SB 32

Bill Subjects

Abstract

Existing laws governing the taxation of insurers, the Personal Income Tax Law, and the Corporation Tax Law, allow various credits against the taxes imposed by those laws. The Capital Access Company Law provides for licensing and regulation by the Commissioner of Corporations of capital access companies, which provide risk capital and management assistance to business entities. This bill would enact the California Jobs Act, which would require the Treasurer to sell tax credits to taxpayers in an auction designed and supervised by the Treasurer, as specified. This bill would require the proceeds from the sale of the tax credits to be deposited in the California Jobs Act Investment Fund, created by the bill. This bill would, for taxable years beginning on or after January 1, 2015, and before January 1, 2023, allow a credit against the tax imposed upon insurers and against the taxes imposed under the Personal Income Tax Law and the Corporation Tax Law, equal to the amount stated on the written instrument used by the Treasurer to evidence the sale of tax credits, as provided. This bill would create the California Jobs Act Board, as specified, and would require the board to designate capital access companies as qualified capital access companies, as specified. This bill would authorize capital access companies to apply to the board for designation, as specified. This bill would require revenues deposited in the California Jobs Act Investment Fund to be available, upon appropriation by the Legislature, for allocation by the board, as specified, to qualified capital access companies for the purpose of making investments in qualified businesses, as defined. This bill would authorize the board to charge certain fees to cover the board's costs in carrying out its responsibilities. This bill would impose certain duties upon qualified capital access companies, including a duty to make specified investments in qualified businesses, as specified. This bill would authorize the board to revoke any designation as a qualified access company and to assess a penalty, as specified, for any qualified capital access company that fails to perform any duty. This bill would require the board to report to the Legislature the results of the act, as provided.