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AB-264 Income taxes: credits: development impact fees.(2019-2020)

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Date Published: 01/24/2019 09:00 PM
AB264:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 264

Introduced by Assembly Member Melendez

January 24, 2019

An act to add Sections 17060 and 23647 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 264, as introduced, Melendez. Income taxes: credits: development impact fees.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.
This bill would establish credits against the taxes imposed by those laws for taxable years beginning on or after January 1, 2020, in an amount equal to the total amount paid or incurred during the taxable year by a qualified taxpayer, as defined, for the payment of development impact fees and connection fees applied to newly constructed single-family and multifamily homes.
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 17060 is added to the Revenue and Taxation Code, to read:

17060.
 (a) For each taxable year beginning on or after January 1, 2020, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, an amount equal to the total amount paid or incurred during the taxable year by a qualified taxpayer for eligible expenses.
(b) For purposes of this section:
(1) “Eligible expenses” means the total amount expended by the qualified taxpayer for the payment of development impact fees and connection fees applied to newly constructed single-family and multifamily homes.
(2) “Qualified taxpayer” means a homebuilder or developer engaged in the construction of new single-family and multifamily homes in the state.
(c) Section 41 shall not apply to the credit allowed by this section.

SEC. 2.

 Section 23647 is added to the Revenue and Taxation Code, to read:

23647.
 (a) For each taxable year beginning on or after January 1, 2020, there shall be allowed as a credit against the “tax,” as defined in Section 23036, an amount equal to the total amount paid or incurred during the taxable year by a qualified taxpayer for eligible expenses.
(b) For purposes of this section:
(1) “Eligible expenses” means the total amount expended by the qualified taxpayer for the payment of development impact fees and connection fees applied to newly constructed single-family and multifamily homes.
(2) “Qualified taxpayer” means a homebuilder or developer engaged in the construction of new single-family and multifamily homes in the state.
(c) Section 41 shall not apply to the credit allowed by this section.

SEC. 3.

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