AB 6, as introduced, Gorell. Income tax credits: emergency standby generators.
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 each taxable year beginning on or after January 1, 2012, and before January 1, 2017, in an amount equal to 50% of the amount paid or incurred during the taxable year, up to $2,500, for the purchase and installation of an emergency standby generator, as defined, at a service station, as defined, located in this state.
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:
It is the intent of this act to provide an incentive
2for a taxpayer that operates a service station to purchase and install
3an emergency standby generator at a service station located in this
4state in order for the service station to be able to continue to
P2 1maintain electrical power to provide services to the public during
2power outages.
Section 17053.88 is added to the Revenue and Taxation
4Code, to read:
(a) For each taxable year beginning on or after
6January 1, 2012, and before January 1, 2017, there shall be allowed
7as a credit against the “net tax,” as defined in Section 17039, an
8amount equal to 50 percent of the amount paid or incurred during
9the taxable year for the purchase and installation of an emergency
10standby generator at a service station located in this state, not to
11exceed two thousand five hundred dollars ($2,500) per emergency
12standby generator.
13(b) For purposes of this section:
14(1) “Emergency standby generator” means an electrical
15generator that is rated by the manufacturer to generate at least 30
16kilowatts of electricity and whose sole function is to
automatically
17provide electric power when electric power from a utility service
18is interrupted.
19(2) “Gross receipts” shall have the same meaning as set forth
20in Section 25120.
21(3) “Service station” means an establishment that offers for sale
22or sells to the public, gasoline or other fuel to power motor vehicles
23and is owned by a taxpayer with worldwide gross receipts of less
24than one million dollars ($1,000,000) for any taxable year for
25which the credit authorized by this section is claimed. The gross
26receipts of any trades or businesses that are treated as related under
27Section 267, 318, or 707 of the Internal Revenue Code shall be
28aggregated for purposes of determining worldwide gross receipts
29under this paragraph.
30(c) The depreciable basis of any emergency standby generator
31shall be reduced by the amount of any
credit allowable under this
32section.
33(d) If an emergency standby generator for which a credit is
34allowed pursuant to this section is thereafter sold, returned to the
35vendor, or otherwise removed from service by the taxpayer within
36one year from the date the emergency standby generator was placed
37in service, the amount of credit allowed by this section for the
38purchase and installation of that emergency standby generator shall
39be recaptured by adding that credit amount to the net tax of the
P3 1taxpayer for the taxable year in which the emergency standby
2generator is sold or removed.
3(e) In the case where the credit allowed by this section exceeds
4the “net tax,” the excess may be carried over to reduce the “net
5tax” in the following year, and the seven succeeding years if
6necessary, until the credit is exhausted.
7(f) This section shall remain in effect only until December 1,
82017, and as of that date is repealed.
Section 23689 is added to the Revenue and Taxation
10Code, to read:
(a) For each taxable year beginning on or after January
121, 2012, and before January 1, 2017, there shall be allowed as a
13credit against the “tax,” as defined in Section 23036, an amount
14equal to 50 percent of the amount paid or incurred during the
15taxable year for the purchase and installation of an emergency
16standby generator at a service station located in this state, not to
17exceed two thousand five hundred dollars ($2,500) per emergency
18standby generator.
19(b) For purposes of this section:
20(1) “Emergency standby generator” means an electrical
21generator that is rated by the manufacturer to generate at least 30
22kilowatts of electricity and whose sole function is to automatically
23
provide electric power when electric power from a utility service
24is interrupted.
25(2) “Gross receipts” shall have the same meaning as set forth
26in Section 25120.
27(3) “Service station” means an establishment that offers for sale
28or sells to the public, gasoline or other fuel to power motor vehicles
29and is owned by a taxpayer with worldwide gross receipts of less
30than one million dollars ($1,000,000) for any taxable year for
31which the credit authorized by this section is claimed. The gross
32receipts of any trades or businesses that are treated as related under
33Section 267, 318, or 707 of the Internal Revenue Code shall be
34aggregated for purposes of determining worldwide gross receipts
35under this paragraph.
36(c) The depreciable basis of any emergency standby generator
37shall be reduced by the amount of any credit allowable
under this
38section.
39(d) If an emergency standby generator for which a credit is
40allowed pursuant to this section is thereafter sold, returned to the
P4 1vendor, or otherwise removed from service by the taxpayer within
2one year from the date the emergency standby generator was placed
3in service, the amount of credit allowed by this section for the
4purchase and installation of that emergency standby generator shall
5be recaptured by adding that credit amount to the tax of the
6taxpayer for the taxable year in which the emergency standby
7generator is sold or removed.
8(e) In the case where the credit allowed by this section exceeds
9the “tax,” the excess may be carried over to reduce the “tax” in
10the following year, and the seven succeeding years if necessary,
11until the credit is exhausted.
12(f) This section shall remain in
effect only until December 1,
132017, and as of that date is repealed.
This act provides for a tax levy within the meaning
15of Article IV of the Constitution and shall go into immediate effect.
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