BILL NUMBER: AB 428 AMENDED
BILL TEXT
AMENDED IN SENATE JUNE 17, 2015
AMENDED IN ASSEMBLY MAY 21, 2015
AMENDED IN ASSEMBLY MAY 12, 2015
INTRODUCED BY Assembly Member Nazarian
FEBRUARY 19, 2015
An act to add and repeal Sections 17053.50 and 23650 of the
Revenue and Taxation Code, relating to taxation, to take effect
immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 428, as amended, Nazarian. Income taxes
taxes: 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, 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.
2017, 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.
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 17053.50 is added to the
Revenue and Taxation Code , to read:
17053.50. (a) For taxable years beginning on or after January 1,
2017, and before January 1, 2022, there shall be allowed to a
qualified taxpayer a credit against the "net tax," as defined in
Section 17039, in an amount equal to 30 percent of the qualified
taxpayer's qualified costs.
(b) For purposes of this section:
(1) "At-risk property" means a building that is deemed hazardous
and in danger of collapse in the event of a catastrophic earthquake,
including, but not limited to, soft story buildings, nonductile
concrete residential buildings, and pre-1994 concrete residential
buildings.
(2) "Qualified building" means a building that has been certified
as an at-risk property pursuant to subparagraph (A) of paragraph (1)
of subdivision (c). A qualified building includes a mobilehome
registered by the Department of Housing and Community Development.
(3) "Qualified costs" means the costs paid or incurred by the
qualified taxpayer for any completed seismic retrofit construction on
a qualified building, including any engineering or architectural
design work necessary to permit or complete the seismic retrofit
construction less the amount of any grant provided by a public entity
for the seismic retrofit construction. "Qualified costs" do not
include any of the following costs paid or incurred by the qualified
taxpayer:
(A) Maintenance, including abatement of deferred or inadequate
maintenance, and correction of violations unrelated to the seismic
retrofit construction.
(B) Repair, including repair of earthquake damage.
(C) Seismic retrofit construction required by local building codes
as a result of addition, repair, building relocation, change of use,
or occupancy.
(D) Other work or improvement required by local building or
planning codes as a result of the intended seismic retrofit
construction.
(E) Rent reductions or other associated compensation, compliance
actions, or other related coordination involving the qualified
taxpayer and any other party, including a tenant, insurer, or lender.
(F) Replacement of existing building components, including
equipment, except as needed to complete the seismic retrofit
construction.
(G) Bracing or securing nonpermanent building contents.
(H) The offset of costs, reimbursements, or other costs
transferred from the qualified taxpayers to others.
(I) Any amount paid by the qualified taxpayer to the jurisdiction
with authority for building code enforcement for issuing the
certifications required pursuant to subparagraphs (A) and (B) of
paragraph (1) of subdivision (c).
(4) "Qualified taxpayer" means a taxpayer that is an owner of a
qualified building located in this state. A taxpayer that owns a
proportional share of a qualified building in this state may claim
the credit allowed by this section based on the taxpayer's share of
the qualified costs.
(5) (A) "Seismic retrofit construction" means alteration of a
qualified building or its components to substantially mitigate
seismic damage. Seismic retrofit construction shall be for work
performed, and for which qualified costs were paid or incurred, on or
after January 1, 2017. Seismic retrofit construction shall include,
but not be limited to, the following:
(i) Anchoring the structure to the foundation.
(ii) Bracing cripple walls.
(iii) Bracing hot water heaters.
(iv) Installing automatic gas shutoff valves.
(v) Repairing or reinforcing the foundation to improve the
integrity of the foundation against seismic damage.
(vi) Anchoring fuel storage.
(vii) Installing an earthquake resistant bracing system for
mobilehomes that are registered with the Department of Housing and
Community Development.
(B) Notwithstanding subparagraph (A), seismic retrofit
construction does not include construction performed to bring a
building into compliance with local building codes.
(c) To be eligible for the credit, the following shall apply:
(1) The qualified taxpayer shall do all of the following:
(A) Prior to the seismic retrofit construction, obtain
certification from the appropriate jurisdiction with local building
code enforcement authority that the building is an at-risk property.
