BILL NUMBER: AB 2665	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 26, 2010

INTRODUCED BY   Assembly Member Audra Strickland

                        FEBRUARY 19, 2010

   An act to add and repeal Sections 17053.88 and 23688 of the
Revenue and Taxation Code, relating to taxation, to take effect
immediately, tax levy.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 2665, as amended, Audra Strickland. Income tax credits:
emergency standby generators.
   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 each
taxable year beginning on or after January 1, 2011, and before
January 1, 2016, in an amount equal to 5% of the amount paid or
incurred during the taxable year for the purchase and installation of
an emergency standby generator, as defined, at a service station, as
defined, located in this state.
   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.  It is the intent of this act to provide an incentive
for a taxpayer that operates a service station to purchase and
install an emergency standby generator at a service station located
in this state in order for the service station to be able to continue
to maintain electrical power to provide services to the public
during power outages.
  SEC. 2.  Section 17053.88 is added to the Revenue and Taxation
Code, to read:
   17053.88.  (a) For each taxable year beginning on or after January
1, 2011, and before January 1, 2016, there shall be allowed as a
credit against the "net tax," as defined in Section 17039, an amount
equal to 5 percent of the amount paid or incurred during the taxable
year for the purchase and installation of an emergency standby
generator at a service station located in this state.
   (b) For purposes of this section:
   (1) "Emergency standby generator" means an electrical generator
that is rated by the manufacturer to generate at least 30 kilowatts
of electricity and whose sole function is to automatically provide
electric power when electric power from a utility service is
interrupted.
   (2) "Service station" means an establishment that offers for sale
or sells to the public, gasoline or other fuel to power motor
vehicles.
   (c) If an emergency standby generator for which a credit is
allowed pursuant to this section is thereafter sold  or
  , returned to the vendor, or otherwise  removed
from service by the taxpayer within one year from the date the
emergency standby generator was placed in service, the amount of
credit allowed by this section for the purchase and installation of
that emergency standby generator shall be recaptured by adding that
credit amount to the net tax of the taxpayer for the taxable year in
which the emergency standby generator is sold or removed.
   (d) 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.
   (e) This section shall remain in effect only until December 1,
2016, and as of that date is repealed.
  SEC. 3.  Section 23688 is added to the Revenue and Taxation Code,
to read:
   23688.  (a) For each taxable year beginning on or after January 1,
2011, and before January 1, 2016, there shall be allowed as a credit
against the "tax," as defined in Section 23036, an amount equal to 5
percent of the amount paid or incurred during the taxable year for
the purchase and installation of an emergency standby generator at a
service station located in this state.
   (b) For purposes of this section:
   (1) "Emergency standby generator" means an electrical generator
that is rated by the manufacturer to generate at least 30 kilowatts
of electricity and whose sole function is to automatically provide
electric power when electric power from a utility service is
interrupted.
   (2) "Service station" means an establishment that offers for sale
or sells to the public, gasoline or other fuel to power motor
vehicles.
   (c) If an emergency standby generator for which a credit is
allowed pursuant to this section is thereafter sold  or
  , returned to the vendor, or otherwise  removed
from service by the taxpayer within one year from the date the
emergency standby generator was placed in service, the amount of
credit allowed by this section for the purchase and installation of
that emergency standby generator shall be recaptured by adding that
credit amount to the tax of the taxpayer for the taxable year in
which the emergency standby generator is sold or removed.
   (d) 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.
   (e) This section shall remain in effect only until December 1,
2016, and as of that date is repealed.
  SEC. 4.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.