BILL NUMBER: AB 1968	CHAPTERED  09/24/02

	CHAPTER  843
	FILED WITH SECRETARY OF STATE  SEPTEMBER 24, 2002
	APPROVED BY GOVERNOR  SEPTEMBER 24, 2002
	PASSED THE ASSEMBLY  AUGUST 31, 2002
	PASSED THE SENATE  AUGUST 29, 2002
	AMENDED IN SENATE  JUNE 18, 2002
	AMENDED IN ASSEMBLY  MARCH 20, 2002

INTRODUCED BY   Assembly Member Nation

                        FEBRUARY 14, 2002

   An act to add Sections 17138.1 and 24308.1 to the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1968, Nation.  Income taxes:  exclusions:  energy conservation
rebates.
   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 an exclusion from gross income under both
the Personal Income Tax Law and the Bank and Corporation Tax Law with
respect to vouchers, rebates, or other financial incentives received
from the California Energy Commission, the Public Utilities
Commission, or a local publicly owned utility, as defined, for the
purchase or installation of specified energy production systems.
   This bill would take effect immediately as a tax levy.


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


  SECTION 1.  Section 17138.1 is added to the Revenue and Taxation
Code, to read:
   17138.1.  Gross income does not include any amount received as a
rebate, voucher, or other financial incentive issued by the
California Energy Commission, the Public Utility Commission, or a
local publicly owned electric utility, as defined in subdivision (d)
of Section 9604 of the Public Utilities Code, for any expenses paid
or incurred by a taxpayer for the purchase or installation of any of
the following devices:
   (a) A thermal system as defined in Section 25600 of the Public
Resources Code.
   (b) A solar system as defined in Section 25600 of the Public
Resources Code.
   (c) A wind energy system device that produces electricity.
   (d) A fuel cell generating system, as described in the California
Energy Commission's Emerging Renewable Resources Account Guidebook,
that produces electricity.
  SEC. 2.  Section 24308.1 is added to the Revenue and Taxation Code,
to read:
   24308.1.  Gross income does not include any amount received as a
rebate, voucher, or other financial incentive issued by the
California Energy Commission, the Public Utility Commission, or a
local publicly owned electric utility, as defined in subdivision (d)
of Section 9604 of the Public Utilities Code, for any expenses paid
or incurred by a taxpayer for the purchase or installation of any of
the following devices:
   (a) A thermal system as defined in Section 25600 of the Public
Resources Code.
   (b) A solar system as defined in Section 25600 of the Public
Resources Code.
   (c) A wind energy system device that produces electricity.
   (d) A fuel cell generating system, as described in the California
Energy Commission's Emerging Renewable Resources Account Guidebook,
that produces electricity.
  SEC. 3.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.