BILL NUMBER: AB 1510	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 1, 2014
	AMENDED IN ASSEMBLY  APRIL 1, 2014

INTRODUCED BY   Assembly Member Nazarian

                        JANUARY 14, 2014

   An act to add Sections 17052.9 and 23605 to the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1510, as amended, Nazarian. Income taxes credit: seismic
retrofits.
   The Personal Income Tax Law and the Corporation Tax Law allow
various credits against the taxes imposed by those laws.
   This bill would allow, for taxable years beginning on or after
January 1, 2015, a tax credit under both laws in an amount equal to
30% of the qualified costs paid or incurred by a qualified taxpayer
for  the   any  seismic retrofit 
of   construction on  a qualified building, as
defined. This bill would require a taxpayer to obtain a certification
from the  local housing authority   appropriate
jurisdiction with authority for building code enforcement  of
the area in which the building is located that the building is an
at-risk property, as defined, and to provide that certification to
the Franchise Tax Board upon the request of the Franchise Tax Board.
   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.  Section 17052.9 is added to the Revenue and Taxation
Code, to read:
   17052.9.  (a) For taxable years beginning on or after January 1,
2015, there shall be allowed to a qualified taxpayer a credit against
the "net tax," as defined in Section 17039, in an amount equal to 30
percent of the qualified taxpayer's qualified costs.
   (b) For purposes of this section:
   (1) "At-risk property" means a building that is deemed hazardous
and in danger of collapse in the event of a  major 
 catastrophic  earthquake, including, but not limited to,
soft story buildings, nonductile concrete residential buildings, and
pre-1980 concrete residential buildings. 
   (2) "Local housing authority" means a housing authority created
pursuant to Chapter 1 (commencing with Section 34200) of Part 2 of
Division 24 of the Health and Safety Code.  
   (3) 
    (2)  "Qualified building" means a building that has been
certified as an at-risk property by the local housing authority for
the area within which the building is located. 
   (4) 
    (3)  "Qualified costs" means the costs paid or incurred
by the taxpayer for  the   any  seismic
retrofit  of  construction on  a qualified
building. "Qualified costs" shall not include ordinary repair or
replacement of existing fixtures or items on or in the qualified
building. 
   (5) 
    (4)  "Qualified taxpayer" means a taxpayer that is an
owner of a qualified building located in this state. A taxpayer that
owns a proportional share of a qualified building in this state may
claim the credit allowed by this section based on the taxpayer's
share of the qualified costs. 
   (5) (A) "Seismic retrofit construction" means changes or additions
to the structure of a qualified building to mitigate seismic damage,
including:  
   (i) Anchoring the structure to the foundation.  
   (ii) Bracing cripple walls.  
   (iii) Bracing hot water heaters.  
   (iv) Installing automatic gas shutoff valves.  
   (v) Repairing or reinforcing the foundation to improve the
integrity of the foundation against seismic damage.  
   (vi) Anchoring fuel storage.  
   (vii) Installing an earthquake-resistant bracing system for
mobilehomes that is certified by the California Department of Housing
and Community Development.  
   (B) "Seismic retrofit construction" does not include construction
activities performed solely to bring a qualified building into
compliance with standard local building codes. 
   (c) To be eligible for the credit under this section, the
following must apply:
   (1) The qualified taxpayer shall  obtain   do
both of the following: 
    (A)     Obtain  certification from the
appropriate  local housing authority,  
jurisdiction with authority for building code enforcement,  upon
a review of the building, that the building is an at-risk property.
Upon the request of the Franchise Tax Board, the qualified taxpayer
shall provide a copy of the certification to the Franchise Tax Board.

