BILL NUMBER: AB 274	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 15, 2007

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 amended, Coto. Taxation: credit: brownfield cleanup.
   The Personal Income  Tax Law  and  the 
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  , as specified,  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,  located in California  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  , who operates a small business,  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  , located in California, 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.  
   (1) "Brownfield property" means either of the following: 

   (A) A property as defined in Section 44504.1 of the Health and
Safety Code.  
   (B) A property that is contaminated by petroleum. 
   (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. 
   (3) "Small business" has the same meaning as set forth in
subdivision (d) of Section 14837 of the Government Code. 
   (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  , who operates a small business,  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  , located in California,  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.  
   (1) "Brownfield property" means either of the following: 

   (A) A property as defined in Section 44504.1 of the Health and
Safety Code.  
   (B) A property that is contaminated by petroleum. 
   (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. 
   (3) "Small business" has the same meaning as set forth in
subdivision (d) of Section 14837 of the Government Code. 
   (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.