Amended in Assembly May 2, 2016

California Legislature—2015–16 Regular Session

Assembly Bill No. 2675

Introduced by Assembly Member Chiu

February 19, 2016

An act to add Section 6012.10 to, and to add and repeal Sections 17053.61 and 23661 of, the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.

LEGISLATIVE COUNSEL’S DIGEST

AB 2675, as amended, Chiu. Sales and use tax exclusion: income taxes credits: electric vehicle infrastructure.

(1) Existing sales and use tax laws impose taxes on retailers, measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state, measured by sales price. The Sales and Use Tax Law defines the terms “gross receipts” and “sales price.”

This bill, on and after January 1, 2017, and before January 1, 2020, would exclude from the terms “gross receipts” and “sales price” begin delete 10 percent end delete begin insert 10% end insert of the gross receipts or sales price of electric vehicle infrastructure, as defined, begin delete that is sold, stored, used, or consumed in this state prior to January 1, 2020. end delete begin insert purchased for use at a qualified dwelling, as defined. end insert The bill would limit this exclusion to that amount of gross receipts or sales price that does not exceed $400,000.

The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes begin delete counties and end delete cities begin insert and counties end insert to impose local sales and use taxes in conformity with the Sales and Use Tax Law, and existing law authorizes districts, as specified, to impose transactions and use taxes begin delete generally end delete in accordance with the Transactions and Use Tax Law, which generally conforms to the Sales and Use Tax Law. Exemptions from state sales and use taxes are incorporated into these laws.

This bill would specify that this exclusion does not apply to local sales and use taxes or transactions and use taxes.

(2) 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, 2017, and before January 1, 2020, in an amount equal to 10% of the costs paid or incurred by the taxpayer for the purchase of electric vehicle infrastructure, as defined, during the taxable year begin insert for use at a qualified dwelling, as defined end insert , not to exceed $2,500, as specified.

(3) 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 6012.10 is added to the Revenue and
Taxation Code, to read:

6012.10.  

(a) On and after January 1, 2017, and before January
1, 2020, begin delete and except as provided in paragraph (3) of subdivision
(b), end delete for the purposes of this part, “gross receipts” and “sales price”
shall not include 10 percent of the qualified gross receipts or
qualified sales price of electric vehicle infrastructure begin delete sold, stored,
used, or consumed end delete begin insert purchased for use at a qualified dwelling end insert in
this state.

(b) As used in this section, the following definitions shall apply:

begin insert

(1) “Battery charging station” means any level of electric
vehicle supply equipment station that is designed and built in
compliance with Article 625 of the 2013 California Electrical Code
and delivers electricity from a source outside an electric vehicle
into a plug-in electric vehicle.

end insert begin delete

(1)

end delete

begin insert (2) end insert  “Electric vehicle infrastructure” means structures, machinery,
and equipment necessary and integral to support an electric vehicle,
including begin insert a end insert battery charging begin delete stations, end delete begin insert station, end insert battery exchange
begin delete stations, end delete begin insert station, end insert and rapid charging begin delete stations. end delete begin insert station. end insert

begin delete

(2)

end delete

begin insert (3) end insert  “Rapid charging station” means an industrial grade electrical
outlet that allows for faster charging of electric vehicle batteries
through higher power begin delete levels, which meets or exceeds end delete begin insert levels that
meet or exceed end insert any existing standards, codes, or regulations in
effect at the time of purchase.

begin delete

(3)

end delete

begin insert (4) end insert  “Qualified gross receipts” and “qualified sales price” mean
that amount of gross receipts or sales price that does not exceed
four hundred thousand dollars ($400,000).

begin insert

(5) “Qualified dwelling” means a multiunit dwelling, also known
as a multifamily residence or multifamily dwelling unit, a
mobilehome or manufactured home located at a mobilehome park,
duplex, townhome, apartment, and condominium.

end insert

(c) Notwithstanding any provision of the Bradley-Burns Uniform
Local Sales and Use Tax Law (Part 1.5 (commencing with Section
7200)) or the Transactions and Use Tax Law (Part 1.6
(commencing with Section 7251)), the exclusion established by
this section shall not apply with respect to any tax levied by a
county, city, or district pursuant to, or in accordance with, either
of those laws.

SEC. 2.  

Section 17053.61 is added to the Revenue and Taxation
Code, to read:

17053.61.  

