AB 428,
as amended, Nazarian. Incomebegin delete taxesend deletebegin insert taxes:end insert 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,begin delete 2016, and before January 1, 2021, a tax credit under both laws in an amount equal to 30% of the qualified costs paid or incurred by a qualified taxpayer for any seismic retrofit construction on a qualified building, as defined. This bill, prior to seismic retrofit construction, would require a taxpayer to obtain certification from the appropriate jurisdiction with local building code enforcement authority that the building has been certified as an at-risk property, as defined. This bill would also
require a taxpayer to obtain a certification from the appropriate jurisdiction with authority for building code enforcement of the area in which the building is located that seismic retrofit construction, as defined, has been completed, and to provide those certifications to the Franchise Tax Board upon the request of the Franchise Tax Board.end deletebegin insert end insertbegin insert2017, and before January 1, 2022, a tax credit under both laws in an amount equal to 30% of the qualified costs paid or incurred by a qualified taxpayer for any seismic retrofit construction on a qualified building, as provided. The bill would require a taxpayer to obtain 2 certifications from the appropriate jurisdiction with authority for building code enforcement of the area in which the building is located: one that certifies that the building is an at-risk property and
one that certifies that the seismic retrofit construction, as defined, has been completed. The bill would require the taxpayer to apply to the Franchise Tax Board for allocation of the credit and to provide a specified certification and for the Franchise Tax Board to allocate credits on a first-come-first-served basis. The bill would provide that the credit would have an aggregate cap under both laws of $12,000,000 for each calendar year, as provided. end insert
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:
begin insertSection 17053.50 is added to the end insertbegin insertRevenue and
2Taxation Codeend insertbegin insert, to read:end insert
(a) For taxable years beginning on or after January
41, 2017, and before January 1, 2022, there shall be allowed to a
5qualified taxpayer a credit against the “net tax,” as defined in
6Section 17039, in an amount equal to 30 percent of the qualified
7taxpayer’s qualified costs.
8(b) For purposes of this section:
9(1) “At-risk property” means a building that is deemed
10hazardous and in danger of collapse in the event of a catastrophic
11earthquake, including, but not limited to, soft story buildings,
12nonductile concrete residential buildings, and pre-1994 concrete
13residential buildings.
14(2) “Qualified building” means a
building that has been
15certified as an at-risk property pursuant to subparagraph (A) of
16paragraph (1) of subdivision (c). A qualified building includes a
17mobilehome registered by the Department of Housing and
18Community Development.
P3 1(3) “Qualified costs” means the costs paid or incurred by the
2qualified taxpayer for any completed seismic retrofit construction
3on a qualified building, including any engineering or architectural
4design work necessary to permit or complete the seismic retrofit
5construction less the amount of any grant provided by a public
6entity for the seismic retrofit construction. “Qualified costs” do
7not include any of the following costs paid or incurred by the
8qualified taxpayer:
9(A) Maintenance, including abatement of deferred or inadequate
10maintenance, and correction of violations unrelated to the seismic
11retrofit construction.
12(B) Repair, including repair of earthquake damage.
13(C) Seismic retrofit construction required by local building
14codes as a result of addition, repair, building relocation, change
15of use, or occupancy.
16(D) Other work or improvement required by local building or
17planning codes as a result of the intended seismic retrofit
18construction.
19(E) Rent reductions or other associated compensation,
20compliance actions, or other related coordination involving the
21qualified taxpayer and any other party, including a tenant, insurer,
22or lender.
23(F) Replacement of existing building components, including
24equipment, except as needed to complete the seismic retrofit
25construction.
26(G) Bracing or securing nonpermanent building contents.
27(H) The offset of costs, reimbursements, or other costs
28transferred from the qualified taxpayers to others.
29(I) Any amount paid by the qualified taxpayer to the jurisdiction
30with authority for building code enforcement for issuing the
31certifications required pursuant to subparagraphs (A) and (B) of
32paragraph (1) of subdivision (c).
