BILL NUMBER: AB 274	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Coto

                        FEBRUARY 9, 2007

   An act to add Sections 17053.15 and 23615 to the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 274, as introduced, Coto. Taxation: credit: brownfield cleanup.

   The Personal Income and Corporation Tax Law authorize various
credits against the taxes imposed by those laws.
   This bill would authorize a credit against those taxes for a
qualified "brownfield" property owner for each taxable year beginning
on or after January 1, 2007, in an amount equal to the costs paid or
incurred to clean up a polluted brownfield property, as defined, to
a satisfactory level, as evidenced by a written certification of
completion, as defined.
   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 17053.15 is added to the Revenue and Taxation
Code, to read:
   17053.15.  (a) For each taxable year beginning on or after January
1, 2007, there shall be allowed to a qualified "brownfield" property
owner as a credit against the "net tax," as defined in Section
17039, an amount equal to the costs paid or incurred during the
taxable year to clean up a polluted "brownfield" property to a
satisfactory level, as evidenced by a written certification of
completion.
   (b) For purposes of this section:
   (1) "Brownfield property" means a property as defined in paragraph
(2) of subdivision (a) of Section 25395.20 of the Health and Safety
Code.
   (2) "Written certification of completion" means an evaluation by
the Department of Toxic Substances Control of the effectiveness of a
removal or remedial action conducted by a responsible party, to
reduce or eliminate actual or potential public health and
environmental threats posed by a hazardous substance release site if
the action itself is not the subject of oversight by the Department
of Toxic Substances Control.
   (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 succeeding years if necessary, until the
credit is exhausted.
  SEC. 2.  Section 23615 is added to the Revenue and Taxation Code,
to read:
   23615.  (a) For each taxable year beginning on or after January 1,
2007, there shall be allowed to a qualified "brownfield" property
owner as a credit against the "tax," as defined in Section 23036, an
amount equal to the costs paid or incurred during the taxable year to
clean up a polluted "brownfield" property to a satisfactory level,
as evidenced by a written certification of completion.
   (b) For purposes of this section:
   (1) "Brownfield property" means a property as defined in paragraph
(2) of subdivision (a) of Section 25395.20 of the Health and Safety
Code.
   (2) "Written certification of completion" means an evaluation by
the Department of Toxic Substances Control of the effectiveness of a
removal or remedial action conducted by a responsible party, to
reduce or eliminate actual or potential public health and
environmental threats posed by a hazardous substance release site if
the action itself is not the subject of oversight by the Department
of Toxic Substances Control.
   (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 succeeding years if necessary, until the credit
is exhausted.
  SEC. 3.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.