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AB-832 Income and corporate taxes: credits: winter-flooded rice.(2017-2018)

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Date Published: 04/03/2017 09:00 PM
AB832:v97#DOCUMENT

Amended  IN  Assembly  April 03, 2017
Amended  IN  Assembly  March 20, 2017

CALIFORNIA LEGISLATURE— 2017–2018 REGULAR SESSION

Assembly Bill No. 832


Introduced by Assembly Members Aguiar-Curry and Bigelow
(Coauthors: Senators Dodd and Nielsen)

February 16, 2017


An act to add and repeal Sections 17053.84 and 23684 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 832, as amended, Aguiar-Curry. Income and corporate taxes: credits: winter-flooded rice.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. Existing law requires any bill authorizing a new income tax credit to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements, as provided.
This bill, for taxable years beginning on or after January 1, 2018, and before January 1, 2022, would allow as a credit against those taxes an amount equal to $30 per acre of winter-flooded rice 40% of costs paid or incurred by a qualified taxpayer to maintain winter-flooded rice during the taxable year. The rice. The bill would require the qualified taxpayer to submit the total acreage used for winter-flooded rice submit, among other things, evidence of costs paid or incurred to the Department of Food and Agriculture for certification and for the Department of Food and Agriculture to provide a copy of each credit certificate to the taxpayer and, upon request, to the Franchise Tax Board. The bill would also include the additional information required for any bill authorizing a new income tax credit.
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.

 This act shall be known, and may be cited, as the Pacific Flyway Protection Tax Credit Act.

SEC. 2.

 The Legislature finds and declares as follows:
(a) California’s great Central Valley, encompassing the Sacramento and San Joaquin Valleys and joined by the Bay Delta, was once an expansive complex of permanent and seasonal wetlands. Over 100 years ago, an estimated four million acres of these valuable habitats lined the Central Valley supporting an estimated 20 million to 40 million waterfowl and countless millions of other shorebirds, wading birds, raptors, and other wildlife.
(b) By the 1970s, the rich ecological wetlands complex in the Central Valley dwindled to less than 250,000 acres, just 5 percent of historic levels.
(c) Habitat improvement in this Critical Conservation Area can make a significant and beneficial conservation impact on waterbird populations in the Pacific Flyway.
(d) The Central Valley is a critical hub to the Pacific Flyway—a major migratory corridor running from Alaska to South America.
(e) Over the past few decades, winter flooding of California ricelands rice lands has created high-quality habitat on approximately 350,000 acres annually. In recent years, the average total number of winter-flooded rice has decreased decreased, and many waterbird conservationists are concerned that this trend will continue.
(f) For waterfowl, the consequences of fewer acres of winter-flooded rice is devastating, as the Central Valley Joint Venture has estimated that winter-flooded rice fields provide over 60 percent of the food required by waterfowl in the Sacramento Valley.
(g) Recent studies show that winter-flooded rice fields may also prove to be a valuable tool in improving the salmon populations by demonstrating that growth rates of juvenile salmon reared in these habitats are the highest on record.
(h) Considering the multiple threats facing the region, California should consider substantial conservation investments designed to help preserve the Pacific Flyway for future generations.

SEC. 3.

 Section 17053.84 is added to the Revenue and Taxation Code, to read:

17053.84.
 (a) For each taxable year beginning on or after January 1, 2018, and before January 1, 2022, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, an amount equal to thirty dollars ($30) per acre of winter-flooded rice 40 percent of costs paid or incurred by a qualified taxpayer to maintain winter-flooded rice during the taxable year. rice.
(b) For purposes of this section:
(1) “Qualified taxpayer” means any taxpayer that grows and maintains rice, including winter-flooded rice.
(2) “Winter-flooded rice” means the intentional flooding of a California rice field that has been farmed to rice at least two of the last three growing seasons and is maintained in a flooded state for at least 70 days between October 15 and March 15 of the following year.
(c) The credit under this section shall be claimed in the year in which the 70-day requirement described in paragraph (2) of subdivision (b) is satisfied.

(c)The

(d) Within ___ days of satisfying the 70-day requirement described in paragraph (2) of subdivision (b), the qualified taxpayer shall submit the total acreage used for evidence of costs paid or incurred to maintain winter-flooded rice rice, the taxpayer’s name and property address, and the taxpayer’s social security number or taxpayer identification number to the Department of Food and Agriculture for certification. certification. The Department of Food and Agriculture shall provide a copy of each credit certificate issued to the taxpayer and to the Franchise Tax Board. Board upon the request of the Franchise Tax Board.

(d)

(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 taxable year, and succeeding six years if necessary, until the credit is exhausted.

(e)

(f) This section shall remain in effect only until December 1, 2022, and as of that date is repealed.

SEC. 4.

 Section 23684 is added to the Revenue and Taxation Code, to read:

23684.
 (a) For each taxable year beginning on or after January 1, 2018, and before January 1, 2022, there shall be allowed as a credit against the “tax,” as defined in Section 23036, an amount equal to thirty dollars ($30) per acre of winter-flooded rice 40 percent of costs paid or incurred by a qualified taxpayer to maintain winter-flooded rice during the taxable year. rice.
(b) For purposes of this section:
(1) “Qualified taxpayer” means any taxpayer that grows and maintains rice, including winter-flooded rice.
(2) “Winter-flooded rice” means the intentional flooding of a California rice field that has been farmed to rice at least two of the last three growing seasons and is maintained in a flooded state for at least 70 days between October 15 and March 15 of the following year.
(c) The credit under this section shall be claimed in the year in which the 70-day requirement described in paragraph (2) of subdivision (b) is satisfied.

(c)The

(d) Within___ days of satisfying the 70-day requirement described in paragraph (2) of subdivision (b), the qualified taxpayer shall submit the total acreage used for evidence of costs paid or incurred to maintain winter-flooded rice rice, the taxpayer’s name and property address, and the taxpayer’s social security number or taxpayer identification number to the Department of Food and Agriculture for certification. The Department of Food and Agriculture shall provide a copy of each credit certificate issued to the taxpayer and to the Franchise Tax Board. Board upon the request of the Franchise Tax Board.

(d)

(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 taxable year, and succeeding six years if necessary, until the credit is exhausted.

(e)

(f) This section shall remain in effect only until December 1, 2022, and as of that date is repealed.

SEC. 5.

 For purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares as follows:
(a) The specific goal of this tax credit is to maintain or expand the number of acres of winter-flooded rice.
(b) The baseline to be used to determine the progress of this tax credit is 2015.
(c) Growers utilizing the tax credit will submit the total acreage used costs paid or incurred for winter-flooding to the California Department of Food and Agriculture.

SEC. 6.

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