(a) For each taxable year beginning on or after
January 1, 2017, and before January 1, 2020, there shall be allowed
a credit against the “net tax,” as defined in Section 17039, for the
taxable year in an amount equal to 10 percent of the amount paid
or incurred by the taxpayer for begin delete the acquisition of end delete electric vehicle
infrastructure during the taxable begin delete year, end delete begin insert year for use at a qualified
dwelling, end insert not to exceed two thousand five hundred dollars ($2,500).

begin delete

(b) For the purposes of this section, the term “electric vehicle
infrastructure” has the same meaning as specified in Section
6012.10.

end delete begin insert

(b) As used in this section, the following definitions shall apply:

end insert begin insert

(1) “Battery charging station” means any level of electric
vehicle supply equipment station that is designed and built in
compliance with Article 625 of the 2013 California Electrical
Code, and delivers electricity from a source outside an electric
vehicle into a plug-in electric vehicle.

end insert begin insert

(2) “Electric vehicle infrastructure” means structures,
machinery, and equipment necessary and integral to support an
electric vehicle, including a battery charging station, battery
exchange station, and rapid charging station.

end insert begin insert

(3) “Qualified dwelling” means a multiunit dwelling, also known
as a multifamily residence or multifamily dwelling unit, a
mobilehome or manufactured home located at a mobilehome park,
duplex, townhome, apartment, and condominium.

end insert begin insert

(4) “Rapid charging station” means an industrial grade
electrical outlet that allows for faster charging of electric vehicle
batteries through higher power levels that meet or exceed any
existing standards, codes, or regulations in effect at the time of
purchase.

end insert

(c) 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 succeeding three years, if
necessary, until the credit is exhausted.

(d) The Franchise Tax Board may prescribe rules, guidelines,
or procedures necessary or appropriate to carry out the purposes
of this section. Chapter 3.5 (commencing with Section 11340) of
Part 1 of Division 3 of Title 2 of the Government Code shall not
apply to any rule, guideline, or procedure prescribed by the
Franchise Tax Board pursuant to this section.

(e) Section 41 does not apply to the credit allowed by this
section.

(f) This section begin delete shall remain in effect only until end delete begin insert is repealed on end insert
December 1, begin delete 2020, and as of that date is repealed. end delete begin insert 2020. end insert

SEC. 3.  

Section 23661 is added to the Revenue and Taxation
Code, to read:

23661.  

(a) For each taxable year beginning on or after January
1, 2017, and before January 1, 2020, there shall be allowed a credit
against the “tax,” as defined in Section 23036, for the taxable year
in an amount equal to 10 percent of the amount paid or incurred
by the taxpayer for begin delete the acquisition of end delete electric vehicle infrastructure
during the taxable begin delete year, end delete begin insert year for use at a qualified dwelling, end insert not
to exceed two thousand five hundred dollars ($2,500).

begin delete

(b) For the purposes of this section, the term “electric vehicle
infrastructure” has the same meaning as specified in Section
6012.10.

end delete begin insert

(b) As used in this section, the following definitions shall apply:

end insert begin insert

(1) “Battery charging station” means any level of electric
vehicle supply equipment station that is designed and built in
compliance with Article 625 of the 2013 California Electrical
Code, and delivers electricity from a source outside an electric
vehicle into a plug-in electric vehicle.

end insert begin insert

(2) “Electric vehicle infrastructure” means structures,
machinery, and equipment necessary and integral to support an
electric vehicle, including a battery charging station, battery
exchange station, and rapid charging station.

end insert begin insert

(3) “Qualified dwelling” means a multiunit dwelling, also known
as a multifamily residence or multifamily dwelling unit, a
mobilehome or manufactured home located at a mobilehome park,
duplex, townhome, apartment, and condominium.

end insert begin insert

(4) “Rapid charging station” means an industrial grade
electrical outlet that allows for faster charging of electric vehicle
batteries through higher power levels that meet or exceed any
existing standards, codes, or regulations in effect at the time of
purchase.

end insert

(c) 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 succeeding three years, if necessary,
until the credit is exhausted.

(d) The Franchise Tax Board may prescribe rules, guidelines,
or procedures necessary or appropriate to carry out the purposes
of this section. Chapter 3.5 (commencing with Section 11340) of
Part 1 of Division 3 of Title 2 of the Government Code shall not
apply to any rule, guideline, or procedure prescribed by the
Franchise Tax Board pursuant to this section.

(e) Section 41 does not apply to the credit allowed by this
section.

(f) This section begin delete shall remain in effect only until end delete begin insert is repealed on end insert
December 1, begin delete 2020, and as of that date is repealed. end delete begin insert 2020. end insert

SEC. 4.  

This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.