(B) Obtain certification from the appropriate jurisdiction with
authority for building code enforcement, upon a review of the
building, that the completed construction satisfies the definition of
seismic retrofit construction. The certification shall identify what
part of the completed construction, if any, is not seismic retrofit
construction, and specify a dollar amount of qualified costs.
(C) Request and be granted an allocation of the credit from the
Franchise Tax Board. To request an allocation, the taxpayer shall
sign and submit to the Franchise Tax Board an application to receive
a credit for the seismic retrofit construction and provide a copy of
the certification obtained pursuant to subparagraph (B).
(D) Retain for his or her records a copy of the certifications
specified in subparagraphs (A) and (B).
(2) The jurisdiction with authority for building code enforcement
in which a qualified building is located has entered into an
agreement with the state to provide certifications pursuant to this
section and to not seek reimbursement pursuant to Section 6 of
Article XIII B of the California Constitution for any costs incurred
in providing those certifications.
(d) (1) The credit amount allowed in subdivision (a) shall be
claimed by a qualified taxpayer at the rate of one-fifth of the
credit amount for the taxable year in which the credit is allowed,
and one-fifth of the credit amount for each of the subsequent four
taxable years.
(2) In the case where the credit allowed under this section
exceeds the "net tax," as defined in Section 17039, for a taxable
year, the excess credit may be carried over to reduce the "net tax"
in the following taxable year, and succeeding four taxable years, if
necessary, until the credit has been exhausted.
(e) (1) The total amount of credit that may be allocated pursuant
to this section and Section 23650 shall not exceed the sum of the
following:
(A) Twelve million dollars ($12,000,000) for the 2017 calendar
year and each calendar year thereafter.
(B) The amount of previously unallocated credits allowed under
this section.
(2) Upon receipt of the application and certification described in
subparagraph (C) of paragraph (1) of subdivision (c), the Franchise
Tax Board shall notify the taxpayer of the amount, if any, of credit
allowed and allocate the credit to a qualified taxpayer on a
first-come-first-served basis.
(3) (A) The taxpayer shall claim the credit on a timely filed
original return.
(B) The determination of the Franchise Tax Board with respect to
the allocation of the credit, and whether a return has been timely
filed for purposes of this subdivision may not be reviewed in any
administrative or judicial proceeding.
(C) Any disallowance of a credit claimed due to a determination
under this subdivision, including the application of the limitation
specified in paragraph (1), shall be treated as a mathematical error
appearing on the return. Any amount of tax resulting from that
disallowance may be assessed by the Franchise Tax Board in the same
manner as provided by Section 19051.
(f) This credit shall be in lieu of any other credit or deduction
that the qualified taxpayer may otherwise claim pursuant to this part
with respect to qualified costs.
(g) The Franchise Tax Board may prescribe rules, guidelines, or
procedures necessary or appropriate to carry out the purposes of this
section, including any guidelines regarding the allocation of the
credit allowed under this section. Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code does not apply to any rule, guideline, or procedure prescribed
by the Franchise Tax Board pursuant to this section.
(h) Section 41 shall not apply to the credit allowed pursuant to
this section.
(i) This section shall remain in effect only until December 1,
2022, and as of that date is repealed.
SEC. 2. Section 23650 is added to the
Revenue and Taxation Code , to read:
23650. (a) For taxable years beginning on or after January 1,
2017, and before January 1, 2022, there shall be allowed to a
qualified taxpayer a credit against the "tax," as defined in Section
23036, in an amount equal to 30 percent of the qualified taxpayer's
qualified costs.
(b) For purposes of this section:
(1) "At-risk property" means a building that is deemed hazardous
and in danger of collapse in the event of a catastrophic earthquake,
including, but not limited to, soft story buildings, nonductile
concrete residential buildings, and pre-1994 concrete residential
buildings.
(2) "Qualified building" means a building that has been certified
as an at-risk property pursuant to subparagraph (A) of paragraph (1)
of subdivision (c). A qualified building includes a mobilehome
registered by the Department of Housing and Community Development.
