BILL NUMBER: AB 2528	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Knight

                        FEBRUARY 19, 2010

   An act to add Sections 17071.5 and 24303 to the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2528, as introduced, Knight. Income and corporation taxes:
gross income: exclusion: cash for clunkers.
   The Personal Income Tax Law and the Corporation Tax Law defines
gross income as all income from whatever source derived, unless
specifically excluded.
   This bill would, under both laws, exclude from the computation of
gross income any voucher issued or specified payment made pursuant to
the federal Consumer Assistance to Recycle and Save Act of 2009
received as a result of a purchase of a vehicle described in that
act.
   This bill makes a legislative finding and declaration that it
serves a public, 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:

  SECTION 1.  Section 17071.5 is added to the Revenue and Taxation
Code, to read:
   17071.5.  A voucher issued under the federal Consumer Assistance
to Recycle and Save Act of 2009 (Public Law 111-32 as amended by
Public Law 111-47) or any payment made pursuant to Section 1302(a)(3)
of that act shall not be considered as gross income of the purchaser
of a vehicle for purposes of this part.
  SEC. 2.  Section 24303 is added to the Revenue and Taxation Code,
to read:
   24303.  A voucher issued under the federal Consumer Assistance to
Recycle and Save Act of 2009 (Public Law 111-32 as amended by Public
Law 111-47) or any payment made pursuant to Section 1302(a)(3) of
that act shall not be considered as gross income of the purchaser of
a vehicle for purposes of this part.
  SEC. 3.  The Legislature finds and declares that this act is
necessary for the public purpose of providing for the equitable
treatment of taxpayers and in furtherance of the purposes the federal
Consumers Assistance to Recycle and Save Act of 2009.
  SEC. 4.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.