No. 230
Introduced by Senator Seyarto(Coauthors: Senators Alvarado-Gil, Dahle, Grove, Jones, Nguyen, and Ochoa Bogh)(Coauthors: Assembly Members Chen, Flora, and Mathis)January 23, 2023
Introduced by Senator Seyarto(Coauthors: Senators Alvarado-Gil, Dahle, Grove, Jones, Nguyen, and Ochoa Bogh)(Coauthors: Assembly Members Chen, Flora, and Mathis)
January 23, 2023
An act to add and repeal Sections 17215.5 and 24343.4 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
## LEGISLATIVE COUNSEL'S DIGEST
SB 230, as introduced, Seyarto. Income tax: deduction: employers: health savings accounts.
The Personal Income Tax Law and the Corporation Tax Law, in modified conformity with federal income tax laws, generally allow various deductions in computing the income that is subject to tax imposed under those laws.This bill, for taxable years beginning on or after January 1, 2023, and before January 1, 2028, would allow a deduction in computing income for a taxpayer with 50 or fewer employees that makes an employer contribution to a health savings account, as specified. 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.The bill would make specified findings detailing the goals, purposes, and objectives of the above-described tax expenditure, performance indicators for determining whether the tax expenditure meets those goals, purposes, and objectives, and data collection requirements. This bill would take effect immediately as a tax levy.
The Personal Income Tax Law and the Corporation Tax Law, in modified conformity with federal income tax laws, generally allow various deductions in computing the income that is subject to tax imposed under those laws.
This bill, for taxable years beginning on or after January 1, 2023, and before January 1, 2028, would allow a deduction in computing income for a taxpayer with 50 or fewer employees that makes an employer contribution to a health savings account, as specified.
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.
The bill would make specified findings detailing the goals, purposes, and objectives of the above-described tax expenditure, performance indicators for determining whether the tax expenditure meets those goals, purposes, and objectives, and data collection requirements.
This bill would take effect immediately as a tax levy.
## Digest Key
## Bill Text
The people of the State of California do enact as follows:SECTION 1. Section 17215.5 is added to the Revenue and Taxation Code, to read:17215.5. (a) For taxable years beginning on or after January 1, 2023, and before January 1, 2028, a deduction shall be allowed for any employer contribution to a health savings account, as defined in Section 223 of the Internal Revenue Code, relating to health savings accounts, for the taxable year the contribution was made.(b) (1) For purposes of this section, employer means a taxpayer with 50 or fewer employees.(2) Employer shall not include a sole proprietor.(c) Any deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which the deduction under subdivision (a) is based shall be reduced by the amount of the deduction allowed under subdivision (a).(d) For purposes of complying with Section 41, with respect to this section and Section 24343.4, the Legislature finds and declares the following:(1) The specific goal, purpose, and objective is to increase access to health care through the following:(A) Creating an incentive for small business employers to offer some health benefit they may not otherwise offer due to their exemption from the employer mandate in the Affordable Care Act. (B) Creating an incentive to increase total small business employee compensation packages via employer health savings account contributions in order to better compensate for rising health care costs. (2) The detailed performance indicator for the Legislature to use in determining whether the deduction meets those goals, purposes, and objectives is the number of employers taking advantage of the deduction. (3) (A) The Legislative Analyst, on January 1, 2025, and annually thereafter, shall provide a report to the Legislature on the effectiveness of the tax deduction.(B) Notwithstanding Section 19542, the Franchise Tax Board shall provide any data requested by the Legislative Analyst for purposes of this paragraph. (e) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.SEC. 2. Section 24343.4 is added to the Revenue and Taxation Code, to read:24343.4. (a) For taxable years beginning on or after January 1, 2023, and before January 1, 2028, a deduction shall be allowed for any employer contribution to a health savings account, as defined in Section 223 of the Internal Revenue Code, relating to health savings accounts, for the taxable year the contribution was made.(b) (1) For purposes of this section, employer means a taxpayer with 50 or fewer employees.(2) Employer shall not include a sole proprietor.(c) Any deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which the deduction under subdivision (a) is based shall be reduced by the amount of the deduction allowed under subdivision (a).(d) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
The people of the State of California do enact as follows:
## The people of the State of California do enact as follows:
SECTION 1. Section 17215.5 is added to the Revenue and Taxation Code, to read:17215.5. (a) For taxable years beginning on or after January 1, 2023, and before January 1, 2028, a deduction shall be allowed for any employer contribution to a health savings account, as defined in Section 223 of the Internal Revenue Code, relating to health savings accounts, for the taxable year the contribution was made.(b) (1) For purposes of this section, employer means a taxpayer with 50 or fewer employees.(2) Employer shall not include a sole proprietor.(c) Any deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which the deduction under subdivision (a) is based shall be reduced by the amount of the deduction allowed under subdivision (a).(d) For purposes of complying with Section 41, with respect to this section and Section 24343.4, the Legislature finds and declares the following:(1) The specific goal, purpose, and objective is to increase access to health care through the following:(A) Creating an incentive for small business employers to offer some health benefit they may not otherwise offer due to their exemption from the employer mandate in the Affordable Care Act. (B) Creating an incentive to increase total small business employee compensation packages via employer health savings account contributions in order to better compensate for rising health care costs. (2) The detailed performance indicator for the Legislature to use in determining whether the deduction meets those goals, purposes, and objectives is the number of employers taking advantage of the deduction. (3) (A) The Legislative Analyst, on January 1, 2025, and annually thereafter, shall provide a report to the Legislature on the effectiveness of the tax deduction.(B) Notwithstanding Section 19542, the Franchise Tax Board shall provide any data requested by the Legislative Analyst for purposes of this paragraph. (e) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.
