AB 585, as introduced, Melendez. Outdoor Water Efficiency Act of 2015: income tax credits: outdoor water efficiency.
The Personal Income Tax Law allows various credits against the taxes imposed by that law.
This bill, for taxable years beginning on or after January 1, 2015, and before January 1, 2021, or an earlier specified date, would allow a credit equal to 25% of the amount paid or incurred by a qualified taxpayer for improvements made to outdoor landscapes on real property in this state, not to exceed $2,500 per taxable year, as specified.
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:
The Legislature finds and declares all of the
2following:
3(a) The 2014 water year, ending on September 30, was the third
4driest based on the 119-year long statewide precipitation record.
P2 1(b) Temperatures in the first nine months of 2014 were record
2breaking-4.1 degrees above the 20th century average across the
3state.
4(c) Responding to these unprecedented dry and hot conditions,
5the United States Drought Monitor classified more than 80 percent
6of California in an “extreme” drought condition, with 58% of
7California in an “exceptional” drought, the highest condition.
8(d) On January 17, 2014, the Governor called upon retail water
9providers throughout California to reduce residential per capita
10water use by 20% as compared to 2013 levels.
11(e) Outdoor water use accounts for the highest percentage of
12regional water use.
13(f) Landscape design, installation, maintenance, and
14management can and should be water efficient. The use of
15water-efficient landscapes contributes to the state’s efforts to
16increase the reliability of its water supplies.
17(g) Municipalities and local water agencies are tasked with
18enforcing water conservation ordinances to eliminate water waste
19and restrict outdoor water use.
20(h) It is the intent of the Legislature to provide an income tax
21
credit for the purchase of outdoor water use efficiency
22improvements during the exceptional drought that California is
23facing.
Section 17053.37 is added to the Revenue and Taxation
25Code, to read:
(a) For each taxable year beginning on or after
27January 1, 2015, and before January 1, 2021, there shall be allowed
28as a credit against the “net tax,” as defined in Section 17039, an
29amount equal to 25 percent of the amount paid or incurred during
30the taxable year by a qualified taxpayer for water-efficiency
31improvements for outdoor landscapes on qualified real property
32in this state, not exceed two thousand five hundred dollars ($2,500)
33per taxable year.
34(b) For the purposes of this section, the following definitions
35shall apply:
36(1) “Multifamily residential real property” means any real
37property that is improved with, or consisting of, a building
38
containing more than one unit that is intended for human habitation,
39or any mixed residential-commercial buildings or portions thereof
40that are intended for human habitation. Multifamily residential
P3 1real property includes residential hotels but does not include hotels
2and motels that are not residential hotels.
3(2) “Qualified real property” means either multifamily
4residential real property or single-family real property.
5(3) “Qualified taxpayer” means the owner of any qualified real
6property.
7(4) “Single-family residential real property” means any real
8property that is improved with, or consisting of, a building
9containing not more than one unit that is intended for human
10habitation.
11(5) “Water-efficiency improvements” means any expenditure
12paid or
incurred by the qualified taxpayer to meet a locally adopted,
13water-efficient landscape ordinance, regulation, or established
14outdoor landscape efficiency program.
15(c) Section 42 does not apply to the credit allowed by this
16section.
17(d) This section shall remain in effect until December 1, 2021,
18and as of that date is repealed, unless the drought state of
19emergency declared by the Governor on January 17, 2014, is
20terminated before that date, in accordance with Section 8629 of
21the Government Code. In that event, this section shall remain
22operative only until midnight on the first day of the first calendar
23quarter commencing more than 60 days after the date of the
24termination of the state of emergency, and credits shall be allowed
25only for taxable years beginning on or before the date this section
26becomes inoperative, and as of December 1, 2021, is repealed.
This act provides for a tax levy within the meaning of
28Article IV of the Constitution and shall go into immediate effect.
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