(3) "Qualified costs" means the costs paid or incurred by the
qualified taxpayer for any completed seismic retrofit construction on
a qualified building, including any engineering or architectural
design work necessary to permit or complete the seismic retrofit
construction less the amount of any grant provided by a public entity
for the seismic retrofit construction. "Qualified costs" do not
include any of the following costs paid or incurred by the qualified
taxpayer:
(A) Maintenance, including abatement of deferred or inadequate
maintenance, and correction of violations unrelated to the seismic
retrofit construction.
(B) Repair, including repair of earthquake damage.
(C) Seismic retrofit construction required by local building codes
as a result of addition, repair, building relocation, change of use,
or occupancy.
(D) Other work or improvement required by local building or
planning codes as a result of the intended seismic retrofit
construction.
(E) Rent reductions or other associated compensation, compliance
actions, or other related coordination involving the qualified
taxpayer and any other party, including a tenant, insurer, or lender.
(F) Replacement of existing building components, including
equipment, except as needed to complete the seismic retrofit
construction.
(G) Bracing or securing nonpermanent building contents.
(H) The offset of costs, reimbursements, or other costs
transferred from the qualified taxpayers to others.
(I) Any amount paid by the qualified taxpayer to the jurisdiction
with authority for building code enforcement for issuing the
certifications required pursuant to subparagraphs (A) and (B) of
paragraph (1) of subdivision (c).
(4) "Qualified taxpayer" means a taxpayer that is an owner of a
qualified building located in this state. A taxpayer that owns a
proportional share of a qualified building in this state may claim
the credit allowed by this section based on the taxpayer's share of
the qualified costs.
(5) (A) "Seismic retrofit construction" means alteration of a
qualified building or its components to substantially mitigate
seismic damage. Seismic retrofit construction shall be for work
performed, and for which qualified costs were paid or incurred, on or
after January 1, 2017. Seismic retrofit construction shall include,
but not be limited to, the following:
(i) Anchoring the structure to the foundation.
(ii) Bracing cripple walls.
(iii) Bracing hot water heaters.
(iv) Installing automatic gas shutoff valves.
(v) Repairing or reinforcing the foundation to improve the
integrity of the foundation against seismic damage.
(vi) Anchoring fuel storage.
(vii) Installing an earthquake resistant bracing system for
mobilehomes that are registered with the Department of Housing and
Community Development.
(B) Notwithstanding subparagraph (A), seismic retrofit
construction does not include construction performed to bring a
building into compliance with local building codes.
(c) To be eligible for the credit, the following shall apply:
(1) The qualified taxpayer shall do all of the following:
(A) Prior to the seismic retrofit construction, obtain
certification from the appropriate jurisdiction with local building
code enforcement authority that the building is an at-risk property.
(B) Obtain certification from the appropriate jurisdiction with
authority for building code enforcement, upon a review of the
building, that the completed construction satisfies the definition of
seismic retrofit construction. The certification shall identify what
part of the completed construction, if any, is not seismic retrofit
construction and specify a dollar amount of qualified costs.
(C) Request and be granted an allocation of the credit from the
Franchise Tax Board. To request an allocation, the taxpayer shall
sign and submit to the Franchise Tax Board an application to receive
a credit for the seismic retrofit construction and provide a copy of
the certification obtained pursuant to subparagraph (B).
(D) Retain for his or her records a copy of the certifications
specified in subparagraph (A) and (B).
(2) The jurisdiction with authority for building code enforcement
in which a qualified building is located has entered into an
agreement with the state to provide certifications pursuant to this
section and to not seek reimbursement pursuant to Section 6 of
Article XIII B of the California Constitution for any costs incurred
in providing those certifications.
(d) (1) The credit amount allowed in subdivision (a) shall be
claimed by a qualified taxpayer at the rate of one-fifth of the
credit amount for the taxable year in which the credit is allowed,
and one-fifth of the credit amount for each of the subsequent four
taxable years.
(2) In the case where the credit allowed under this section
exceeds the "tax," as defined in Section 23036, for a taxable year,
the excess credit may be carried over to reduce the "tax" in the
following taxable year, and succeeding four taxable years, if
necessary, until the credit has been exhausted.
