BILL NUMBER: AB 1651	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Donnelly
   (Principal coauthor: Assembly Member Grove)

                        FEBRUARY 11, 2014

   An act to add Sections 17239 and 24356.9 to the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1651, as introduced, Donnelly. Income taxes: deductions: loss
of fair market value.
   The Personal Income Tax Law and the Corporation Tax Law authorize
various deductions in computing income that is subject to tax under
those laws.
   This bill would allow as a deduction, under both of those laws for
taxable years beginning on or after January 1, 2015, the amount of
any loss of the fair market value of any tangible personal property
that is attributable to a rule, regulation, or statute that took
effect in the taxable year in which the deduction is claimed, as
provided.
   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 17239 is added to the Revenue and Taxation
Code, to read:
   17239.  For taxable years beginning on or after January 1, 2014,
there shall be allowed as a deduction the amount of any loss of the
fair market value of any tangible personal property attributable to a
rule or regulation promulgated by a California state agency or a
statute enacted by the California Legislature that took effect in the
taxable year in which the deduction is claimed.
  SEC. 2.  Section 24356.9 is added to the Revenue and Taxation Code,
to read:
   24356.9.  For taxable years beginning on or after January 1, 2014,
there shall be allowed as a deduction the amount of any loss of the
fair market value of any tangible personal property attributable to a
rule or regulation promulgated by a California state agency or a
statute enacted by the California Legislature that took effect in the
taxable year in which the deduction is claimed.
  SEC. 3.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.