Taxation: renter's credit.

Existing law establishes the continuously appropriated Tax Relief and Refund Account in the General Fund and provides that payments required to be made to taxpayers or other persons from the Personal Income Tax Fund are to be paid from that account.

This bill, for taxable years beginning on or after January 1 of the taxable year that includes the date on which funding is first authorized for purposes of this bill and for the succeeding 4 taxable years, and only when specified in a bill relating to the Budget Act, would extend the above-described renter's credit to spouses filing joint returns, heads of household, and surviving spouses if adjusted gross income is $150,000, as adjusted, or less, and for other individuals if adjusted gross income is $75,000, as adjusted, or less. The bill would also increase the credit amount for those years to $2,000 for spouses filing joint returns, heads of households, and surviving spouses and $1,000 for other individuals. In the event the increased credit amount is not specified in a bill relating to the Budget Act, the existing credit amounts and adjusted gross income limits, as described above, would be the credit amounts and adjusted gross income limits for that taxable year. The bill would require the Franchise Tax Board to annually recompute the credit amount and the increased adjusted gross income limits for inflation for taxable years following the first year in which the increased credit is operative, except as provided.

The bill, for credits allowable for taxable years in which the above-described increased credit is operative, would provide that the credit amount in excess of the qualified renter's liability would be refundable and paid from the Tax Relief and Refund Account to the qualified renter upon appropriation by the Legislature.

Existing law requires any bill authorizing a new tax credit to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements.

The bill would provide findings and declarations relating to the goals, purposes, and objectives of this credit.

This bill would take effect immediately as a tax levy.