SECTION 1. Section 17215.5 is added to the Revenue and Taxation Code, to read:
### SECTION 1.
17215.5. (a) For taxable years beginning on or after January 1, 2023, and before January 1, 2028, a deduction shall be allowed for any employer contribution to a health savings account, as defined in Section 223 of the Internal Revenue Code, relating to health savings accounts, for the taxable year the contribution was made.(b) (1) For purposes of this section, employer means a taxpayer with 50 or fewer employees.(2) Employer shall not include a sole proprietor.(c) Any deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which the deduction under subdivision (a) is based shall be reduced by the amount of the deduction allowed under subdivision (a).(d) For purposes of complying with Section 41, with respect to this section and Section 24343.4, the Legislature finds and declares the following:(1) The specific goal, purpose, and objective is to increase access to health care through the following:(A) Creating an incentive for small business employers to offer some health benefit they may not otherwise offer due to their exemption from the employer mandate in the Affordable Care Act. (B) Creating an incentive to increase total small business employee compensation packages via employer health savings account contributions in order to better compensate for rising health care costs. (2) The detailed performance indicator for the Legislature to use in determining whether the deduction meets those goals, purposes, and objectives is the number of employers taking advantage of the deduction. (3) (A) The Legislative Analyst, on January 1, 2025, and annually thereafter, shall provide a report to the Legislature on the effectiveness of the tax deduction.(B) Notwithstanding Section 19542, the Franchise Tax Board shall provide any data requested by the Legislative Analyst for purposes of this paragraph. (e) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.
17215.5. (a) For taxable years beginning on or after January 1, 2023, and before January 1, 2028, a deduction shall be allowed for any employer contribution to a health savings account, as defined in Section 223 of the Internal Revenue Code, relating to health savings accounts, for the taxable year the contribution was made.(b) (1) For purposes of this section, employer means a taxpayer with 50 or fewer employees.(2) Employer shall not include a sole proprietor.(c) Any deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which the deduction under subdivision (a) is based shall be reduced by the amount of the deduction allowed under subdivision (a).(d) For purposes of complying with Section 41, with respect to this section and Section 24343.4, the Legislature finds and declares the following:(1) The specific goal, purpose, and objective is to increase access to health care through the following:(A) Creating an incentive for small business employers to offer some health benefit they may not otherwise offer due to their exemption from the employer mandate in the Affordable Care Act. (B) Creating an incentive to increase total small business employee compensation packages via employer health savings account contributions in order to better compensate for rising health care costs. (2) The detailed performance indicator for the Legislature to use in determining whether the deduction meets those goals, purposes, and objectives is the number of employers taking advantage of the deduction. (3) (A) The Legislative Analyst, on January 1, 2025, and annually thereafter, shall provide a report to the Legislature on the effectiveness of the tax deduction.(B) Notwithstanding Section 19542, the Franchise Tax Board shall provide any data requested by the Legislative Analyst for purposes of this paragraph. (e) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.
17215.5. (a) For taxable years beginning on or after January 1, 2023, and before January 1, 2028, a deduction shall be allowed for any employer contribution to a health savings account, as defined in Section 223 of the Internal Revenue Code, relating to health savings accounts, for the taxable year the contribution was made.(b) (1) For purposes of this section, employer means a taxpayer with 50 or fewer employees.(2) Employer shall not include a sole proprietor.(c) Any deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which the deduction under subdivision (a) is based shall be reduced by the amount of the deduction allowed under subdivision (a).(d) For purposes of complying with Section 41, with respect to this section and Section 24343.4, the Legislature finds and declares the following:(1) The specific goal, purpose, and objective is to increase access to health care through the following:(A) Creating an incentive for small business employers to offer some health benefit they may not otherwise offer due to their exemption from the employer mandate in the Affordable Care Act. (B) Creating an incentive to increase total small business employee compensation packages via employer health savings account contributions in order to better compensate for rising health care costs. (2) The detailed performance indicator for the Legislature to use in determining whether the deduction meets those goals, purposes, and objectives is the number of employers taking advantage of the deduction. (3) (A) The Legislative Analyst, on January 1, 2025, and annually thereafter, shall provide a report to the Legislature on the effectiveness of the tax deduction.(B) Notwithstanding Section 19542, the Franchise Tax Board shall provide any data requested by the Legislative Analyst for purposes of this paragraph. (e) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.
