BILL NUMBER: AB 1029	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Blumenfield

                        FEBRUARY 27, 2009

   An act to add and repeal Sections 17053.91 and 23649.1 of the
Revenue and Taxation Code, relating to taxation, to take effect
immediately, tax levy.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1029, as introduced, Blumenfield. Manufacturers' investment
credit: qualified solar energy materials.
   The Personal Income Tax Law and the Bank and Corporation Tax Law
authorizes various credits against the taxes imposed by that law.
   This bill would allow a credit for taxable years beginning on or
after January 1, 2009, and before January 1, 2011, in an amount equal
to an unspecified percent of the amount paid or incurred during the
taxable year by a qualified taxpayer in connection with the
manufacture of qualified solar energy materials.
   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 17053.91 is added to the Revenue and Taxation
Code, to read:
   17053.91.  (a) For taxable years beginning on or after January 1,
2009, and before January 1, 2011, there shall be allowed as a credit
against the "net tax" (as defined in Section 17039) for the taxable
year an amount equal to ___ percent of the amount paid or incurred
during the taxable year by a taxpayer in connection with the
manufacture of qualified solar energy materials.
   (b) For purposes of this section:
   (1) "Manufacturing" means combining or processing components or
materials to increase their value for sale in the ordinary course of
business, but does not include construction, farming, power
generation, or processing natural resources.
   (2) "Qualified solar energy materials" means materials used in
solar energy systems that meet standards established by the
California Energy Commission and are approved for use in the
California Solar Initiative.
   (c) In the case where the credit otherwise allowed under this
section exceeds the "net tax" for the taxable year, that portion of
the credit that exceeds the "net tax" may be carried over to reduce
the net tax in the following taxable year, and the succeeding four
taxable years if necessary, until the credit is exhausted.
   (d) The Franchise Tax Board may prescribe rules and regulations to
carry out the purposes of this section, including any rules and
regulations necessary to prevent the avoidance of the effect of this
section through splitups, shell corporations, partnerships, tiered
ownership structures, sale-leaseback transactions, or otherwise.
   (e) This section shall remain in effect only until December 1,
2011, and as of that date is repealed.
  SEC. 2.  Section 23649.1 is added to the Revenue and Taxation Code,
to read:
   23649.1.  (a) For taxable years beginning on or after January 1,
2009, and before January 1, 2011, there shall be allowed as a credit
against the "tax" as defined in Section 23036 for the taxable year an
amount equal to ___ percent of the amount paid or incurred during
the taxable year by a taxpayer in connection with the manufacture of
qualified solar energy materials.
   (b) For purposes of this section:
   (1) "Manufacturing" means combining or processing components or
materials to increase their value for sale in the ordinary course of
business, but does not include construction, farming, power
generation, or processing natural resources.
   (2) "Qualified solar energy materials" means materials used in
solar energy systems that meet standards established by the
California Energy Commission and are approved for use in the
California Solar Initiative.
   (c) In the case where the credit otherwise allowed under this
section exceeds the "net tax" for the taxable year, that portion of
the credit that exceeds the "net tax" may be carried over to reduce
the net tax in the following taxable year, and the succeeding four
taxable years if necessary, until the credit is exhausted.
   (d) The Franchise Tax Board may prescribe rules and regulations to
carry out the purposes of this section, including any rules and
regulations necessary to prevent the avoidance of the effect of this
section through splitups, shell corporations, partnerships, tiered
ownership structures, sale-leaseback transactions, or otherwise.
   (e) This section shall remain in effect only until December 1,
2011, 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.