BILL NUMBER: AB 952	CHAPTERED  08/31/01

	CHAPTER  212
	FILED WITH SECRETARY OF STATE  AUGUST 31, 2001
	APPROVED BY GOVERNOR  AUGUST 30, 2001
	PASSED THE ASSEMBLY  AUGUST 20, 2001
	PASSED THE SENATE  JULY 21, 2001
	AMENDED IN SENATE  JULY 17, 2001
	AMENDED IN ASSEMBLY  MAY 31, 2001
	AMENDED IN ASSEMBLY  APRIL 26, 2001
	AMENDED IN ASSEMBLY  APRIL 16, 2001

INTRODUCED BY   Assembly Member Kelley

                        FEBRUARY 23, 2001

   An act to amend Section 17138 of the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 952, Kelley.  Income taxes:  exclusion.
   The Personal Income Tax Law provides an exclusion from gross
income for any amount received as a rebate from a local water agency
or supplier for the purchase of a water conservation water closet.
   This bill would allow the exclusion with respect to vouchers
received from energy agencies or suppliers, and would extend the
exclusion to energy efficient clothes washers, as provided, and
plumbing devices, as specified.
   This bill would take effect immediately as a tax levy.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 17138 of the Revenue and Taxation Code is
amended to read:
   17138.  Any amount received as a rebate or voucher from a local
water or energy agency or supplier for any expenses the taxpayer paid
or incurred for the purchase or installation of any of the following
devices shall be treated as a refund or price adjustment of amounts
payable to that water or energy agency or supplier:
   (a) A water conservation water closet that meets the performance
standards of American National Standards Institute Standard A112.19.2
and uses no more than 1.6 gallons per flush, or for the installation
of a urinal that meets the performance standards of American
National Standards Institute Standard A112.19.2 and uses no more than
one gallon per flush.
   (b) A water and energy efficient clothes washer that meets a 1.04
modified energy factor and 9.5 water use efficiency factor as
determined by the State Energy Resources and Conservation Commission.

   (c) A plumbing device necessary to serve the recycled water uses
described in Sections 13553 and 13554 of the Water Code.
  SEC. 2.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.