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SB-1020 Income taxes: credits: generators. (2019-2020)

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Date Published: 02/14/2020 09:00 PM
SB1020:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Senate Bill
No. 1020


Introduced by Senator Dahle

February 14, 2020


An act to add and repeal Sections 17053.61 and 23661 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


SB 1020, as introduced, Dahle. Income taxes: credits: generators.
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 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.
This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2019, and before January 1, 2021, to a taxpayer that purchases a backup power generator for use in a residence or commercial property located in a high fire-threat district, as defined, not to exceed $1,500 per tax payer. The bill would limit the total amount of credits allowed to $2,000,000,000 and would require the credits to be allocated on a first-come-first-served basis. The bill also would include 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.

 Section 17053.61 is added to the Revenue and Taxation Code, to read:

17053.61.
 (a) (1) For each taxable year beginning on or after January 1, 2019, and before January 1, 2021, there shall be allowed a credit against the “net tax,” as defined in Section 17039, to a taxpayer in an amount equal to the costs paid or incurred for the purchase of a backup power generator for use in a residence or commercial property located in a high fire-threat district.
(2) The credit allowed to a taxpayer by this section shall not exceed one thousand five hundred dollars ($1,500).
(b) For purposes of this section, “high fire-threat district” means areas identified as tier 2 (elevated) or tier 3 (extreme) fire risk on the fire-threat map maintained by the Public Utilities Commission.
(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 taxable year, and succeeding four years if necessary, until the credit is exhausted.
(d) A deduction shall not be allowed under this part for amounts taken into account in the calculation of the credit allowed by this section.
(e) The aggregate amount of credit that may be allowed pursuant to this section and Section 23661 shall not exceed the sum of the two billion dollars ($2,000,000,000).
(1) The Franchise Tax Board shall allocate the tax credit allowed by this section on a first-come-first-served basis. The determination of the Franchise Tax Board with respect to the date the return is received and the allocation of the credit may not be reviewed in any administrative or judicial proceeding.
(f) This section shall remain in effect only until December 1, 2021, and as of that date is repealed.

SEC. 2.

 Section 23661 is added to the Revenue and Taxation Code, to read:

23661.
 (a) (1) For each taxable year beginning on or after January 1, 2019, and before January 1, 2021, there shall be allowed a credit against the “tax,” as defined in Section 23036, to a taxpayer in an amount equal to the costs paid or incurred for the purchase of a backup power generator for use in a residence or commercial property located in a high fire-threat district.
(2) The credit allowed to a taxpayer by this section shall not exceed one thousand five hundred dollars ($1,500).
(b) For purposes of this section, “high fire-threat district” means areas identified as tier 2 (elevated) or tier 3 (extreme) fire risk on the fire-threat map maintained by the Public Utilities Commission.
(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 taxable year, and succeeding four years if necessary, until the credit is exhausted.
(d) A deduction shall not be allowed under this part for amounts taken into account in the calculation of the credit allowed by this section.
(e) The total amount of credit that may be allowed pursuant to this section and Section 17053.61 shall not exceed the sum of the two billion dollars ($2,000,000,000).
(1) The Franchise Tax Board shall allocate the tax credit allowed by this section on a first-come-first-served basis. The determination of the Franchise Tax Board with respect to the date the return is received and the allocation of the credit may not be reviewed in any administrative or judicial proceeding.
(f) This section shall remain in effect only until December 1, 2021, and as of that date is repealed.

SEC. 3.

 For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Sections 17053.61 and 23661 of the Revenue and Taxation Code as added by this act, the Legislature finds and declares as follows:
(a) The goal of the credits is to minimize the impact of power shutoffs on residents and businesses located in high fire-threat districts.
(b) The effectiveness of the credits shall be measured by the number of taxpayers claiming the credit.

SEC. 4.

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