33(4) “Qualified taxpayer” means a taxpayer that is an owner of
34a qualified building located in this state. A taxpayer that owns a
35proportional share of a qualified building in this state may claim
36the credit allowed by this section based on the taxpayer’s share
37of the qualified costs.
38(5) (A) “Seismic retrofit construction” means alteration of a
39qualified building or its components to substantially mitigate
40seismic damage. Seismic retrofit construction shall be for work
P4 1performed, and for which qualified costs were paid or incurred,
2on or after January 1, 2017. Seismic retrofit construction shall
3include, but not be limited to, the following:
4(i) Anchoring the structure to the foundation.
5(ii) Bracing cripple walls.
6(iii) Bracing hot water heaters.
7(iv) Installing automatic gas shutoff valves.
8(v) Repairing or reinforcing the foundation to improve the
9integrity of the foundation against seismic damage.
10(vi) Anchoring fuel storage.
11(vii) Installing an earthquake resistant bracing system for
12mobilehomes that are registered with the Department of Housing
13and Community Development.
14(B) Notwithstanding subparagraph (A), seismic retrofit
15construction does not include construction performed to bring a
16building into compliance with local building codes.
17(c) To be eligible for the credit, the following shall apply:
18(1) The qualified taxpayer shall do all of the following:
19(A) Prior to the seismic retrofit construction, obtain certification
20from the appropriate jurisdiction with local building code
21enforcement authority that the building is an at-risk property.
22(B) Obtain certification from the appropriate jurisdiction with
23authority for building code enforcement, upon a review of the
24building, that the completed construction satisfies the definition
25of seismic retrofit construction. The certification shall identify
26what part of the completed construction, if any, is not seismic
27retrofit construction, and specify a dollar amount of qualified
28costs.
29(C) Request and be granted an allocation of the credit from the
30Franchise Tax Board. To request an allocation, the taxpayer shall
31sign and submit to the Franchise Tax Board an application to
32receive a credit for the seismic retrofit construction and provide
33a copy of the certification obtained pursuant to subparagraph (B).
34(D) Retain for his or her records a copy of the certifications
35specified in subparagraphs (A) and (B).
36(2) The jurisdiction with authority for building code enforcement
37in which a qualified building is located has entered into an
38agreement with the state to provide certifications pursuant to this
39section and to not seek reimbursement pursuant to Section 6 of
P5 1Article XIII B of the California Constitution for any costs incurred
2in providing those certifications.
3(d) (1) The credit amount allowed in subdivision (a) shall be
4claimed by a qualified taxpayer at the rate of one-fifth of the credit
5amount for the taxable year in which the credit is allowed, and
6one-fifth of the credit amount for each of the subsequent four
7taxable years.
8(2) In the case where the credit allowed under this section
9exceeds the “net tax,” as defined in Section 17039, for a taxable
10year, the excess
credit may be carried over to reduce the “net tax”
11in the following taxable year, and succeeding four taxable years,
12if necessary, until the credit has been exhausted.
13(e) (1) The total amount of credit that may be allocated pursuant
14to this section and Section 23650 shall not exceed the sum of the
15following:
16(A) Twelve million dollars ($12,000,000) for the 2017 calendar
17year and each calendar year thereafter.
18(B) The amount of previously unallocated credits allowed under
19this section.
20(2) Upon receipt of the application and certification described
21in subparagraph (C) of paragraph (1) of subdivision (c), the
22Franchise Tax Board shall notify the taxpayer of the amount, if
23any, of credit allowed and allocate the credit to a qualified
24
taxpayer on a first-come-first-served basis.
25(3) (A) The taxpayer shall claim the credit on a timely filed
26original return.
27(B) The determination of the Franchise Tax Board with respect
28to the allocation of the credit, and whether a return has been timely
29filed for purposes of this subdivision may not be reviewed in any
30administrative or judicial proceeding.
