New college access tax credit.
The College Access Tax Credit (CATC) is a new state tax credit for taxpayers who make authorized contributions of money to the CATC Fund. Senate Bill 798, which the governor recently signed, established the credit for both personal and corporate income taxes under California Revenue and Taxation Code Sections 17053.86 and 23686.
The CATC is available for taxable years 2014-16. The amount that CEFA can allocate for the CATC each year is $500 million. To claim the credit, a taxpayer must make a contribution to the CATC Fund administered by the California Educational Facilities Authority (CEFA). Taxpayers must receive a certificate from the CEFA documenting the amount of the contribution and the credit amount to claim the credit on their state income tax return. The amount of the credit allocated and certified by the CEFA for a taxpayer for each taxable year is:
* 60 percent of the amount contributed by the taxpayer for the 2014 taxable year.
* 55 percent of the amount contributed by the taxpayer for the 2015 taxable year.
* 50 percent of the amount contributed by the taxpayer for the 2016 taxable year.
Learn more at www.calcpa.org/CATC.