SECTION 1.
(a) On or before April 1, 2008, the San Joaquin Unified Air Pollution Control District and the South Coast Air Quality Management District, in consultation with any interested parties identified by the air districts, and out of existing funds available to the district, may prepare a study and report to the Legislature on the dollar amount that would be appropriate to authorize a tax credit under the Personal Income Tax Law and the Corporation Tax Law for the purchase or replacement of qualified property that is placed into service. (b) For purposes of this section, “qualified property” means:
(1) Machinery or equipment located within California that reduces air pollution from any source.
(2) The reduction in air pollution is not required by any rule or legally enforceable measure.
(3) Is purchased and placed into service at least two years before the reduction in air pollution is required by any rule or legally enforceable measure.