31(C) Any disallowance of a credit claimed due to a determination
32under this subdivision, including the application of the limitation
33specified in paragraph (1), shall be treated as a mathematical
34error appearing on the return. Any amount of tax resulting from
35that disallowance may be assessed by the Franchise Tax Board in
36the same manner as provided by Section 19051.
37(f) This
credit shall be in lieu of any other credit or deduction
38that the qualified taxpayer may otherwise claim pursuant to this
39part with respect to qualified costs.
P6 1(g) The Franchise Tax Board may prescribe rules, guidelines,
2or procedures necessary or appropriate to carry out the purposes
3of this section, including any guidelines regarding the allocation
4of the credit allowed under this section. Chapter 3.5 (commencing
5with Section 11340) of Part 1 of Division 3 of Title 2 of the
6Government Code does not apply to any rule, guideline, or
7procedure prescribed by the Franchise Tax Board pursuant to this
8section.
9(h) Section 41 shall not apply to the credit allowed pursuant to
10this section.
11(i) This section shall remain in effect only until December 1,
122022, and as of that date is repealed.
begin insertSection 23650 is added to the end insertbegin insertRevenue and Taxation
14Codeend insertbegin insert, to read:end insert
(a) For taxable years beginning on or after January
161, 2017, and before January 1, 2022, there shall be allowed to a
17qualified taxpayer a credit against the “tax,” as defined in Section
1823036, in an amount equal to 30 percent of the qualified taxpayer’s
19qualified costs.
20(b) For purposes of this section:
21(1) “At-risk property” means a building that is deemed
22hazardous and in danger of collapse in the event of a catastrophic
23earthquake, including, but not limited to, soft story buildings,
24nonductile concrete residential buildings, and pre-1994 concrete
25residential buildings.
26(2) “Qualified building” means a building
that has been
27certified as an at-risk property pursuant to subparagraph (A) of
28paragraph (1) of subdivision (c). A qualified building includes a
29mobilehome registered by the Department of Housing and
30Community Development.
31(3) “Qualified costs” means the costs paid or incurred by the
32qualified taxpayer for any completed seismic retrofit construction
33on a qualified building, including any engineering or architectural
34design work necessary to permit or complete the seismic retrofit
35construction less the amount of any grant provided by a public
36entity for the seismic retrofit construction. “Qualified costs” do
37not include any of the following costs paid or incurred by the
38qualified taxpayer:
P7 1(A) Maintenance, including abatement of deferred or inadequate
2maintenance, and correction of violations unrelated to the seismic
3retrofit construction.
4(B) Repair, including repair of earthquake damage.
5(C) Seismic retrofit construction required by local building
6codes as a result of addition, repair, building relocation, change
7of use, or occupancy.
8(D) Other work or improvement required by local building or
9planning codes as a result of the intended seismic retrofit
10construction.
11(E) Rent reductions or other associated compensation,
12compliance actions, or other related coordination involving the
13qualified taxpayer and any other party, including a tenant, insurer,
14or lender.
15(F) Replacement of existing building components, including
16equipment, except as needed to complete the seismic retrofit
17construction.
18(G) Bracing or securing nonpermanent building contents.
19(H) The offset of costs, reimbursements, or other costs
20transferred from the qualified taxpayers to others.
21(I) Any amount paid by the qualified taxpayer to the jurisdiction
22with authority for building code enforcement for issuing the
23certifications required pursuant to subparagraphs (A) and (B) of
24paragraph (1) of subdivision (c).
25(4) “Qualified taxpayer” means a taxpayer that is an owner of
26a qualified building located in this state. A taxpayer that owns a
27proportional share of a qualified building in this state may claim
28the credit allowed by this section based on the taxpayer’s share
29of the qualified costs.
30(5) (A) “Seismic retrofit construction” means alteration of a
31qualified building or its components to substantially mitigate
32seismic damage. Seismic retrofit construction shall be for work
33performed, and for which qualified costs were paid or incurred,
34on or after January 1, 2017. Seismic retrofit construction shall
35include, but not be limited to, the following:
36(i) Anchoring the structure to the foundation.