(e) (1) The total amount of credit that may be allocated pursuant
to this section and Section 17053.50 shall not exceed the sum of the
following:
(A) Twelve million dollars ($12,000,000) for the 2017 calendar
year and each calendar year thereafter.
(B) The amount of previously unallocated credits allowed under
this section.
(2) Upon receipt of the application and certifications described
in subparagraph (C) of paragraph (1) of subdivision (c), the
Franchise Tax Board shall notify the taxpayer of the amount, if any,
of credit allowed and allocate the credit to a qualified taxpayer on
a first-come-first-served basis.
(3) (A) The taxpayer shall claim the credit on a timely filed
original return.
(B) The determination of the Franchise Tax Board with respect to
the allocation of the credit, and whether a return has been timely
filed for purposes of this subdivision may not be reviewed in any
administrative or judicial proceeding.
(C) Any disallowance of a credit claimed due to a determination
under this subdivision, including the application of the limitation
specified in paragraph (1), shall be treated as a mathematical error
appearing on the return. Any amount of tax resulting from that
disallowance may be assessed by the Franchise Tax Board in the same
manner as provided by Section 19051.
(f) This credit shall be in lieu of any other credit or deduction
that the qualified taxpayer may otherwise claim pursuant to this part
with respect to qualified costs.
(g) The Franchise Tax Board may prescribe rules, guidelines, or
procedures necessary or appropriate to carry out the purposes of this
section, including any guidelines regarding the allocation of the
credit allowed under this section. Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 of the Government
Code does not apply to any rule, guideline, or procedure prescribed
by the Franchise Tax Board pursuant to this section.
(h) Section 41 shall not apply to the credit allowed pursuant to
this section.
(i) This section shall remain in effect only until December 1,
2022, 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. Section 17053.50 is added to the
Revenue and Taxation Code, to read:
17053.50. (a) For taxable years beginning on or after January 1,
2016, and before January 1, 2021, there shall be allowed to a
qualified taxpayer a credit against the "net tax," as defined in
Section 17039, in an amount equal to 30 percent of the qualified
taxpayer's qualified costs.
(b) For purposes of this section:
(1) "At-risk property" means a building that is deemed hazardous
and in danger of collapse in the event of a catastrophic earthquake,
including, but not limited to, soft story buildings, nonductile
concrete residential buildings, and pre-1994 concrete residential
buildings.
(2) "Qualified building" means a building that has been certified
as an at-risk property pursuant to subparagraph (A) of paragraph (1)
of subdivision (c). A qualified building includes a mobilehome
registered by the Department of Housing and Community Development.
(3) "Qualified costs" means the costs paid or incurred by the
qualified taxpayer for any completed seismic retrofit construction on
a qualified building, including any engineering or architectural
design work necessary to permit or complete the seismic retrofit
construction. "Qualified costs" do not include any of the following
costs paid or incurred by the qualified taxpayer:
(A) Maintenance, including abatement of deferred or inadequate
maintenance, and correction of violations unrelated to the seismic
retrofit construction.
(B) Repair, including repair of earthquake damage.
(C) Seismic retrofit construction required by local building codes
as a result of addition, repair, building relocation, change of use,
or occupancy.
(D) Other work or improvement required by local building or
planning codes as a result of the intended seismic retrofit
construction.
(E) Rent reductions or other associated compensation, compliance
actions, or other related coordination involving the qualified
taxpayer and any other party, including a tenant, insurer, or lender.
(F) Replacement of existing building components, including
equipment, except as needed to complete the seismic retrofit
construction.
(G) Bracing or securing nonpermanent building contents.
(H) The offset of costs, reimbursements, or other costs
transferred from the qualified taxpayers to others.
(I) Any amount paid by the qualified taxpayer to the jurisdiction
with authority for building code enforcement for issuing the
certifications required pursuant to subdivision (c).
(4) "Qualified taxpayer" means a taxpayer that is an owner of a
qualified building located in this state. A taxpayer that owns a
proportional share of a qualified building in this state may claim
the credit allowed by this section based on the taxpayer's share of
the qualified costs.
