Personal Income and Corporation Tax Law: nonqualified deferred compensation plan: tentative minimum tax: credits: exempt organizations.

The Personal Income Tax Law conforms to the federal income tax law that includes in gross income the compensation from nonqualified deferred compensation plans that fail to meet specified requirements. These laws require the amount of tax imposed to be increased by the amount of interest at the underpayment rate, as specified, and 20% of the compensation that is required to be included in gross income. This bill would substitute 5% in lieu of 20% for taxable years beginning on or after January 1, 2013. The Corporation Tax Law provides various credits against the taxes imposed by that law, including a credit for qualified expenditures for the production of qualified motion pictures in the state. Existing law provides for a tentative minimum tax and further provides that, except for specified credits, no other credit shall reduce the tax imposed below the tentative minimum tax. This bill would additionally allow, for taxable years beginning on or after January 1, 2011, the credit for qualified expenditures for the production of qualified motion pictures to reduce the tentative minimum tax. This bill would make findings related to the public purpose served by the bill. The Corporation Tax Law, in modified conformity with federal income tax laws, exempts various types of organizations from state income taxes imposed by that law. Existing law establishes a streamlined method by which organizations that have obtained a ruling or determination from the Internal Revenue Service that it is exempt from federal income taxes as an organization described in Section 501(c) (3) of the Internal Revenue Code may obtain exemption from state income taxes, as provided. This bill would allow an organization that has obtained a ruling or determination from the Internal Revenue Service that it is exempt from federal income taxes as an organization described in Section 501(c) (3) , (c) (4) , (c) (5) , (c) (6) , or (c) (7) of the Internal Revenue Code to use this streamlined method. This bill would also make conforming changes.