BILL NUMBER: AB 1159	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member V. Manuel Perez

                        FEBRUARY 27, 2009

   An act to add and repeal Sections 17053.71 and 23671 of the
Revenue and Taxation Code, relating to taxation, to take effect
immediately, tax levy.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1159, as introduced, V. Manuel Perez. Income and corporation
tax credits: sales and use taxes: qualified property.
   The Personal Income Tax Law and the Corporation Tax Law authorize
various credits against the taxes imposed by those laws.
   This bill would, for taxable years beginning on or after January
1, 2009, and before January 1, 2016, allow a credit in an amount
equal to the sales and use tax paid or incurred for the purchase of
qualified property, as defined.
   This bill would take effect immediately as a tax levy.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


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

  SECTION 1.  This act shall be known and may be cited as the
California Cleantech Advantage Act of 2009.
  SEC. 2.  (a) The Legislature finds and declares all of the
following:
   (1) That the enactment of Assembly Bill 32 (Chapter 488, Statutes
of 2006) made California a national and global policy leader in the
effort to reduce greenhouse gases that pose serious threats to our
natural environment and to our residents' health and safety.
   (2) That the prospect of global warming is very real and may
already be impacting our climate and ecosystems.
   (3) That there is an urgent need to develop, market, and use
products, equipment, and services that reduce the formation of
greenhouse gases.
   (b) The Legislature further finds and declares:
   (1) That the level of national and global concern over greenhouse
gas emissions has begun to focus American technological research and
investment on developing industrial and consumer products and
processes that produce zero or ultra-low emissions of carbon dioxide,
the primary greenhouse gas.
   (2) It is in the best interest of this state to expeditiously
foster a competitive cleantech industry in California by offering
investors financial incentives to spur cleantech research and
development, production, and utilization of environmentally clean
products.
   (3) That Cleantech Venture reached eight billion four hundred
million dollars ($8,400,000,000) in 2008.
   (4) That growing cleantech investment will help create as many as
114,000 new, high-paying, skilled jobs, improve the state's air and
water quality, and offer businesses reliable and affordable sources
of alternative energy.
   (c) Therefore, it is the intent of the Legislature to enact and
enhance targeted tax credits to increase investment in cleantech
activities and renewable energy, as well as maintain and enhance this
state's competitive lead in attracting investment capital, clean
industry, and high-paying, skilled jobs.
  SEC. 3.  Section 17053.71 is added to the Revenue and Taxation
Code, to read:
   17053.71.  (a) For each taxable year beginning on or after January
1, 2009, and before January 1, 2016, there shall be allowed as a
credit against the "net tax," as defined by Section 17039, an amount
equal to the sales and use tax paid or incurred during the taxable
year by the taxpayer for the taxpayer's purchase of qualified
property.
   (b) For purposes of this section, "qualified property" means any
property used in an enterprise zone, targeted tax area, or a local
military base realignment area for the production or generation of
renewable energy.
   (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 the four succeeding years if necessary,
until the credit is exhausted.
   (d) This section shall remain in effect only until December 1,
2016, and as of that date is repealed.
  SEC. 4.  Section 23671 is added to the Revenue and Taxation Code,
to read:
   23671.  (a) For each taxable year beginning on or after January 1,
2009, and before January 1, 2016, there shall be allowed as a credit
against the "tax," as defined by Section 23036, an amount equal to
the sales and use tax paid or incurred during the taxable year by the
taxpayer for the taxpayer's purchase of qualified property.
   (b) For purposes of this section, "qualified property" means any
property used in an enterprise zone, targeted tax area, or a local
military base realignment area for the production or generation of
renewable energy.
   (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 the four succeeding years if necessary, until the
credit is exhausted.
   (d) This section shall remain in effect only until December 1,
2016, and as of that date is repealed.
  SEC. 5.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.