   (B) Retain for his or her records a copy of the certification
specified in subparagraph (A). 
   (2) The  local housing authority  
jurisdiction with authority for building code enforcement in
which a qualified building is located has entered into an agreement
with the state to provide certifications pursuant to this section and
to not seek reimbursement pursuant to Section 6 of Article XIII B of
the California Constitution for any costs incurred in providing
those certifications.
   (d) (1) The credit amount allowed in subdivision (a) shall be
claimed by a qualified taxpayer at the rate of one-fifth of the
credit amount for the taxable year in which the credit is allocated,
and one-fifth of the credit amount for each of the subsequent four
taxable years.
   (2) In the case where the credit allowed under this section
exceeds the "net tax," as defined in Section 17039, for a taxable
year, the excess credit may be carried over to reduce the "net tax"
in the following taxable year, and succeeding four taxable years, if
necessary, until the credit has been exhausted. 
   (e) For purposes of computing the credit provided by this section,
the qualified costs shall be reduced by any grant provided by a
public entity for the seismic retrofit construction. 
  SEC. 2.  Section 23605 is added to the Revenue and Taxation Code,
to read:
   23605.  (a) For taxable years beginning on or after January 1,
2015, there shall be allowed to a qualified taxpayer a credit against
the "tax," as defined in Section 23036, in an amount equal to 30
percent of the qualified taxpayer's qualified costs.
   (b) For purposes of this section:
   (1) "At-risk property" means a building that is deemed hazardous
and in danger of collapse in the event of a  major 
 catastrophic  earthquake, including, but not limited to,
soft story buildings, nonductile concrete residential buildings, and
pre-1980 concrete residential buildings. 
   (2) "Local housing authority" means a housing authority created
pursuant to Chapter 1 (commencing with Section 34200) of Part 2 of
Division 24 of the Health and Safety Code.  
   (3) 
    (2)  "Qualified building" means a building that has been
certified as an at-risk property by the local housing authority for
the area within which the building is located. 
   (4) 
    (3)  "Qualified costs" means the costs paid or incurred
by the taxpayer for  the   any  seismic
retrofit  of   construction on a qualified
building. "Qualified costs" shall not include ordinary repair or
replacement of existing fixtures or items on or in the qualified
building. 
   (5) 
    (4)  "Qualified taxpayer" means a taxpayer that is an
owner of a qualified building located in this state. A taxpayer that
owns a proportional share of a qualified building in this state may
claim the credit allowed by this section based on the taxpayer's
share of the qualified costs. 
   (5) (A) "Seismic retrofit construction" means changes or additions
to the structure of a qualified building to mitigate seismic damage,
including:  
   (i) Anchoring the structure to the foundation.  
   (ii) Bracing cripple walls.  
   (iii) Bracing hot water heaters.  
   (iv) Installing automatic gas shutoff valves.  
   (v) Repairing or reinforcing the foundation to improve the
integrity of the foundation against seismic damage.  
   (vi) Anchoring fuel storage.  
   (vii) Installing an earthquake-resistant bracing system for
mobilehomes that is certified by the California Department of Housing
and Community Development.  
   (B) "Seismic retrofit construction" does not include construction
activities performed solely to bring a qualified building into
compliance with standard local building codes. 
   (c) To be eligible for the credit under this section, the
following must apply:
   (1) The qualified taxpayer shall  obtain  do
both of the following: 
    (A)     Obtain  certification from the
appropriate  local housing authority,  
jurisdiction with authority for building code enforcement,  upon
a review of the building, that the building is an at-risk property.
Upon the request of the Franchise Tax Board, the qualified taxpayer
shall provide a copy of the certification to the Franchise Tax Board.

   (B) Retain for his or her records a copy of the certification
specified in subparagraph (A). 
   (2) The  local housing authority  
jurisdiction with authority for building code enforcement  in
which a qualified building is located has entered into an agreement
with the state to provide certifications pursuant to this section and
to not seek reimbursement pursuant to Section 6 of Article XIII B of
the California Constitution for any costs incurred in providing
those certifications.
   (d) (1) The credit amount allowed in subdivision (a) shall be
claimed by a qualified taxpayer at the rate of one-fifth of the
credit amount for the taxable year in which the credit is allocated,
and one-fifth of the credit amount for each of the subsequent four
taxable years.
   (2) In the case where the credit allowed under this section
exceeds the "tax," as defined in Section 23036, for a taxable year,
the excess credit may be carried over to reduce the "tax" in the
following taxable year, and succeeding four taxable years, if
necessary, until the credit has been exhausted. 
   (e) For purposes of computing the credit provided by this section,
the qualified costs shall be reduced by any grant provided by a
public entity for the seismic retrofit construction. 
  SEC. 3.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.