37(ii) Bracing cripple walls.
38(iii) Bracing hot water heaters.
39(iv) Installing automatic gas shutoff valves.
P8 1(v) Repairing or reinforcing the foundation to improve the
2integrity of the foundation against seismic damage.
3(vi) Anchoring fuel storage.
4(vii) Installing an earthquake resistant bracing system for
5mobilehomes that are registered with the Department of Housing
6and Community Development.
7(B) Notwithstanding subparagraph (A), seismic retrofit
8construction does not include construction performed to bring a
9building into compliance with local building codes.
10(c) To be eligible for the credit, the following shall apply:
11(1) The qualified taxpayer shall do all of the following:
12(A) Prior to the seismic retrofit construction, obtain certification
13from the appropriate jurisdiction with local building code
14enforcement authority that the building is an at-risk property.
15(B) Obtain certification from the appropriate jurisdiction with
16authority for building code enforcement, upon a review of the
17building, that the completed construction satisfies the definition
18of seismic retrofit construction. The certification shall identify
19what part of the completed construction, if any, is not seismic
20retrofit construction and specify a dollar amount of qualified costs.
21(C) Request and be granted an allocation of the credit from the
22Franchise Tax Board. To request an allocation, the taxpayer shall
23sign and submit to the Franchise Tax Board an application to
24receive a credit for the seismic retrofit construction and provide
25a copy of the certification obtained pursuant to subparagraph (B).
26(D) Retain for his or her records a copy of the certifications
27specified in subparagraph (A) and (B).
28(2) The jurisdiction with authority for building code enforcement
29in which a qualified building is located has entered into an
30agreement with the state to provide certifications pursuant to this
31section and to not seek reimbursement pursuant to Section 6 of
32Article XIII B of the California Constitution for any costs incurred
33in providing those certifications.
34(d) (1) The credit amount allowed in subdivision (a) shall be
35claimed by a qualified taxpayer at the rate of one-fifth of the credit
36amount for the taxable year in which the credit is allowed, and
37one-fifth of the credit amount for each of the subsequent four
38taxable years.
39(2) In the case where the credit allowed under this section
40exceeds the “tax,” as defined in Section 23036, for a taxable year,
P9 1the excess credit
may be carried over to reduce the “tax” in the
2following taxable year, and succeeding four taxable years, if
3necessary, until the credit has been exhausted.
4(e) (1) The total amount of credit that may be allocated pursuant
5to this section and Section 17053.50 shall not exceed the sum of
6the following:
7(A) Twelve million dollars ($12,000,000) for the 2017 calendar
8year and each calendar year thereafter.
9(B) The amount of previously unallocated credits allowed under
10this section.
11(2) Upon receipt of the application and certifications described
12in subparagraph (C) of paragraph (1) of subdivision (c), the
13Franchise Tax Board shall notify the taxpayer of the amount, if
14any, of credit allowed and allocate the credit to a qualified
15
taxpayer on a first-come-first-served basis.
16(3) (A) The taxpayer shall claim the credit on a timely filed
17original return.
18(B) The determination of the Franchise Tax Board with respect
19to the allocation of the credit, and whether a return has been timely
20filed for purposes of this subdivision may not be reviewed in any
21administrative or judicial proceeding.
22(C) Any disallowance of a credit claimed due to a determination
23under this subdivision, including the application of the limitation
24specified in paragraph (1), shall be treated as a mathematical
25error appearing on the return. Any amount of tax resulting from
26that disallowance may be assessed by the Franchise Tax Board in
27the same manner as provided by Section 19051.
28(f) This
credit shall be in lieu of any other credit or deduction
29that the qualified taxpayer may otherwise claim pursuant to this
30part with respect to qualified costs.
