San Francisco Tax Preparation / CPA: CA – FTB to develop plan for California economic improvement tax voucher program
The Franchise Tax Board (FTB), in consultation with the Treasurer and the Department of Finance, must develop a comprehensive plan for a California Economic Improvement Tax Voucher Program. The FTB must provide the plan to the Assembly and Senate budget committees by March 1, 2021. Taxpayers could use the tax vouchers as a credit against their personal income tax or corporation tax liability.
California Economic Improvement Tax Voucher Program
Under the plan, the tax vouchers must be:
periodically created through statute as assets of the state;
created in small increments to ensure widespread access to participants of varying wealth and income levels;
allowed as a credit in tax years beginning after the year in which they are sold;
eligible for carryover to future tax years; and
The plan must include authorization for the Treasurer, or other state entity, to allocate the tax vouchers. The tax vouchers would work as a prepayment of taxes, to provide immediate resources to the state. California would not tax any capital gain from the tax vouchers.
FTB Data Sharing
The FTB must now, upon request, disclose return information to the Employment Development Department (EDD) to verify income, when necessary for EDD unemployment program administration.
Also, for tax years beginning on or after January 1, 2018, and before January 1, 2020, the FTB may disclose return information to the State Department of Social Services (DSS), for purposes of informing individuals of the availability of federal stimulus payments.
Finally, DSS may now exchange data with the FTB, upon request, including, but not limited to, names, addresses, and contact information of individuals that may qualify for the California earned income tax credit. A.B. 107, Laws 2020, effective September 29, 2020