BILL NUMBER: AB 2665	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MAY 12, 2010
	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, if, in any
calendar year, the State Air Resources Board or the State Energy
Resources Conservation and Development Commission establishes a
certification standard for energy efficient or low emission emergency
standby generators, limit this credit to emergency standby
generators that satisfy that certification standard, as specified.
This bill   would require the State Air Resources Board or
the State Energy Resources Conservation and Development Commission to
notify the Franchise Tax Board of the establishment of a
certification standard, as provided, and would require the Franchise
Tax Board to post, on its Internet Web site, a notice to taxpayers,
as provided. 
   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  independently owned and opera
  ted  establishment that offers for sale or sells to
the public, gasoline or other fuel to power motor vehicles. 
   (c) The depreciable basis of any emergency standby generator shall
be reduced by the amount of any credit allowable under this section.
 
   (d) (1) If, in any calendar year, the State Air Resources Board or
the State Energy Resources Conservation and Development Commission
establishes a certification standard for energy efficient or low
emission emergency standby generators, the credit allowed by this
section shall be limited, for taxable years beginning on and after
January 1 immediately following the calendar year in which the
certification standard is established, to emergency standby
generators that satisfy that certification standard.  
   (2) The State Air Resources Board or the State Energy Resources
Conservation and Development Commission shall notify the Franchise
Tax Board of the establishment of a certification standard as
specified in paragraph (1), within 10 working days of establishing
that standard.  
   (3) The Franchise Tax Board shall post, on its Internet Web site,
a notice to taxpayers that a certification standard for energy
efficient or low emission emergency standby generators has been
established, and that the credit allowed by this section shall be
limited to emergency standby generators that satisfy that
certification standard. 
   (c) 
    (e)  If an emergency standby generator for which a
credit is allowed pursuant to this section is thereafter sold,
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) 
    (f)  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  the seven 
succeeding years if necessary, until the credit is exhausted.

   (e) 
    (g)  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  independently owned and
operated  establishment that offers for sale or sells to the
public, gasoline or other fuel to power motor vehicles. 
   (c) The depreciable basis of any emergency standby generator shall
be reduced by the amount of any credit allowable under this section.
 
   (d) (1) If, in any calendar year, the State Air Resources Board or
the State Energy Resources Conservation and Development Commission
establishes a certification standard for energy efficient or low
emission emergency standby generators, the credit allowed by this
section shall be limited, for taxable years beginning on and after
January 1 immediately following the calendar year in which the
certification standard is established, to emergency standby
generators that satisfy that certification standard.  
   (2) The State Air Resources Board or the State Energy Resources
Conservation and Development Commission shall notify the Franchise
Tax Board of the establishment of a certification standard as
specified in paragraph (1), within 10 working days of establishing
that standard.  
   (3) The Franchise Tax Board shall post, on its Internet Web site,
a notice to taxpayers that a certification standard for energy
efficient or low emission emergency standby generators has been
established, and that the credit allowed by this section shall be
limited to emergency standby generators that satisfy that
certification standard.  
   (c) 
    (e)  If an emergency standby generator for which a
credit is allowed pursuant to this section is thereafter sold,
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) 
    (f)  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  the seven  succeeding
years if necessary, until the credit is exhausted. 
   (e) 
    (g)  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.