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AB-6 Income tax credits: prewiring for alternative energy sources.(2013-2014)

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Amended  IN  Assembly  March 21, 2013

CALIFORNIA LEGISLATURE— 2013–2014 REGULAR SESSION

Assembly Bill
No. 6


Introduced by Assembly Member Gorell

December 03, 2012


An act to add and repeal Sections 17053.88 and 23689 17052.9 and 23605 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 6, as amended, Gorell. Income tax credits: emergency standby generators. prewiring for alternative energy sources.
The Personal Income Tax Law and the Corporation Tax Law authorize allow various credits against the taxes imposed by those laws.
This bill would authorize allow a credit against those taxes for each taxable year beginning on or after January 1, 2012, 2014, and before January 1, 2017 2019, in an amount equal to 50% of the amount paid or incurred during the taxable year, up to $2,500, for the purchase and installation of an emergency standby generator, prewiring, as defined, at a service station, as defined, located in this state.
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.

 It is the intent of this act to provide an incentive for a taxpayer that operates a service station to purchase and install an emergency standby generator install appropriate wiring, including, but not limited to, a transfer switch that would enable the use of an alternative energy source to operate fuel pumps, dispensing equipment, payment acceptance equipment, and safety systems including, but not limited to, emergency fuel shutoff systems and fire alarms, at a service station located in this state in order for the service station to be able to continue to maintain electrical power to provide services to the public during power outages.

SEC. 2.

 Section 17052.9 is added to the Revenue and Taxation Code, to read:

17052.9.
 (a) For each taxable year beginning on or after January 1, 2014, and before January 1, 2019, 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 the installation of prewiring at a service station located in this state, not to exceed two thousand five hundred dollars ($2,500).
(b) For the purposes of this section:
(1) “Prewiring” means wiring, including, but not limited to, a transfer switch that would enable the use of an alternative energy source to operate fuel pumps, dispensing equipment, payment acceptance equipment, and safety systems, including, but not limited to, emergency fuel shutoff systems and fire alarms, that allows a service station to continue to maintain electrical power to provide services to the public during a power outage.
(2) “Service station” means an establishment that sells to the public gasoline or other fuel that powers motor vehicles and that is located on a county-designated evacuation route.
(c) 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 the seven succeeding years if necessary, until the credit is exhausted.
(d) This section shall remain in effect only until December 1, 2019, and as of that date is repealed.

SEC. 3.

 Section 23605 is added to the Revenue and Taxation Code, to read:

23605.
 (a) For each taxable year beginning on or after January 1, 2014, and before January 1, 2019, 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 the installation of prewiring at a service station located in this state, not to exceed two thousand five hundred dollars ($2,500).
(b) For the purposes of this section:
(1) “Prewiring” means wiring, including, but not limited to, a transfer switch that would enable the use of an alternative energy source to operate fuel pumps, dispensing equipment, payment acceptance equipment, and safety systems, including, but not limited to, emergency fuel shutoff systems and fire alarms, that allows a service station to continue to maintain electrical power to provide services to the public during a power outage.
(2) “Service station” means an establishment that sells to the public gasoline or other fuel that powers motor vehicles and that is located on a county-designated evacuation route.
(c) 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 the seven succeeding years if necessary, until the credit is exhausted.
(d) This section shall remain in effect only until December 1, 2019, and as of that date is repealed.

SEC. 2.Section 17053.88 is added to the Revenue and Taxation Code, to read:
17053.88.

(a)For each taxable year beginning on or after January 1, 2012, and before January 1, 2017, 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 the purchase and installation of an emergency standby generator at a service station located in this state, not to exceed two thousand five hundred dollars ($2,500) per emergency standby generator.

(b)For purposes of this section:

(1)“Emergency standby generator” means an electrical generator that is rated by the manufacturer to generate at least 30 kilowatts of electricity and whose sole function is to automatically provide electric power when electric power from a utility service is interrupted.

(2)

“Gross receipts” shall have the same meaning as set forth in Section 25120.

(3)

“Service station” means an establishment that offers for sale or sells to the public, gasoline or other fuel to power motor vehicles and is owned by a taxpayer with worldwide gross receipts of less than one million dollars ($1,000,000) for any taxable year for which the credit authorized by this section is claimed. The gross receipts of any trades or businesses that are treated as related under Section 267, 318, or 707 of the Internal Revenue Code shall be aggregated for purposes of determining worldwide gross receipts under this paragraph.

(c)The depreciable basis of any emergency standby generator shall be reduced by the amount of any credit allowable under this section.

(d)If an emergency standby generator for which a credit is allowed pursuant to this section is thereafter sold, returned to the vendor, or otherwise removed from service by the taxpayer within one year from the date the emergency standby generator was placed in service, the amount of credit allowed by this section for the purchase and installation of that emergency standby generator shall be recaptured by adding that credit amount to the net tax of the taxpayer for the taxable year in which the emergency standby generator is sold or removed.

(e)

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 the seven succeeding years if necessary, until the credit is exhausted.

(f)

This section shall remain in effect only until December 1, 2017, and as of that date is repealed.

SEC. 3.Section 23689 is added to the Revenue and Taxation Code, to read:
23689.

(a)For each taxable year beginning on or after January 1, 2012, and before January 1, 2017, 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 the purchase and installation of an emergency standby generator at a service station located in this state, not to exceed two thousand five hundred dollars ($2,500) per emergency standby generator.

(b)For purposes of this section:

(1)“Emergency standby generator” means an electrical generator that is rated by the manufacturer to generate at least 30 kilowatts of electricity and whose sole function is to automatically provide electric power when electric power from a utility service is interrupted.

(2)

“Gross receipts” shall have the same meaning as set forth in Section 25120.

(3)

“Service station” means an establishment that offers for sale or sells to the public, gasoline or other fuel to power motor vehicles and is owned by a taxpayer with worldwide gross receipts of less than one million dollars ($1,000,000) for any taxable year for which the credit authorized by this section is claimed. The gross receipts of any trades or businesses that are treated as related under Section 267, 318, or 707 of the Internal Revenue Code shall be aggregated for purposes of determining worldwide gross receipts under this paragraph.

(c)The depreciable basis of any emergency standby generator shall be reduced by the amount of any credit allowable under this section.

(d)If an emergency standby generator for which a credit is allowed pursuant to this section is thereafter sold, returned to the vendor, or otherwise removed from service by the taxpayer within one year from the date the emergency standby generator was placed in service, the amount of credit allowed by this section for the purchase and installation of that emergency standby generator shall be recaptured by adding that credit amount to the tax of the taxpayer for the taxable year in which the emergency standby generator is sold or removed.

(e)

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 the seven succeeding years if necessary, until the credit is exhausted.

(f)

This section shall remain in effect only until December 1, 2017, and as of that date is repealed.

SEC. 4.

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