17215.5. (a) For taxable years beginning on or after January 1, 2023, and before January 1, 2028, a deduction shall be allowed for any employer contribution to a health savings account, as defined in Section 223 of the Internal Revenue Code, relating to health savings accounts, for the taxable year the contribution was made.
(b) (1) For purposes of this section, employer means a taxpayer with 50 or fewer employees.
(2) Employer shall not include a sole proprietor.
(c) Any deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which the deduction under subdivision (a) is based shall be reduced by the amount of the deduction allowed under subdivision (a).
(d) For purposes of complying with Section 41, with respect to this section and Section 24343.4, the Legislature finds and declares the following:
(1) The specific goal, purpose, and objective is to increase access to health care through the following:
(A) Creating an incentive for small business employers to offer some health benefit they may not otherwise offer due to their exemption from the employer mandate in the Affordable Care Act.
(B) Creating an incentive to increase total small business employee compensation packages via employer health savings account contributions in order to better compensate for rising health care costs.
(2) The detailed performance indicator for the Legislature to use in determining whether the deduction meets those goals, purposes, and objectives is the number of employers taking advantage of the deduction.
(3) (A) The Legislative Analyst, on January 1, 2025, and annually thereafter, shall provide a report to the Legislature on the effectiveness of the tax deduction.
(B) Notwithstanding Section 19542, the Franchise Tax Board shall provide any data requested by the Legislative Analyst for purposes of this paragraph.
(e) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.
SEC. 2. Section 24343.4 is added to the Revenue and Taxation Code, to read:24343.4. (a) For taxable years beginning on or after January 1, 2023, and before January 1, 2028, a deduction shall be allowed for any employer contribution to a health savings account, as defined in Section 223 of the Internal Revenue Code, relating to health savings accounts, for the taxable year the contribution was made.(b) (1) For purposes of this section, employer means a taxpayer with 50 or fewer employees.(2) Employer shall not include a sole proprietor.(c) Any deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which the deduction under subdivision (a) is based shall be reduced by the amount of the deduction allowed under subdivision (a).(d) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.
SEC. 2. Section 24343.4 is added to the Revenue and Taxation Code, to read:
### SEC. 2.
24343.4. (a) For taxable years beginning on or after January 1, 2023, and before January 1, 2028, a deduction shall be allowed for any employer contribution to a health savings account, as defined in Section 223 of the Internal Revenue Code, relating to health savings accounts, for the taxable year the contribution was made.(b) (1) For purposes of this section, employer means a taxpayer with 50 or fewer employees.(2) Employer shall not include a sole proprietor.(c) Any deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which the deduction under subdivision (a) is based shall be reduced by the amount of the deduction allowed under subdivision (a).(d) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.
24343.4. (a) For taxable years beginning on or after January 1, 2023, and before January 1, 2028, a deduction shall be allowed for any employer contribution to a health savings account, as defined in Section 223 of the Internal Revenue Code, relating to health savings accounts, for the taxable year the contribution was made.(b) (1) For purposes of this section, employer means a taxpayer with 50 or fewer employees.(2) Employer shall not include a sole proprietor.(c) Any deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which the deduction under subdivision (a) is based shall be reduced by the amount of the deduction allowed under subdivision (a).(d) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.
24343.4. (a) For taxable years beginning on or after January 1, 2023, and before January 1, 2028, a deduction shall be allowed for any employer contribution to a health savings account, as defined in Section 223 of the Internal Revenue Code, relating to health savings accounts, for the taxable year the contribution was made.(b) (1) For purposes of this section, employer means a taxpayer with 50 or fewer employees.(2) Employer shall not include a sole proprietor.(c) Any deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which the deduction under subdivision (a) is based shall be reduced by the amount of the deduction allowed under subdivision (a).(d) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.
24343.4. (a) For taxable years beginning on or after January 1, 2023, and before January 1, 2028, a deduction shall be allowed for any employer contribution to a health savings account, as defined in Section 223 of the Internal Revenue Code, relating to health savings accounts, for the taxable year the contribution was made.
(b) (1) For purposes of this section, employer means a taxpayer with 50 or fewer employees.
(2) Employer shall not include a sole proprietor.
(c) Any deduction otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which the deduction under subdivision (a) is based shall be reduced by the amount of the deduction allowed under subdivision (a).
(d) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.
SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
SEC. 3. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
### SEC. 3.