BILL NUMBER: SB 357	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Dutton

                        FEBRUARY 15, 2011

   An act to add Section 11343.10 to the Government Code, and to add
Sections 17053.91 and 23649.1 to the Revenue and Taxation Code,
relating to taxation.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 357, as introduced, Dutton. Personal and corporate income tax:
tax credit: depreciable property.
   The Personal Income Tax Law and the Corporation Tax Law authorize
various deductions in computing the income that is subject to the
taxes imposed by those laws, and authorizes credits against the taxes
imposed by those laws. Existing law authorizes a taxpayer to deduct
from income any remaining depreciation amount whenever depreciable
property becomes obsolete, including as the result of regulatory or
legislative action.
   This bill would allow a refundable credit in the amount equal to
the depreciation deduction a taxpayer would otherwise be entitled
should a state agency regulation render depreciable property
obsolete. This bill would condition payment of any refundable portion
of the credit upon a future appropriation by the Legislature, and
prohibit the state agency regulation regarding depreciable property
from taking effect until such appropriation is made, as provided.
   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 11343.10 is added to the Government Code, to
read:
   11343.10.  (a) A state agency shall not promulgate any new
regulation that would render tangible property obsolete unless an
appropriation has been made for a tax credit pursuant to Sections
17053.91 and 23649.1 of the Revenue and Taxation Code.
   (b) For purposes of this section, "tangible property" means
property described in Section 167(a) of the Internal Revenue Code.
  SEC. 2.  Section 17053.91 is added to the Revenue and Taxation
Code, to read:
   17053.91.  (a) There shall be allowed as a credit against the "net
tax," as defined in Section 17039, an amount equal to the
depreciation deduction for the taxable year to which a taxpayer would
have otherwise been entitled under this part had a state agency not
promulgated a regulation, described in Section 11343.10 of the
Government Code, that rendered the tangible property obsolete.
   (b) For purposes of this section, "tangible property" means
property described in Section 167(a) of the Internal Revenue Code.
   (c) In the case of a taxpayer whose credit provided under this
section exceeds the taxpayer's tax liability computed under this
part, the excess shall be credited against other amounts due, if any,
from the taxpayer and the balance, if any, shall, upon appropriation
by the Legislature, be refunded to the taxpayer.
  SEC. 3.  Section 23649.1 is added to the Revenue and Taxation Code,
to read:
   23649.1.  (a) There shall be allowed as a credit against the "net
tax," as defined in Section 23036, an amount equal to the
depreciation deduction for the taxable year to which a taxpayer would
have otherwise been entitled under this part had a state agency not
promulgated a regulation, described in Section 11343.10 of the
Government Code, that rendered the tangible property obsolete.
   (b) For purposes of this section, "tangible property" means
property described in Section 167(a) of the Internal Revenue Code.
   (c) In the case of a taxpayer whose credit provided under this
section exceeds the taxpayer's tax liability computed under this
part, the excess shall be credited against other amounts due, if any,
from the taxpayer and the balance, if any, shall, upon appropriation
by the Legislature, be refunded to the taxpayer.