BILL NUMBER: AB 1999 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 1, 2014
INTRODUCED BY Assembly Member Atkins
FEBRUARY 20, 2014
An act relating to taxation. An act to add
and repeal Sections 17053.86 and 23686 of the Revenue and Taxation
Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 1999, as amended, Atkins. Income taxes: California
Economic Development and Historic Preservation Tax Credit Act.
Personal income and corporation tax credits:
rehabilitation.
The Personal Income Tax Law and the Corporation Tax Law allow
various credits against the taxes imposed by those laws.
This bill would allow a credit against those taxes for each
taxable year beginning on or after January 1, 2015, and before
January 1, 2026, in an amount, determined pursuant to a specified
section of the Internal Revenue Code, that is paid or incurred during
the taxable year for rehabilitation of certified historic
structures. This bill would provide for a 25% credit, or 30% credit
if the structure meets specified criteria, for rehabilitation of a
certified historic structure within the state.
This bill would take effect immediately as a tax levy.
This bill would state that it is the intent of the Legislature to
enact the California Economic Development and Historic Preservation
Tax Credit Act, the purpose of which is to create jobs and revitalize
communities by providing an incentive for the renovation and
restoration of historic properties.
Vote: majority. Appropriation: no. Fiscal committee: no
yes . State-mandated local program: no.
THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:
SECTION 1. Section 17053.86 is added to the
Revenue and Taxation Code , to read:
17053.86. For each taxable year beginning on or after January 1,
2015, and before January 1, 2026, there shall be allowed as a credit
against the "net tax," as defined in Section 17039, an amount
determined in accordance with Section 47 of the Internal Revenue
Code, except as follows:
(a) (1) In lieu of the percentages specified in Section 47(a) of
the Internal Revenue Code, except as provided in paragraph (2), the
applicable percentage shall be 25 percent of the qualified
rehabilitation expenditures with respect to a certified historic
structure.
(2) The applicable percentage shall be 30 percent of the qualified
rehabilitation expenditures with respect to a certified historic
structure if that certified historic structure meets one of the
following criteria:
(A) The structure is located on federal, state, or local surplus
property.
(B) The rehabilitated structure will contain a majority of
low-income housing units.
(C) The structure is located in an economically distressed area.
(D) The structure is located in a Base Realignment and Closure
Zone.
(E) The structure is located in a Transit-Oriented Development
Area.
(b) For purposes of this section, a certified historic structure
means a structure in this state that appears on either the National
Register of Historic Places or the California Register of Historical
Resources.
(c) A deduction shall not be allowed under this part for any
expense for which a credit is allowed by this section.
(d) If a credit is allowed under this section with respect to any
property, the basis of that property shall be reduced by the amount
of the credit allowed.
(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,
2026, and as of that date is repealed.
SEC. 2. Section 23686 is added to the
Revenue and Taxation Code , to read:
23686. For each taxable year beginning on or after January 1,
2015, and before January 1, 2026, there shall be allowed as a credit
against the "tax," as defined in Section 23036, an amount determined
in accordance with Section 47 of the Internal Revenue Code, except as
follows:
(a) (1) In lieu of the percentages specified in Section 47(a) of
the Internal Revenue Code, except as provided in paragraph (2), the
applicable percentage shall be 25 percent of the qualified
rehabilitation expenditures with respect to a certified historic
structure.
(2) The applicable percentage shall be 30 percent of the qualified
rehabilitation expenditures with respect to a certified historic
structure if that historic structure meets one of the following
criteria:
(A) The structure is located on federal, state, or local surplus
property.
(B) The rehabilitated structure will contain a majority of
low-income housing units.
(C) The structure is located in an economically distressed area.
(D) The structure is located in a Base Realignment and Closure
Zone.
(E) The structure is located in a Transit-Oriented Development
Area.
(b) For purposes of this section, a certified historic structure
means a structure in this state that appears on either the National
Register of Historic Places or the California Register of Historical
Resources.
(c) A deduction shall not be allowed under this part for any cost
for which a credit is allowed by this section.
(d) If a credit is allowed under this section with respect to any
property, the basis of that property shall be reduced by the amount
of the credit allowed.
(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,
2026, and as of that date is repealed.
SEC. 3. This act provides for a tax levy within
the meaning of Article IV of the Constitution and shall go into
immediate effect.
SECTION 1. It is the intent of the Legislature
to enact the California Economic Development and Historic
Preservation Tax Credit Act, the purpose of which is to create jobs
and revitalize communities by providing an incentive for the
renovation and restoration of historic properties.