31(g) The Franchise Tax Board may prescribe rules, guidelines,
32or procedures necessary or appropriate to carry out the purposes
33of this section, including any guidelines regarding the allocation
34of the credit allowed under this section. Chapter 3.5 (commencing
35with Section 11340) of Part 1 of Division 3 of Title 2 of the
36Government Code does not apply to any rule, guideline, or
37procedure prescribed by the Franchise Tax Board pursuant to this
38section.
39(h) Section 41 shall not apply to the credit allowed pursuant to
40this section.
P10 1(i) This section shall remain in effect only until December 1,
22022, and as of that date is repealed.
This act provides for a tax levy within the meaning of
4Article IV of the Constitution and shall go into immediate effect.
Section 17053.50 is added to the Revenue and
6Taxation Code, to read:
(a) For taxable years beginning on or after January
81, 2016, and before January 1, 2021, there shall be allowed to a
9qualified taxpayer a credit against the “net tax,” as defined in
10Section 17039, in an amount equal to 30 percent of the qualified
11taxpayer’s qualified costs.
12(b) For purposes of this section:
13(1) “At-risk property” means a building that is deemed
14hazardous and in danger of collapse in the event of a catastrophic
15earthquake, including, but not limited to, soft story buildings,
16nonductile concrete residential buildings, and pre-1994 concrete
17residential buildings.
18(2) “Qualified building” means a building that has been certified
19as an at-risk property pursuant to subparagraph (A) of paragraph
20(1) of subdivision (c). A qualified building includes a mobilehome
21registered by the Department of Housing and Community
22Development.
23(3) “Qualified costs” means the costs paid or incurred by the
24qualified taxpayer for any completed seismic retrofit construction
25on a qualified building, including any engineering or architectural
26design work necessary to permit or complete the seismic retrofit
27
construction. “Qualified costs” do not include any of the following
28costs paid or incurred by the qualified taxpayer:
29(A) Maintenance, including abatement of deferred or inadequate
30maintenance, and correction of violations unrelated to the seismic
31retrofit construction.
32(B) Repair, including repair of earthquake damage.
33(C) Seismic retrofit construction required by local building
34codes as a result of addition, repair, building relocation, change
35of use, or occupancy.
36(D) Other work or improvement required by local building or
37planning codes as a result of the intended seismic retrofit
38construction.
39(E) Rent reductions or other associated compensation,
40compliance actions, or other related coordination involving the
P11 1qualified taxpayer and any other party, including a tenant, insurer,
2or lender.
3(F) Replacement of existing building components, including
4equipment, except as needed to complete the seismic retrofit
5construction.
6(G) Bracing or securing nonpermanent building contents.
7(H) The offset of costs, reimbursements, or other costs
8transferred from the qualified taxpayers to others.
9(I) Any amount paid by the qualified taxpayer to the jurisdiction
10with authority for building code enforcement for issuing the
11
certifications required pursuant to subdivision (c).
12(4) “Qualified taxpayer” means a taxpayer that is an owner of
13a qualified building located in this state. A taxpayer that owns a
14proportional share of a qualified building in this state may claim
15the credit allowed by this section based on the taxpayer’s share of
16the qualified costs.
17(5) (A) “Seismic retrofit construction” means alteration of a
18qualified building or its components to substantially mitigate
19seismic damage. Seismic retrofit construction shall be
for work
20performed voluntarily, and for which qualified costs were paid or
21incurred, on or after January 1, 2016. Seismic retrofit construction
22shall include, but not be limited to, the following:
23(i) Anchoring the structure to the foundation.
24(ii) Bracing cripple walls.
25(iii) Bracing hot water heaters.
26(iv) Installing automatic gas shutoff valves.
27(v) Repairing or reinforcing the foundation to improve the
28integrity
of the foundation against seismic damage.
29(vi) Anchoring fuel storage.
30(vii) Installing earthquake resistant bracing system for
31mobilehomes that are registered with the Department of Housing
32and
Community Development.
33(B) Seismic retrofit construction does not include construction
34performed to bring a building into compliance with local building
35codes.
