BILL NUMBER: AB 205	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  FEBRUARY 16, 2011

INTRODUCED BY   Assembly Member Hagman

                        JANUARY 27, 2011

   An act to add Section 17053.44 to the Revenue and Taxation Code,
relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 205, as amended, Hagman. Income taxes:  New Car Buyer
Incentive Act:  credit: vehicle registration.
   The Personal Income Tax Law authorizes various credits against the
taxes imposed by that law.
   This bill would, for taxable years beginning on or after 
Janaury   January  1,  2011  
2010  , authorize a credit under the Personal Income Tax Law for
qualified costs, as defined, paid by a taxpayer for the registration
of a qualified vehicle, as provided. 
   The bill would make a legislative finding and declaration
regarding the public purpose served by the bill. 
   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.    This act shall be known, and may be
cited, as the New Car Buyer Incentive Act. 
   SECTION 1.   SEC. 2.   Section 17053.44
is added to the Revenue and Taxation Code, to read:
   17053.44.  (a) For each taxable year beginning on or after January
1,  2011   2010  , there shall be allowed
as a credit against the "net tax," as defined in Section 17039, an
amount equal to the qualified costs paid by a taxpayer for the
registration of a qualified vehicle.
   (b) For purposes of this section:
   (1) "Qualifed costs" means the registration fees for a qualified
vehicle pursuant to Article 2 (commencing with Section 9250) of
Chapter 6 of Division 3 of the Vehicle Code, paid by a qualified
taxpayer during the taxable year.
   (2) "Qualified vehicle" means a vehicle for which a taxpayer has
paid qualified costs previous to the purchase by the taxpayer of a
new vehicle for which the taxpayer has also paid registration fees
pursuant to Article 2 (commencing with Section 9250) of Chapter 6 of
Division 3 of the Vehicle Code during the same calendar year  and
that is either sold or traded in to purchase the new vehicle  .

   SEC. 3.    The Legislature finds and declares that
the credit allowed to taxpayers by this act with respect to the 2010
taxable year serves a public purpose of encouraging the purchase of
more energy efficient and economical vehicles to benefit the
environment of all Californians and does not constitute a gift of
public funds within the meaning of Section 6 of Article XVI of the
California Constitution. 
   SEC. 2.   SEC. 4.   This act provides
for a tax levy within the meaning of Article IV of the Constitution
and shall go into immediate effect.
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