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AB-274 Taxation: credit: brownfield cleanup.(2007-2008)

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AB274:v98#DOCUMENT

Amended  IN  Assembly  March 15, 2007

CALIFORNIA LEGISLATURE— 2007–2008 REGULAR SESSION

Assembly Bill
No. 274

Introduced  by  Assembly Member Coto

February 09, 2007

An act to add Sections 17053.15 and 23615 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


AB 274, as amended, Coto. Taxation: credit: brownfield cleanup.
The Personal Income Tax Law and the Corporation Tax Law authorize various credits against the taxes imposed by those laws.
This bill would authorize a credit against those taxes for a qualified “brownfield” property owner, as specified, for each taxable year beginning on or after January 1, 2007, in an amount equal to the costs paid or incurred to clean up a polluted brownfield property, as defined, located in California to a satisfactory level, as evidenced by a written certification of completion, as defined.
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 17053.15 is added to the Revenue and Taxation Code, to read:

17053.15.
 (a) For each taxable year beginning on or after January 1, 2007, there shall be allowed to a qualified “brownfield” property owner, who operates a small business, as a credit against the “net tax,” as defined in Section 17039, an amount equal to the costs paid or incurred during the taxable year to clean up a polluted “brownfield” property, located in California, to a satisfactory level, as evidenced by a written certification of completion.
(b) For purposes of this section:

(1)“Brownfield property” means a property as defined in paragraph (2) of subdivision (a) of Section 25395.20 of the Health and Safety Code.

(1) “Brownfield property” means either of the following:
(A) A property as defined in Section 44504.1 of the Health and Safety Code.
(B) A property that is contaminated by petroleum.
(2) “Written certification of completion” means an evaluation by the Department of Toxic Substances Control of the effectiveness of a removal or remedial action conducted by a responsible party, to reduce or eliminate actual or potential public health and environmental threats posed by a hazardous substance release site if the action itself is not the subject of oversight by the Department of Toxic Substances Control.
(3) “Small business” has the same meaning as set forth in subdivision (d) of Section 14837 of the Government Code.
(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 year, and succeeding years if necessary, until the credit is exhausted.

SEC. 2.

 Section 23615 is added to the Revenue and Taxation Code, to read:

23615.
 (a) For each taxable year beginning on or after January 1, 2007, there shall be allowed to a qualified “brownfield” property owner, who operates a small business, as a credit against the “tax,” as defined in Section 23036, an amount equal to the costs paid or incurred during the taxable year to clean up a polluted “brownfield” property, located in California, to a satisfactory level, as evidenced by a written certification of completion.
(b) For purposes of this section:

(1)“Brownfield property” means a property as defined in paragraph (2) of subdivision (a) of Section 25395.20 of the Health and Safety Code.

(1) “Brownfield property” means either of the following:
(A) A property as defined in Section 44504.1 of the Health and Safety Code.
(B) A property that is contaminated by petroleum.
(2) “Written certification of completion” means an evaluation by the Department of Toxic Substances Control of the effectiveness of a removal or remedial action conducted by a responsible party, to reduce or eliminate actual or potential public health and environmental threats posed by a hazardous substance release site if the action itself is not the subject of oversight by the Department of Toxic Substances Control.
(3) “Small business” has the same meaning as set forth in subdivision (d) of Section 14837 of the Government Code.
(c) In the case where the credit allowed by this section exceeds the “tax,” the excess may be carried over to reduce the “tax” in the following year, and succeeding years if necessary, until the credit is exhausted.

SEC. 3.

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