36(c) To be eligible for the credit under this section, the following
37shall apply:
38(1) The qualified taxpayer shall do all of the following:
39(A) Prior to seismic retrofit construction, obtain certification
40from the appropriate jurisdiction with local building code
P12 1enforcement authority that the building is an at-risk property. Upon
2the request of the Franchise Tax Board, the qualified taxpayer shall
3provide a copy of the certification to the Franchise Tax Board.
4(B) Obtain certification from the appropriate jurisdiction with
5authority for building code
enforcement, upon a review of the
6building, that the completed construction satisfies the definition
7of seismic retrofit construction. The certification shall identify
8what part of the completed construction, if any, is not seismic
9retrofit construction. Upon the request of the Franchise Tax Board,
10the qualified taxpayer shall provide a copy of the certification to
11the Franchise Tax Board.
12(C) Retain for his or her records a copy of the
certifications
13specified in
subparagraphs (A) and (B).
14(2) The jurisdiction with authority for building code enforcement
15in which a qualified building is located has entered into an
16agreement with the state to provide certifications pursuant to this
17section and to not seek reimbursement pursuant to Section 6 of
18Article XIII B of the California Constitution for any costs incurred
19in providing those certifications.
20(d) (1) The credit amount allowed in subdivision (a) shall be
21claimed by a qualified taxpayer at the rate of one-fifth of the credit
22amount for the taxable year in which the credit is allowed, and
23one-fifth of the credit amount for each of the subsequent four
24taxable years.
25(2) In the case where the credit allowed under this section
26exceeds the “net tax,” as defined in Section 17039, for a taxable
27year, the excess credit may be carried over to reduce the “net tax”
28in the following taxable year, and succeeding four taxable years,
29if necessary, until the credit has been exhausted.
30(e) For purposes of computing the credit provided by this
31section, the qualified costs shall be reduced by any grant provided
32by a public entity for the seismic retrofit construction.
33(f) This credit shall be in lieu of any other credit or deduction
34that the qualified taxpayer may otherwise claim pursuant to this
35part with respect to qualified costs.
36(g) Section 41 shall not apply to the credit allowed pursuant to
37this
section.
38(h) This section shall remain in effect only until December 1,
392021, and as of that date is repealed.
Section 23650 is added to the Revenue and Taxation
2Code, to read:
(a) For taxable years beginning on or after January 1,
42016, and before January 1, 2021, there shall be allowed to a
5qualified taxpayer a credit against the “tax,” as defined in Section
623036, in an amount equal to 30 percent of the qualified taxpayer’s
7qualified costs.
8(b) For purposes of this section:
9(1) “At-risk property” means a building that is deemed
10hazardous and in danger of collapse in the event of a catastrophic
11earthquake, including, but not limited to, soft story buildings,
12nonductile concrete residential buildings, and pre-1994 concrete
13residential buildings.
14(2) “Qualified building” means a building that has been certified
15as an at-risk property pursuant to subparagraph (A) of paragraph
16(1) of subdivision (c). A qualified building includes a mobilehome
17registered by the Department of Housing and Community
18Development.
19(3) “Qualified costs” means the costs paid or incurred by the
20qualified taxpayer for any completed seismic retrofit construction
21on a qualified building, including any engineering or architectural
22design work necessary to permit or complete the seismic retrofit
23
construction. “Qualified costs” do not include any of the following
24costs paid or incurred by the qualified taxpayer:
25(A) Maintenance, including abatement of deferred or inadequate
26maintenance, and correction of violations unrelated to the seismic
27retrofit construction.
28(B) Repair, including repair of earthquake damage.
29(C) Seismic retrofit construction required by local building
30codes as a result of addition, repair, building relocation, change
31of use, or occupancy.
32(D) Other work or improvement required by local building or
33planning codes as a result of the intended seismic retrofit
34construction.
35(E) Rent reductions or other associated compensation,
36compliance actions, or other related coordination involving the
37qualified taxpayer and any other party, including a tenant, insurer,
38or lender.
