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AB-76 Taxation: credits: hot water recirculation systems.(2001-2002)

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AB76:v97#DOCUMENT

Amended  IN  Assembly  July 19, 2001
Amended  IN  Assembly  August 20, 2001

CALIFORNIA LEGISLATURE— 2001–2002 2nd Ext.

Assembly Bill
No. 76

Introduced  by  Assembly Member Briggs, Cogdill
 (Coauthor(s): Assembly Member Cox, Dickerson, Robert Pacheco, Strom-Martin)

June 19, 2001

An act to add and repeal Sections 17052.56 and 23656 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 76, as amended, Briggs. Taxation: credits: hot water recirculation systems.
The Personal Income Tax Law and the Bank and Corporation Tax Law authorize various credits against the taxes imposed by those laws.
This bill would authorize a credit against those taxes for each taxable year beginning on or after January 1, 2001, and before January 1, 2006, in an amount equal to 50% of the amount paid or incurred during the taxable year for hot water recirculating systems, operational with specified plumbing fixtures, installed as part of new construction in this state. This bill also would provide that the total allowable amount of this credit to a taxpayer may not exceed $600 per structure.
This bill would take effect immediately as a tax levy.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 17052.56 is added to the Revenue and Taxation Code, to read:

17052.56.
 (a) For each taxable year beginning on or after January 1, 2001, and before January 1, 2006, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, an amount equal to 50 percent of the amount paid or incurred during the taxable year for a hot water recirculating system, operational with a qualified plumbing fixture, installed as part of new construction in this state. The total amount of credits allowed to a taxpayer under this section may not exceed six hundred dollars ($600) per structure.
(b) For purposes of this section:
(1) “Hot water recirculating system” means a system of pipes with a motor driven pump that recirculates water between the hot water heater and the hot water faucets so that substantially all of the cold water in the pipes will be returned to the water heater and reheated before the faucet is turned on.
(2) “Qualified plumbing fixture” includes the following:
(A) Shower heads with a maximum flow capacity of two and one-half gallons per minute.
(B) Hot water faucets with more than 10 feet of pipe connecting the faucet to the hot water heater.
(3) “New construction” means the construction of a new structure, an addition to a preexisting structure, or the renovation or remodeling of a preexisting structure, but only with respect to the portion of the preexisting structure that is remodeled or renovated.
(4) “Structure” means a structure as described in subdivision (a) of Section 105, or any successor to that subdivision.
(c) In the case of any structure that has never been occupied for its intended purpose, the credit under this section may be allowed to the owner of the property on the date that the hot water recirculating system is installed.
(d) No deduction may be allowed under this part for any cost for which a credit is allowed by this section.
(e) To the extent that data are available, the Franchise Tax Board shall report annually to the Legislature regarding the utilization of the credits authorized by this section.
(f) In the case where the credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following year, and for the six succeeding years if necessary, until the credit is exhausted.
(g) This section shall remain in effect only until December 1, 2006, and as of that date is repealed.

SEC. 2.

 Section 23656 is added to the Revenue and Taxation Code, to read:

23656.
 (a) For each taxable year beginning on or after January 1, 2001, and before January 1, 2006, there shall be allowed as a credit against the “tax,” as defined in Section 23036, an amount equal to 50 percent of the amount paid or incurred during the taxable year for a hot water recirculating system, operational with a qualified plumbing fixture, installed as part of new construction in this state. The total amount of credits allowed to a taxpayer under this section may not exceed six hundred dollars ($600).
(b) For purposes of this section:
(1) “Hot water recirculating system” means a system of pipes with a motor driven pump that recirculates water between the hot water heater and the hot water faucets so that substantially all of the cold water in the pipes will be returned to the water heater and reheated before the faucet is turned on.
(2) “Qualified plumbing fixture” includes the following:
(A) Shower heads with a maximum flow capacity of two and one-half gallons per minute.
(B) Hot water faucets with more than 10 feet of pipe connecting the faucet to the hot water heater.
(3) “New construction” means the construction of a new structure, an addition to a preexisting structure, or the renovation or remodeling of a preexisting structure, but only with respect to the portion of the preexisting structure that is remodeled or renovated.
(c) In the case of any structure that has never been occupied for its intended purpose, the credit under this section may be allowed to the owner of the property on the date that the hot water recirculating system is installed.
(d) No deduction may be allowed under this part for any cost for which a credit is allowed by this section.
(e) To the extent that data are available, the Franchise Tax Board shall report annually to the Legislature regarding the utilization of the credits authorized by this section.
(f) In the case where the credit allowed by this section exceeds the “tax,” the excess may be carried over to reduce the “tax” in the following year, and for the six succeeding years if necessary, until the credit is exhausted.
(g) This section shall remain in effect only until December 1, 2006, and as of that date is repealed.

SEC. 3.

 This act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect.