BILL NUMBER: AB 2434	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 19, 2014

INTRODUCED BY   Assembly Member Gomez

                        FEBRUARY 21, 2014

   An act to add  and repeal  Sections 17138.2 and 24308.2
 to   of  the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2434, as amended, Gomez. Income taxes: exclusion.
   The Personal Income Tax Law provides an exclusion from gross
income for any amount received as a rebate  or voucher  from
a local water  or energy  agency or supplier for the
purchase  or installation  of a water conservation water
closet, energy efficient clothes washers, and plumbing devices, as
specified. The  Personal Income Tax Law and the  Corporation
Tax Law  provides   provide an  exclusion
from gross income for any rebate, voucher, or other financial
incentive issued by the California Energy Commission,  The
public   the Public  Utility Commission, or a local
publicly owned electric utility for any  expense 
 expenses paid or  incurred by a taxpayer for the purchase
or installation of a thermal system, solar system, wind energy 
system  device that produces electricity, or a fuel cell
generating system.
   This bill would,  for taxable years beginning on or after
January 1, 2014, and before January 1, 2019,  under both of
these laws, provide an exclusion from gross income  for  any
amount received as a rebate, voucher, or other financial incentive
issued by a local water  or energy  agency or
supplier for  expenses incurred to participate  
participation  in a  turf removal  water  or
energy  conservation program.
   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 17138.2 is added to the Revenue and Taxation
Code, to read:
   17138.2.   Gross   (a)    
For taxable years beginning on or after January 1, 2014, and before
January 1, 2019, gross  income does not include any amount
received as a rebate, voucher, or other financial incentive issued by
a local water  or energy  agency or supplier for
 expenses incurred to participate  
participation  in a  turf removal  water  or
energy  conservation program. 
   (b) This section shall remain in effect only until December 1,
2019, and as of that date is repealed. 
  SEC. 2.  Section 24308.2 is added to the Revenue and Taxation Code,
to read:
   24308.2.   Gross   (a)    
For taxable years beginning on or after January 1, 2014, and before
January 1, 2019, gross  income does not include any amount
received as a rebate, voucher, or other financial incentive issued by
a local water  or energy  agency or supplier for
 expenses incurred to participate  participation
 in a  turf removal  water  or energy
 conservation program. 
   (b) This section shall remain in effect only until December 1,
2019, 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.