P14 1(F) Replacement of existing building components, including
2equipment, except as needed to complete the seismic retrofit
3construction.
4(G) Bracing or securing nonpermanent building contents.
5(H) The offset of costs, reimbursements, or other costs
6transferred from the qualified taxpayers to others.
7(I) Any amount paid by the qualified taxpayer to the jurisdiction
8with authority for building code enforcement for issuing the
9
certifications required pursuant to subdivision (c).
10(4) “Qualified taxpayer” means a taxpayer that is an owner of
11a qualified building located in this state. A taxpayer that owns a
12proportional share of a qualified building in this state may claim
13the credit allowed by this section based on the taxpayer’s share of
14the qualified costs.
15(5) (A) “Seismic retrofit construction” means alteration of a
16qualified building or its components to substantially mitigate
17seismic damage. Seismic retrofit construction shall be
for work
18performed voluntarily, and for which qualified costs were paid or
19incurred, on or after January 1, 2016. Seismic retrofit construction
20shall include, but not be limited to, the following:
21(i) Anchoring the structure to the foundation.
22(ii) Bracing cripple walls.
23(iii) Bracing hot water heaters.
24(iv) Installing automatic gas shutoff valves.
25(v) Repairing or reinforcing the foundation to improve the
26
integrity of the foundation against seismic damage.
27(vi) Anchoring fuel storage.
28(vii) Installing earthquake resistant bracing system for
29mobilehomes that are registered with the Department of Housing
30and Community Development.
31(B) Seismic retrofit construction does not include construction
32performed to bring a building into compliance with local building
33codes.
34(c) To be eligible for the credit under this section, the following
35
shall apply:
36(1) The qualified taxpayer shall do all of the following:
37(A) Prior to seismic retrofit construction, obtain certification
38from the appropriate jurisdiction with local building code
39enforcement authority that the building is an at-risk property. Upon
P15 1the request of the Franchise Tax Board, the qualified taxpayer shall
2provide a copy of the certification to the Franchise Tax Board.
3(B) Obtain certification from the appropriate jurisdiction with
4authority for building code
enforcement, upon a review of the
5building, that the completed construction satisfies the definition
6of seismic retrofit construction. The certification shall identify
7what part of the completed construction, if any, is not seismic
8retrofit construction. Upon the request of the Franchise Tax Board,
9the qualified taxpayer shall provide a copy of the certification to
10the Franchise Tax Board.
11(C) Retain for his or her records a copy of the
certifications
12specified in subparagraphs (A) and (B).
13(2) The jurisdiction with authority for building code enforcement
14in which a qualified building is located has entered into an
15agreement with the state to provide certifications pursuant to this
16section and to not seek reimbursement pursuant to Section 6 of
17Article XIII B of the California Constitution for any costs incurred
18in providing those certifications.
19(d) (1) The credit amount allowed in subdivision (a) shall be
20claimed by a qualified taxpayer at the
rate of one-fifth of the credit
21amount for the taxable year in which the credit is allowed, and
22one-fifth of the credit amount for each of the subsequent four
23taxable years.
24(2) In the case where the credit allowed under this section
25exceeds the “tax,” as defined in Section 23036, for a taxable year,
26the excess credit may be carried over to reduce the “tax” in the
27following taxable year, and succeeding four taxable years, if
28necessary, until the credit has been exhausted.
29(e) For purposes of computing the credit provided by this
30section, the qualified costs shall be reduced by any grant provided
31by a public entity for the seismic retrofit construction.
32(f) This credit shall be in lieu of any other credit or deduction
33that
the qualified taxpayer may otherwise claim pursuant to this
34part with respect to qualified costs.
35(g) Section 41 shall not apply to the credit allowed pursuant to
36this section.
37(h) This section shall remain in effect only until December 1,
382021, and as of that date is repealed.
This act provides for a tax levy within the meaning of
2Article IV of the Constitution and shall go into immediate effect.
O
96