BILL NUMBER: AB 1651	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 2, 2014

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 amended, 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
 located in California  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.   (a)    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  , as determined by
the taxpayer,  of any tangible personal property  located in
California  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. 
   (b) For purposes of this section:  
   (1) "Fair market value" means "full cash value" or "fair market
value" as defined in Section 110.  
   (2) "Tangible personal property" means privately owned property
that has physical substance and can be touched.  
   (c) This section shall apply only to a rule or regulation
promulgated by a California state agency or a statute enacted by the
California Legislature promulgated or enacted on or after the
effective date of the act adding this section.  
   (d) The deduction allowed by this section is in lieu of any other
deduction which the taxpayer may otherwise claim pursuant to this
part with respect to the depreciation of tangible personal property.

  SEC. 2.  Section 24356.9 is added to the Revenue and Taxation Code,
to read:
   24356.9.   (a)    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  , as determined by
the taxpayer,  of any tangible personal property  located in
California  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. 
   (b) For purposes of this section:  
   (1) "Fair market value" means "full cash value" or "fair market
value" as defined in Section 110.  
   (2) "Tangible personal property" means privately owned property
that has physical substance and can be touched.  
   (c) This section shall apply only to a rule or regulation
promulgated by a California state agency or a statute enacted by the
California Legislature promulgated or enacted on or after the
effective date of the act adding this section.  
   (d) The deduction allowed by this section is in lieu of any other
deduction which the taxpayer may otherwise claim pursuant to this
part with respect to the depreciation of tangible personal property.

  SEC. 3.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.