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AB-1873 Personal Income Tax Law: Corporation Tax Law: credits: electric vehicle charging stations.(2021-2022)

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Date Published: 02/08/2022 09:00 PM
AB1873:v99#DOCUMENT


CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill
No. 1873

Introduced by Assembly Member Boerner Horvath

February 08, 2022

An act to add and repeal Sections 17053.90 and 23690 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 1873, as introduced, Boerner Horvath. Personal Income Tax Law: Corporation Tax Law: credits: electric vehicle charging stations.
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, 2025, and before January 1, 2030, 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, subject to certain maximum credit amounts. The bill would define various terms for these purposes. The bill would repeal these provisions as of December 1, 2030.
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.
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 17053.90 is added to the Revenue and Taxation Code, to read:

17053.90.
 (a) (1) For each taxable year beginning on or after January 1, 2025, and before January 1, 2030, 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 electric vehicle supply equipment or direct current fast chargers, or both, in a covered multifamily dwelling, 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 electric vehicle supply equipment installed during the taxable year.
(B) Two thousand five hundred dollars ($2,500) per direct current fast charger installed during the taxable year.
(b) For purposes of this section the following definitions apply:
(1) “Covered multifamily dwellings” has the same meaning as defined in Section 12955.1.1 of the Government Code.
(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.
(3) (A) “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.
(B) Notwithstanding subparagraph (A), “qualified costs” shall not include amounts paid or incurred to the extent of rebates, vouchers, reimbursements, or other financial incentives received by the qualified taxpayer from the Energy Commission, including through the California Electric Vehicle Infrastructure Project (CALeVIP).
(4) “Qualified taxpayer” means a taxpayer who is the owner or developer of a covered multifamily dwelling in this state. A taxpayer who owns a proportional share of a covered multifamily dwelling 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, 2030, 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. 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, 2025, and before January 1, 2030, 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 electric vehicle supply equipment or direct current fast chargers, or both, in a covered multifamily dwelling, 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 electric vehicle supply equipment installed during the taxable year.
(B) Two thousand five hundred dollars ($2,500) per direct current fast charger installed during the taxable year.
(b) For purposes of this section the following definitions apply:
(1) “Covered multifamily dwellings” has the same meaning as defined in Section 12955.1.1 of the Government Code.
(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.
(3) (A) “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.
(B) Notwithstanding subparagraph (A), “qualified costs” shall not include amounts paid or incurred to the extent of rebates, vouchers, reimbursements, or other financial incentives received by the qualified taxpayer from the Energy Commission, including through the California Electric Vehicle Infrastructure Project (CALeVIP).
(4) “Qualified taxpayer” means a taxpayer who is the owner or developer of a covered multifamily dwelling in this state. A taxpayer who owns a proportional share of a covered multifamily dwelling 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, 2030, 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. 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, 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 direct current fast chargers, 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 direct current fast charger electric vehicle supply equipment in a multifamily dwelling, 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. 4.

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