(5) (A) "Seismic retrofit construction" means alteration of a
qualified building or its components to substantially mitigate
seismic damage. Seismic retrofit construction shall be for work
performed voluntarily, and for which qualified costs were paid or
incurred, on or after January 1, 2016. Seismic retrofit construction
shall include, but not be limited to, the following:
(i) Anchoring the structure to the foundation.
(ii) Bracing cripple walls.
(iii) Bracing hot water heaters.
(iv) Installing automatic gas shutoff valves.
(v) Repairing or reinforcing the foundation to improve the
integrity of the foundation against seismic damage.
(vi) Anchoring fuel storage.
(vii) Installing earthquake resistant bracing system for
mobilehomes that are registered with the Department of Housing and
Community Development.
(B) Seismic retrofit construction does not include construction
performed to bring a building into compliance with local building
codes.
(c) To be eligible for the credit under this section, the
following shall apply:
(1) The qualified taxpayer shall do all of the following:
(A) Prior to seismic retrofit construction, obtain certification
from the appropriate jurisdiction with local building code
enforcement authority that the building is an at-risk property. Upon
the request of the Franchise Tax Board, the qualified taxpayer shall
provide a copy of the certification to the Franchise Tax Board.
(B) Obtain certification from the appropriate jurisdiction with
authority for building code enforcement, upon a review of the
building, that the completed construction satisfies the definition of
seismic retrofit construction. The certification shall identify what
part of the completed construction, if any, is not seismic retrofit
construction. Upon the request of the Franchise Tax Board, the
qualified taxpayer shall provide a copy of the certification to the
Franchise Tax Board.
(C) Retain for his or her records a copy of the certifications
specified in subparagraphs (A) and (B).
(2) The jurisdiction with authority for building code enforcement
in which a qualified building is located has entered into an
agreement with the state to provide certifications pursuant to this
section and to not seek reimbursement pursuant to Section 6 of
Article XIII B of the California Constitution for any costs incurred
in providing those certifications.
(d) (1) The credit amount allowed in subdivision (a) shall be
claimed by a qualified taxpayer at the rate of one-fifth of the
credit amount for the taxable year in which the credit is allowed,
and one-fifth of the credit amount for each of the subsequent four
taxable years.
(2) In the case where the credit allowed under this section
exceeds the "net tax," as defined in Section 17039, for a taxable
year, the excess credit may be carried over to reduce the "net tax"
in the following taxable year, and succeeding four taxable years, if
necessary, until the credit has been exhausted.
(e) For purposes of computing the credit provided by this section,
the qualified costs shall be reduced by any grant provided by a
public entity for the seismic retrofit construction.
(f) This credit shall be in lieu of any other credit or deduction
that the qualified taxpayer may otherwise claim pursuant to this part
with respect to qualified costs.
(g) Section 41 shall not apply to the credit allowed pursuant to
this section.
(h) This section shall remain in effect only until December 1,
2021, and as of that date is repealed.
SEC. 2. Section 23650 is added to the Revenue
and Taxation Code, to read:
23650. (a) For taxable years beginning on or after January 1,
2016, and before January 1, 2021, there shall be allowed to a
qualified taxpayer a credit against the "tax," as defined in Section
23036, in an amount equal to 30 percent of the qualified taxpayer's
qualified costs.
(b) For
purposes of this section:
(1) "At-risk property" means a building that is deemed hazardous
and in danger of collapse in the event of a catastrophic earthquake,
including, but not limited to, soft story buildings, nonductile
concrete residential buildings, and pre-1994 concrete residential
buildings.
(2) "Qualified building" means a building that has been certified
as an at-risk property pursuant to subparagraph (A) of paragraph (1)
of subdivision (c). A qualified building includes a mobilehome
registered by the Department of Housing and Community Development.
(3) "Qualified costs" means the costs paid or incurred by the
qualified taxpayer for any completed seismic retrofit construction on
a qualified building, including any engineering or architectural
design work necessary to permit or complete the seismic retrofit
construction. "Qualified costs" do not include any of the following
costs paid or incurred by the qualified taxpayer:
(A) Maintenance, including abatement of deferred or inadequate
maintenance, and correction of violations unrelated to the seismic
retrofit construction.
