Today's Law As Amended


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AB-1139 Personal income taxes: credit: turf removal.(2015-2016)



As Amends the Law Today


SECTION 1.
 The Legislature finds and declares all of the following:
(a) California is currently enduring the fourth year of one of the worst droughts in the state’s history.
(b) It is estimated that landscaping accounts for 60 percent of all water consumed by residential customers. California lawns cover more than 300,000 acres and consume more than 1.5 million acre-feet of water per year.
(c) Californians have already begun to minimize lawn watering by replacing conventional lawns with water-saving and drought-resistant plants or artificial grass. These landscaping alternatives are dependable tools for water conservation.
(d) In light of severe drought, California has an interest in encouraging consumers to decrease water usage. Establishing a state tax credit for the removal and replacement of conventional grass landscapes will incentivize water conservation.

SEC. 2.

 Section 17053.98 is added to the Revenue and Taxation Code, to read:

17053.98.
 (a) For each taxable year beginning on or after January 1, 2015, there shall be allowed a credit against the “net tax,” as defined by Section 17039, to a qualified taxpayer in an amount equal to two dollars ($2) per square foot of conventional lawn removed from the qualified taxpayer’s qualified real property, not to exceed fifty thousand dollars ($50,000) per taxable year.
(b) For the purposes of this section, the following definitions shall apply:
(1) “Lawn replacement program” means a local water agency program that offers incentives to customers encouraging the replacement of conventional lawns with artificial lawns, drought-resistant plants, or other water-efficient landscaping.
(2) “Multifamily residential real property” means any real property that is improved with, or consisting of, a building containing more than one unit that is intended for human habitation, or any mixed residential-commercial buildings or portions thereof that are intended for human habitation. Multifamily residential real property includes residential hotels but does not include hotels and motels that are not residential hotels.
(3) “Qualified real property” means either multifamily residential real property or single-family real property in this state.
(4) “Qualified taxpayer” means a person that owns qualified real property that is participating in a lawn replacement program.
(5) “Single-family residential real property” means any real property that is improved with, or consisting of, a building containing not more than one unit that is intended for human habitation.
(c) Section 41 does 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 Constitution and shall go into immediate effect.