Taxation: credits: College Access Tax Credit.

The law 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, including a credit, for taxable years beginning on or after January 1, 2017, and before January 1, 2023, equal to 50% of a contribution to the College Access Tax Credit Fund, which is established as a special fund to receive the contributions for which the credit is given. Those laws specify that the moneys in the College Access Tax Credit Fund shall be allocated first to the General Fund, then, upon appropriation, to specified agencies for administrative costs related to this credit, and lastly continuously appropriated to the Student Aid Commission (commission) for awarding Cal Grants, and requires the commission, to the extent feasible, to make annual disbursements from the moneys allocated to the commission, as provided. This bill would extend the operation of the credit to taxable years beginning before January 1, 2028. By extending the operation of the credit and thus the appropriation in those provisions, the bill would make an appropriation. The bill would authorize the commission to make disbursements in any year in which it determines there are sufficient funds and, if the commission determines it is in the best interest of the program, the bill would authorize the commission to roll over moneys allocated to the commission for disbursement in future fiscal years. The bill would also allocate a portion of the moneys in the College Access Tax Credit Fund, upon appropriation by the Legislature, to the California Educational Facilities Authority for outreach purposes to inform taxpayers about the College Access Tax Credit Fund and specified tax credits allowed. Existing law requires any bill extending an existing tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill would provide findings to comply with the additional information requirement for any bill extending an existing tax expenditure.