(B) Repair, including repair of earthquake damage.
(C) Seismic retrofit construction required by local building codes
as a result of addition, repair, building relocation, change of use,
or occupancy.
(D) Other work or improvement required by local building or
planning codes as a result of the intended seismic retrofit
construction.
(E) Rent reductions or other associated compensation, compliance
actions, or other related coordination involving the qualified
taxpayer and any other party, including a tenant, insurer, or lender.
(F) Replacement of existing building components, including
equipment, except as needed to complete the seismic retrofit
construction.
(G) Bracing or securing nonpermanent building contents.
(H) The offset of costs, reimbursements, or other costs
transferred from the qualified taxpayers to others.
(I) Any amount paid by the qualified taxpayer to the jurisdiction
with authority for building code enforcement for issuing the
certifications required pursuant to subdivision (c).
(4) "Qualified taxpayer" means a taxpayer that is an owner of a
qualified building located in this state. A taxpayer that owns a
proportional share of a qualified building in this state may claim
the credit allowed by this section based on the taxpayer's share of
the qualified costs.
(5) (A) "Seismic retrofit construction" means alteration of a
qualified building or its components to substantially mitigate
seismic damage. Seismic retrofit construction shall be for work
performed voluntarily, and for which qualified costs were paid or
incurred, on or after January 1, 2016. Seismic retrofit construction
shall include, but not be limited to, the following:
(i) Anchoring the structure to the foundation.
(ii) Bracing cripple walls.
(iii) Bracing hot water heaters.
(iv) Installing automatic gas shutoff valves.
(v) Repairing or reinforcing the foundation to improve the
integrity of the foundation against seismic damage.
(vi) Anchoring fuel storage.
(vii) Installing earthquake resistant bracing system for
mobilehomes that are registered with the Department of Housing and
Community Development.
(B) Seismic retrofit construction does not include construction
performed to bring a building into compliance with local building
codes.
(c) To be eligible for the credit under this section, the
following shall apply:
(1) The qualified taxpayer shall do all of the following:
(A) Prior to seismic retrofit construction, obtain certification
from the appropriate jurisdiction with local building code
enforcement authority that the building is an at-risk property. Upon
the request of the Franchise Tax Board, the qualified taxpayer shall
provide a copy of the certification to the Franchise Tax Board.
(B) Obtain certification from the appropriate jurisdiction with
authority for building code enforcement, upon a review of the
building, that the completed construction satisfies the definition of
seismic retrofit construction. The certification shall identify what
part of the completed construction, if any, is not seismic retrofit
construction. Upon the request of the Franchise Tax Board, the
qualified taxpayer shall provide a copy of the certification to the
Franchise Tax Board.
(C) Retain for his or her records a copy of the certifications
specified in subparagraphs (A) and (B).
(2) The jurisdiction with authority for building code enforcement
in which a qualified building is located has entered into an
agreement with the state to provide certifications pursuant to this
section and to not seek reimbursement pursuant to Section 6 of
Article XIII B of the California Constitution for any costs incurred
in providing those certifications.
(d) (1) The credit amount allowed in subdivision (a) shall be
claimed by a qualified taxpayer at the rate of one-fifth of the
credit amount for the taxable year in which the credit is allowed,
and one-fifth of the credit amount for each of the subsequent four
taxable years.
(2) In the case where the credit allowed under this section
exceeds the "tax," as defined in Section 23036, for a taxable year,
the excess credit may be carried over to reduce the "tax" in the
following taxable year, and succeeding four taxable years, if
necessary, until the credit has been exhausted.
(e) For purposes of computing the credit provided by this section,
the qualified costs shall be reduced by any grant provided by a
public entity for the seismic retrofit construction.
(f) This credit shall be in lieu of any other credit or deduction
that the qualified taxpayer may otherwise claim pursuant to this part
with respect to qualified costs.
(g) Section 41 shall not apply to the credit allowed pursuant to
this section.
(h) This section shall remain in effect only until December 1,
2021, 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.