Insurance taxation: credit: California Jumpstart Act.

Existing statutory law imposes taxes on the gross premiums of an insurer, as defined, and allows various credits against those taxes. The California Constitution imposes exactions against insurers from another state or country under specified conditions. This bill would establish the California Jumpstart Act. The act would allow a credit against those taxes for each taxable year beginning on or after January 1, 2025, until January 1, 2030, in an amount equal to the amount of a relief contribution, as defined, that meets specified requirements. The bill would prohibit a taxpayer allowed a credit under the act for a qualified relief investment from being eligible for any other credit, as specified, with respect to that investment. The bill would require the California Pollution Control Financing Authority (CPCFA) to, among other things, accept applications for approval as a relief fund that meet specified requirements, including that the application include a signed certification from the chief executive officer or another similar officer of each investor committing to make a relief contribution and stating the amount of that commitment, among other attestations. The bill also would authorize the CPCFA to recover any tax credit allowed and revoke the tax credit certificates issued to a taxpayer if the taxpayer engages in specified behavior, including, failing to invest 100% of its investment authority in relief investments within 2 years of the closing date. The bill would require the CPCFA to act in consultation with the Department of Insurance to accomplish these responsibilities where specified. This bill would require, among other things, the CPCFA to undertake outreach activities to encourage investment in impact businesses, including, but not limited to, partnering with organizations representing persons and business enterprises from small businesses more than 50% owned by minorities, women, disabled veterans, lesbian, gay, bisexual or transgender persons, as described. The bill would also establish the Treasury Relief Investment Fund in the State Treasury, and would continuously appropriate the fund for purposes of these provisions. The bill would authorize CPCFA to direct the Treasurer to invest moneys in the fund, as specified, and would authorize CPCFA to use proceeds in the fund for administrative purposes. By continuously appropriating moneys in the fund, this bill would make an appropriation. This bill would provide that the California Jumpstart Act is only operative for taxable years for which an appropriation is made for its purposes in the annual Budget Act or other statute. This bill would require various certifications by officers of an investor and would require a relief fund that has not decertified to annually certify under penalty of perjury that the relief fund has not violated any of the grounds for recovery and revocation of credits. By expanding the crime of perjury, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason.