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AB-113 Income taxes: credits: electric vehicles.(2021-2022)

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Date Published: 04/07/2021 09:00 PM
AB113:v97#DOCUMENT

Amended  IN  Assembly  April 07, 2021
Amended  IN  Assembly  March 25, 2021

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 113


Introduced by Assembly Member Boerner Horvath

December 17, 2020


An act to amend Section 18941.10 of, and to add Section 18941.12 to, the Health and Safety Code, and to add and repeal Sections 17053.90 and 23690 of the Revenue and Taxation Code, relating to transportation electrification. taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 113, as amended, Boerner Horvath. Transportation electrification: electric vehicles: building standards: tax credits. Income taxes: credits: electric vehicles.

(1)Existing law, the California Building Standards Law, establishes the California Building Standards Commission (the commission) within the Department of General Services. Existing law requires the commission to approve and adopt building standards and to codify those standards in the California Building Standards Code, which is required to be published once every 3 years.

Existing law, commencing with the triennial edition of the California Building Standards Code adopted after January 1, 2024, requires the commission to adopt, approve, codify, and publish mandatory building standards for the installation of electric vehicle charging infrastructure for parking spaces in multifamily dwellings and nonresidential development, as provided. Existing law requires the Department of Housing and Community Development (HCD) to propose mandatory building standards for the installation of future electric vehicle charging infrastructure for parking spaces in multifamily dwellings and submit the proposed mandatory building standards to the commission for consideration. Existing law requires the commission and HCD to actively consult with interested parties in proposing and adopting mandatory building standards under these provisions, as provided.

This bill, commencing with the next triennial edition of the California Building Standards Code after January 1, 2022, would revise these requirements to, instead, require the commission to adopt, approve, codify, and publish mandatory building standards for the electric vehicle charging stations, as defined, in multifamily dwellings and nonresidential development. The bill would also revise these requirements to, instead, require HCD to propose mandatory building standards for the installation of electric vehicle charging stations with Level 2 or higher electric vehicle supply equipment in multifamily dwellings. The bill would additionally require the Division of the State Architect to propose mandatory building standards for the installation of electric vehicle charging stations with Level 2 or higher electric vehicle supply equipment in new and existing school buildings. The bill would require the commission, HCD, and the Division of the State Architect to additionally consult with the State Air Resources Board and the State Energy Resources Conservation and Development Commission in proposing and adopting mandatory building standards under these provisions. The bill would require the commission, HCD, and the Division of the State Architect to review the building standards proposed and adopted under the bill’s provisions every triennial code cycle and update those building standards based on that review as necessary.

The bill would also require the commission, HCD, and the Division of the State Architect to develop and adopt, or propose the adoption of, building standards with respect to the installation of electric vehicle charging stations in new construction and in existing residential and nonresidential buildings when other construction, retrofits, or repair action is taking place, as provided, and to update those building standards each triennial code cycle.

Existing law, the State Housing Law, among other things, generally requires cities and counties to enforce within their jurisdiction the provisions of the California Building Standards Code pertaining to residential structures. A violation of the State Housing Law, or the building standards or regulations adopted under its provisions, is a misdemeanor.

By adding to the duties of local officials with respect to enforcing building standards, and expanding the scope of a crime, this bill would impose a state-mandated local program.

(2)The

The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.
This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2021, and before January 1, 2026, in an amount equal to 40% of the amount paid or incurred in qualified costs by a qualified taxpayer during the taxable year for the installation of specified electric vehicle supply equipment in a covered multifamily dwelling or covered nonresidential building, subject to specified maximum credit amounts. The bill would define various terms for these purposes. The bill would repeal these provisions as of December 1, 2026.
Existing law requires that any bill introduced on or after January 1, 2020, that would authorize certain tax expenditures, as defined, or tax exemptions contain, among other things, specific goals, purposes, and objectives that the tax expenditure or exemption will achieve, detailed performance indicators, and data collection requirements.
This bill would include additional information required for any bill authorizing a new tax expenditure.

(3)The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that with regard to certain mandates no reimbursement is required by this act for a specified reason.

With regard to any other mandates, this bill would provide that, if the Commission on State Mandates determines that the bill contains costs so mandated by the state, reimbursement for those costs shall be made pursuant to the statutory provisions noted above.

This bill would take effect immediately as a tax levy.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: YESNO  

The people of the State of California do enact as follows:


SECTION 1.

The Legislature finds and declares all of the following:

(a)California’s greenhouse gas (GHG) emissions must be reduced to at least 40 percent below the statewide GHG emissions limit no later than December 31, 2030, pursuant to Section 38566 of the Health and Safety Code.

(b)Transportation emissions are the largest source of GHG emissions in California. Electrification of the transportation system is a key strategy in reducing transportation emissions. In order to support 1,500,000 zero-emission vehicles (ZEVs) by the year 2025, and 5,000,000 ZEVs by 2030, California has set a target to provide 250,000 electric vehicle charging stations, including 10,000 direct current fast chargers.

(c)California’s Green Building Standards (CALGreen) Code (Part 11 of Title 24 of the California Code of Regulations) requires low-cost charging infrastructure in new construction to support future installation of Level 2 electric vehicle charging stations. Since new buildings represent a very small percent of total buildings statewide, it is essential that building standards are expanded to include cost-effective provisions to install charging infrastructure in existing buildings. Additionally, actual electric vehicle charging stations are needed to meet the demand for electric vehicle recharging.

(d)The CALGreen Code requirement for electric vehicle charging infrastructure in new construction should be expanded to require installation of electric vehicle charging stations with Level 2 or higher electric vehicle supply equipment in both new construction and existing multifamily dwellings, schools, and nonresidential buildings. Installation of electric vehicle charging stations is most cost effective when it is concurrent with other construction on the parking spaces or the electric supply of new or existing buildings.

SEC. 2.Section 18941.10 of the Health and Safety Code is amended to read:
18941.10.

(a)For purposes of this section:

(1)“Electric vehicle charging station” means one or more electric vehicle charging spaces served by an electric vehicle charger or other charging equipment allowing the charging of electric vehicles. An electric vehicle charging station shall be considered a vehicular parking space.

(2)“Electric vehicle supply equipment” means the conductors, including the underground, grounded, and equipment grounding conductors, and the electric vehicle connectors, attachment plugs, and other fittings, devices, power outlets, or apparatus installed specifically for the purpose of transferring energy between the premises wiring and the electric vehicle.

(b)(1)The commission shall, commencing with the next triennial edition of the California Building Standards Code (Title 24 of the California Code of Regulations) adopted after January 1, 2022, adopt, approve, codify, and publish mandatory building standards for the installation of electric vehicle charging stations in multifamily dwellings and nonresidential development. The building standards adopted, approved, codified, and published pursuant to this section shall apply to new construction and cost-effective trigger points during retrofits to existing buildings on and after the effective date of those building standards.

(2)For purposes of paragraph (1), notwithstanding subdivision (d) of Section 17922, the Department of Housing and Community Development shall propose mandatory building standards for the installation of electric vehicle charging stations with Level 2 or higher electric vehicle supply equipment in multifamily dwellings. The Department of Housing and Community Development shall submit the proposed mandatory building standards to the commission for consideration.

(3)For purposes of paragraph (1), the Division of the State Architect shall propose mandatory building standards for the installation of electric vehicle charging stations with Level 2 or higher electric vehicle supply equipment in new and existing school buildings and submit the proposed mandatory building standards to the commission for consideration.

(c)(1)In proposing and adopting mandatory building standards under this section, the Department of Housing and Community Development, the Division of the State Architect, and the commission shall use Sections 4.106.4 and 5.106.5.3 of the California Green Building Standards Code (Part 11 of Title 24 of the California Code of Regulations) as the baseline for the mandatory building standards.

(2)In proposing and adopting mandatory building standards under this section, the Department of Housing and Community Development, the Division of the State Architect, and the commission shall consult with interested parties, including, but not limited to, the State Air Resources Board, the State Energy Resources Conservation and Development Commission, investor-owned utilities, municipal utilities, vehicle and electric vehicle supply equipment manufacturers, local building officials, commercial building and apartment owners, and the building industry.

(d)The Department of Housing and Community Development, the Division of the State Architect, and the commission shall review the building standards proposed and adopted pursuant to this section every triennial code cycle pursuant to Section 18942, and update those building standards based on that review as necessary, to ensure that the building standards support statewide needs for electric vehicle charging stations that align with the state’s zero-emission vehicle targets.

SEC. 3.Section 18941.12 is added to the Health and Safety Code, to read:
18941.12.

The commission, the Department of Housing and Community Development, and the Division of the State Architect shall do all of the following:

(a)Develop and adopt, or propose the adoption of, building standards that take advantage of the reduced cost of installing electric vehicle charging stations in new construction and in existing residential and nonresidential buildings when other construction, retrofits, or repair action is taking place so that electric vehicle charging stations can be made more widely available in a cost-effective manner.

(b)Invite the participation of relevant public agencies and the public at large in the development of building standards in accordance with this section.

(c)Review and revise the building standards applicable to electric vehicle charging infrastructure each triennial code cycle pursuant to Section 18942.

SEC. 4.SECTION 1.

 Section 17053.90 is added to the Revenue and Taxation Code, to read:

17053.90.
 (a) (1) For each taxable year beginning on or after January 1, 2021, and before January 1, 2026, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, an amount equal to 40 percent of the amount paid or incurred in qualified costs by a qualified taxpayer during the taxable year for the installation of Level 2 or higher electric vehicle supply equipment or direct current fast chargers, or both, in a covered multifamily dwelling or covered nonresidential building, subject to paragraph (2).
(2) A credit allowed to a qualified taxpayer shall not exceed the following amounts:
(A) Five hundred dollars ($500) per Level 2 or higher electric vehicle supply equipment installed during the taxable year.
(B) Two thousand five hundred dollars ($2,500) per direct current fast chargers installed during the taxable year.
(b) For purposes of this section:
(1) “Covered multifamily dwelling” has the same meaning as defined in Section 12955.1.1 of the Government Code.
(2) “Covered nonresidential building” means any building that is within Occupancy Groups A, B, E, F, H, I, M, S, or U, as described in Chapter 3 of Part 2 of the California Building Standards Code (Title 24 of the California Code of Regulations), as that chapter read as of January 1, 2021.
(3) “Electric vehicle supply equipment” means the conductors, including the underground, grounded, and equipment grounding conductors, and the electric vehicle connectors, attachment plugs, and other fittings, devices, power outlets, or apparatus installed specifically for the purpose of transferring energy between the premises wiring and the electric vehicle.
(4) “Qualified costs” means the amounts paid or incurred for the acquisition of electric vehicle supply equipment, the installation of an outlet or wiring to the panel, panel upgrades, and labor.
(5) “Qualified taxpayer” means a taxpayer who that is the owner or developer of a covered multifamily dwelling or a covered nonresidential building in this state. A taxpayer who that owns a proportional share of a covered multifamily dwelling or a covered nonresidential building in this state may claim the credit allowed by this section in an amount that is proportionate to that taxpayer’s share of the qualified costs.
(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 the succeeding six 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) This section shall remain in effect only until December 1, 2026, and as of that date is repealed. However, any unused credit may continue to be carried forward, as provided in subdivision (c), until the credit is exhausted.

SEC. 5.SEC. 2.

 Section 23690 is added to the Revenue and Taxation Code, to read:

23690.
 (a) (1) For each taxable year beginning on or after January 1, 2021, and before January 1, 2026, there shall be allowed as a credit against the “tax,” as defined in Section 23036, an amount equal to 40 percent of the amount paid or incurred in qualified costs by a qualified taxpayer during the taxable year for the installation of Level 2 or higher electric vehicle supply equipment or direct current fast chargers, or both, in a covered multifamily dwelling or covered nonresidential building, subject to paragraph (2).
(2) A credit allowed to a qualified taxpayer shall not exceed the following amounts:
(A) Five hundred dollars ($500) per Level 2 or higher electric vehicle supply equipment installed during the taxable year.
(B) Two thousand five hundred dollars ($2,500) per direct current fast chargers installed during the taxable year.
(b) For purposes of this section:
(1) “Covered multifamily dwelling” has the same meaning as defined in Section 12955.1.1 of the Government Code.
(2) “Covered nonresidential building” means any building that is within Occupancy Groups A, B, E, F, H, I, M, S, or U, as described in Chapter 3 of Part 2 of the California Building Standards Code (Title 24 of the California Code of Regulations), as that chapter read as of January 1, 2021.
(3) “Electric vehicle supply equipment” means the conductors, including the underground, grounded, and equipment grounding conductors, and the electric vehicle connectors, attachment plugs, and other fittings, devices, power outlets, or apparatus installed specifically for the purpose of transferring energy between the premises wiring and the electric vehicle.
(4) “Qualified costs” means the amounts paid or incurred for the acquisition of electric vehicle supply equipment, the installation of an outlet or wiring to the panel, panel upgrades, and labor.
(5) “Qualified taxpayer” means a taxpayer who that is the owner or developer of a covered multifamily dwelling or a covered nonresidential building in this state. A taxpayer who that owns a proportional share of a covered multifamily dwelling or a covered nonresidential building in this state may claim the credit allowed by this section in an amount that is proportionate to that taxpayer’s share of the qualified costs.
(c) In the case where the credit allowed by this section exceeds the “tax,” the excess may be carried over to reduce the “net tax” in the following taxable year, and the succeeding six 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) This section shall remain in effect only until December 1, 2026, and as of that date is repealed. However, any unused credit may continue to be carried forward, as provided in subdivision (c), until the credit is exhausted.

