BILL NUMBER: AB 1339	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Gorell

                        FEBRUARY 18, 2011

   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 1339, as introduced, Gorell. 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, 2012, and before
January 1, 2017, in an amount equal to 50% 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, 2012, and before January 1, 2017, there shall be allowed as a
credit against the "net tax," as defined in Section 17039, an amount
equal to 50 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.
   (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.
   (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.
   (g) This section shall remain in effect only until December 1,
2017, 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,
2012, and before January 1, 2017, there shall be allowed as a credit
against the "tax," as defined in Section 23036, an amount equal to
50 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.
   (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.
   (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.
   (g) This section shall remain in effect only until December 1,
2017, 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.