SB 1386

Bill Subjects

Abstract

The Personal Income Tax Law, in modified conformity with federal law, provides various exclusions from gross income in computing tax liability. Existing law provides, in reference to specified federal income tax laws, that gross income does not include 50% of any gain from the sale or exchange of qualified small business stock, as defined, held for more than 5 years, and requires the qualified small business have at least 80% of its payroll attributable to employment in California. These provisions are repealed on January 1, 2016. This bill would remove the repeal date of those provisions. This bill would add the same exclusions from gross income as described above for sales made in taxable years beginning on or after January 1, 2015. This bill would take effect immediately as a tax levy.