Personal Income Tax Law: deductions: charitable contributions: business expenses.

The Personal Income Tax Law, in specified conformity to federal income tax laws, allows a charitable contribution deduction and a deduction for certain business expenses in computing tax liability. This bill, for taxable years beginning on or after January 1, 2014, would disallow a charitable contribution deduction for contributions made to a postsecondary institution or to the Key Worldwide Foundation, and a deduction for certain business expenses related to a payment to the Edge College and Career Network, LLC, by taxpayers who meet specified conditions, including that they are named in any of several specified criminal complaints. The bill would also state the Legislature's intent to alert the Franchise Tax Board to certain potentially unlawful deductions. This bill would include a change in state statute that would result in a taxpayer paying a higher tax within the meaning of Section 3 of Article XIIIA of the California Constitution, and thus would require for passage the approval of 23 of the membership of each house of the Legislature. This bill would take effect immediately as a tax levy.