BILL NUMBER: AB 6	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Gorell

                        DECEMBER 3, 2012

   An act to add and repeal Sections 17053.88 and 23689 of the
Revenue and Taxation Code, relating to taxation, to take effect
immediately, tax levy.



	LEGISLATIVE COUNSEL'S DIGEST


   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:

  SECTION 1.  It is the intent of this act to provide an incentive
for a taxpayer that operates a service station to purchase and
install an emergency standby generator at a service station located
in this state in order for the service station to be able to continue
to maintain electrical power to provide services to the public
during power outages.
  SEC. 2.  Section 17053.88 is added to the Revenue and Taxation
Code, to read:
   17053.88.  (a) For each taxable year beginning on or after January
1, 2012, and before January 1, 2017, there shall be allowed as a
credit against the "net tax," as defined in Section 17039, an amount
equal to 50 percent of the amount paid or incurred during the taxable
year for the purchase and installation of an emergency standby
generator at a service station located in this state, not to exceed
two thousand five hundred dollars ($2,500) per emergency standby
generator.
   (b) For purposes of this section:
   (1) "Emergency standby generator" means an electrical generator
that is rated by the manufacturer to generate at least 30 kilowatts
of electricity and whose sole function is to automatically provide
electric power when electric power from a utility service is
interrupted.
   (2) "Gross receipts" shall have the same meaning as set forth in
Section 25120.
   (3) "Service station" means an establishment that offers for sale
or sells to the public, gasoline or other fuel to power motor
vehicles and is owned by a taxpayer with worldwide gross receipts of
less than one million dollars ($1,000,000) for any taxable year for
which the credit authorized by this section is claimed. The gross
receipts of any trades or businesses that are treated as related
under Section 267, 318, or 707 of the Internal Revenue Code shall be
aggregated for purposes of determining worldwide gross receipts under
this paragraph.
   (c) The depreciable basis of any emergency standby generator shall
be reduced by the amount of any credit allowable under this section.

   (d) If an emergency standby generator for which a credit is
allowed pursuant to this section is thereafter sold, returned to the
vendor, or otherwise removed from service by the taxpayer within one
year from the date the emergency standby generator was placed in
service, the amount of credit allowed by this section for the
purchase and installation of that emergency standby generator shall
be recaptured by adding that credit amount to the net tax of the
taxpayer for the taxable year in which the emergency standby
generator is sold or removed.
   (e) 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 seven succeeding years if necessary,
until the credit is exhausted.
   (f) This section shall remain in effect only until December 1,
2017, and as of that date is repealed.
  SEC. 3.  Section 23689 is added to the Revenue and Taxation Code,
to read:
   23689.  (a) For each taxable year beginning on or after January 1,
2012, and before January 1, 2017, there shall be allowed as a credit
against the "tax," as defined in Section 23036, an amount equal to
50 percent of the amount paid or incurred during the taxable year for
the purchase and installation of an emergency standby generator at a
service station located in this state, not to exceed two thousand
five hundred dollars ($2,500) per emergency standby generator.
   (b) For purposes of this section:
   (1) "Emergency standby generator" means an electrical generator
that is rated by the manufacturer to generate at least 30 kilowatts
of electricity and whose sole function is to automatically provide
electric power when electric power from a utility service is
interrupted.
   (2) "Gross receipts" shall have the same meaning as set forth in
Section 25120.
   (3) "Service station" means an establishment that offers for sale
or sells to the public, gasoline or other fuel to power motor
vehicles and is owned by a taxpayer with worldwide gross receipts of
less than one million dollars ($1,000,000) for any taxable year for
which the credit authorized by this section is claimed. The gross
receipts of any trades or businesses that are treated as related
under Section 267, 318, or 707 of the Internal Revenue Code shall be
aggregated for purposes of determining worldwide gross receipts under
this paragraph.
   (c) The depreciable basis of any emergency standby generator shall
be reduced by the amount of any credit allowable under this section.

   (d) If an emergency standby generator for which a credit is
allowed pursuant to this section is thereafter sold, returned to the
vendor, or otherwise removed from service by the taxpayer within one
year from the date the emergency standby generator was placed in
service, the amount of credit allowed by this section for the
purchase and installation of that emergency standby generator shall
be recaptured by adding that credit amount to the tax of the taxpayer
for the taxable year in which the emergency standby generator is
sold or removed.
   (e) 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 seven succeeding years if necessary, until
the credit is exhausted.
   (f) This section shall remain in effect only until December 1,
2017, and as of that date is repealed.
  SEC. 4.   This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.