BILL NUMBER: SB 464 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Strickland
FEBRUARY 26, 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
SB 464, as introduced, Strickland. Income and corporation taxes:
credits: diesel particulate matter reduction.
The Personal Income Tax Law and the Bank and Corporation Tax Law
authorize various credits against the taxes imposed by those laws.
This bill would allow a credit for taxable years beginning on or
after January 1, 2009, and before January 1, 2019, in an amount equal
to 5% of the amount paid or incurred for qualified property, as
defined, not to exceed $10,000, that is used to meet diesel
particulate matter reduction requirements.
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) (1) For each taxable year beginning on or after
January 1, 2009, and before January 1, 2019, there shall be allowed
as a credit against the "net tax," as defined in Section 17039, for
the taxable year an amount equal to 5 percent, subject to paragraph
(2), of the amount paid or incurred during the taxable year by a
qualified taxpayer in connection with the purchase of qualified
property.
(2) The credit allowed by paragraph (1) shall not exceed ten
thousand dollars ($10,000).
(b) For purposes of this section:
(1) "Diesel particulate matter" means the particles found in the
exhaust of diesel-fueled compression ignition engines.
(2) "Fleet" means all off-road vehicles and engines owned or
possessed by a qualified taxpayer that are operated within California
and are subject to the diesel particulate matter reduction
requirements established by the State Air Resources Board under
Article 4.8 (commencing with Section 2449) of Chapter 9 of Title 13
of the California Code of Regulations.
(3) "Qualified property" means tangible personal property used by
the qualified taxpayer to meet the diesel particulate matter
reduction requirements established by the State Air Resources Board
under Article 4.8 (commencing with Section 2449) of Chapter 9 of
Title 13 of the California Code of Regulations.
(4) "Qualified taxpayer" means a taxpayer who owns vehicles in a
fleet, or who has possession of vehicles in a fleet that are owned by
a rental or leasing company and that are leased by the same taxpayer
for a period of one year or more, pursuant to a written lease
agreement. "Qualified taxpayer" shall not include a taxpayer who
rents or leases vehicles for a period of less than one year.
(c) No credit shall be allowed pursuant to this section unless the
qualified taxpayer does all of the following:
(1) Obtains and retains the letter from the State Air Resources
Board certifying that the qualified property purchased by the
qualified taxpayer assists in meeting the diesel particulate matter
reduction requirements established by the State Air Resources Board
under Article 4.8 (commencing with Section 2449) of Chapter 9 of
Title 13 of the California Code of Regulations.
(2) Provides the Franchise Tax Board with the State Air Resources
Board certification described in paragraph (1), at the Franchise Tax
Board's request.
(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 for succeeding taxable years if
necessary, until the credit is exhausted.
(e) This section shall remain in effect only until January 1,
2019, 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) (1) For each taxable year beginning on or after
January 1, 2009, and before January 1, 2019, there shall be allowed
as a credit against the "tax," as defined in Section 23036, for the
taxable year an amount equal to 5 percent, subject to paragraph (2),
of the amount paid or incurred during the taxable year by a qualified
taxpayer in connection with the purchase of qualified property.
(2) The credit allowed by paragraph (1) shall not exceed ten
thousand dollars ($10,000).
(b) For purposes of this section:
(1) "Diesel particulate matter" means the particles found in the
exhaust of diesel-fueled compression ignition engines.
(2) "Fleet" means all off-road vehicles and engines owned or
possessed by a qualified taxpayer that are operated within California
and are subject to the diesel particulate matter reduction
requirements established by the State Air Resources Board under
Article 4.8 (commencing with Section 2449) of Chapter 9 of Title 13
of the California Code of Regulations.
(3) "Qualified property" means tangible personal property used by
the qualified taxpayer to meet the diesel particulate matter
reduction requirements established by the State Air Resources Board
under Article 4.8 (commencing with Section 2449) of Chapter 9 of
Title 13 of the California Code of Regulations.
(4) "Qualified taxpayer" means a taxpayer who owns vehicles in a
fleet, or who has possession of vehicles in a fleet that are owned by
a rental or leasing company and that are leased by the same taxpayer
for a period of one year or more, pursuant to a written lease
agreement. "Qualified taxpayer" shall not include a taxpayer who
rents or leases vehicles for a period of less than one year.
(c) No credit shall be allowed pursuant to this section unless the
qualified taxpayer does all of the following:
(1) Obtains and retains the letter from the State Air Resources
Board certifying that the qualified property purchased by the
qualified taxpayer assists in meeting the diesel particulate matter
reduction requirements established by the State Air Resources Board
under Article 4.8 (commencing with Section 2449) of Chapter 9 of
Title 13 of the California Code of Regulations.
(2) Provides the Franchise Tax Board with the State Air Resources
Board certification described in paragraph (1), at the Franchise Tax
Board's request.
(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 for succeeding taxable years if necessary, until
the credit is exhausted.
(e) This section shall remain in effect only until January 1,
2019, 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.