SEC. 6.SEC. 3.

 For purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares the following with respect to Sections 17053.90 and 23690 of the Revenue and Taxation Code, as added by this act, hereafter referred to as “the tax credits:”
(a) The specific goals, purposes, and objectives that the tax credits will achieve are as follows:
(1) It is the intent of the Legislature in providing these tax credits to support transportation electrification by offsetting a part of the installation cost.
(2) One of the main barriers to zero-emission vehicle adoption is limited access to charging stations.
(3) Current zero-emission infrastructure cannot support the growing population of zero-emission vehicles, and long-term, holistic infrastructure planning and investment is critical to giving consumers confidence in zero-emission vehicles and to expand zero-emission vehicles to more market segments, including heavy-duty applications.
(4) Charging infrastructure is needed to power the vehicles and support the zero-emission vehicle market. As of December 2019, California has 22,233 electric vehicle charging outlets, including 3,355 direct current fast chargers (DCFCs), at over 5,674 public stations throughout the state. The state’s goal is to have 1,500,000 zero-emission vehicles on the road and 250,000 charging outlets, including 10,000 DCFCs, as well as 5,000,000 zero-emission vehicles by 2030. The magnitude and speed of effort needed to achieve these goals is unprecedented.
(5) Convenient access to battery electric vehicle charging is a key barrier to the adoption of zero-emission vehicles, and light-duty zero-emission infrastructure is not yet keeping up with zero-emission vehicle market growth. Zero-emission vehicle infrastructure at a variety of locations, such as at residences, workplaces, highway rest stops, and shopping centers, is anticipated to enable a larger share of vehicle travel to be zero-emission and to provide more equitable access to clean transportation modes.
(6) The tax credits for installation of Level 2 or higher electric vehicle supply equipment in a multifamily dwelling or nonresidential building, as allowed by this act, will contribute to an increase in installation of charging infrastructure.
(b) Detailed performance indicators for the Legislature to use in determining whether the tax credits allowed by this act meet those goals, purposes, and objectives are as follows:
(1) The number of taxpayers claiming the tax credits.
(2) The ZIP CODES in which electric vehicle supply equipment is installed.
(3) The amount of electric vehicle supply equipment that is installed.
(c) The data collection requirements for determining whether the tax credits are meeting, failing to meet, or exceeding those specific goals, purposes, and objectives are as follows:
(1) The Legislative Analyst’s Office shall review the effectiveness of the tax credits and may request information from the Franchise Tax Board and any state governmental entity with authority relating to electric vehicle supply equipment.
(2) (A) The Franchise Tax Board shall provide any data requested by the Legislative Analyst’s Office pursuant to this subdivision.
(B) The disclosure provisions of this paragraph shall be treated as an exception to Section 19542 of the Revenue and Taxation Code under Article 2 (commencing with 19542) of Chapter 7 of Part 10.2 of Division 2 of the Revenue and Taxation Code.
SEC. 7.

No reimbursement is required by this act pursuant to Section 6 of Article XIII B of the California Constitution for certain costs that may be incurred by a local agency or school district because, in that regard, this act creates a new crime or infraction, eliminates a crime or infraction, or changes the penalty for a crime or infraction, within the meaning of Section 17556 of the Government Code, or changes the definition of a crime within the meaning of Section 6 of Article XIII B of the California Constitution.

However, if the Commission on State Mandates determines that this act contains other costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.

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.