Bill Text: CA AB1710 | 2015-2016 | Regular Session | Amended
Bill Title: Vehicular air pollution: zero-emission and near-zero-emission vehicles.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Failed) 2016-11-30 - From committee without further action. [AB1710 Detail]
Download: California-2015-AB1710-Amended.html
BILL NUMBER: AB 1710 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 5, 2016
INTRODUCED BY Assembly Member Calderon
JANUARY 26, 2016
An act to add Chapter 8.8 (commencing with Section 44269)
to Part 5 of Division 26 of the Health and Safety Code,
Section 44258.6 to the Health and Safety Code, and to amend
Section 17072 of, to add Section 6012.4 to, and to add and repeal
Sections 17060.3 and 17206.3 of, the Revenue and Taxation
Code, relating to vehicular air pollution.
LEGISLATIVE COUNSEL'S DIGEST
AB 1710, as amended, Calderon. Vehicular air pollution:
advanced-technology light-duty zero-emission and
near-zero-emission vehicles.
Existing
(1) Existing law establishes the
Air Quality Improvement Program that is administered by the State Air
Resources Board for the purposes of funding projects related to,
among other things, reduction of criteria air pollutants and
improvement of air quality. Pursuant to the Air Quality Improvement
Program, the state board has established the Clean Vehicle Rebate
Project to promote the production and use of zero-emission
vehicles and the Hybrid and Zero-Emission Truck and Bus Voucher
Incentive Project to provide vouchers to help California fleets to
purchase hybrid and zero-emission trucks and buses.
vehicles.
The Charge Ahead California Initiative, administered by the state
board, includes goals of, among other things, placing in service at
least 1,000,000 zero-emission and near-zero-emission vehicles by
January 1, 2023, and increasing access for disadvantaged, low-income,
and moderate-income communities and consumers to zero-emission and
near-zero-emission vehicles.
This bill would require, on or before January 1, 2019, the state
board, in coordination with the State Energy Resources
Conservation and Development Commission and the Department of
Transportation, board to develop and implement a
comprehensive program comprised of a portfolio of incentives
to promote advanced-technology light-duty
zero-emission and near-zero-emission vehicle deployment in
the state to drastically increase the use of those vehicles and to
meet specified goals established by the Governor and the Legislature.
(2) The Sales and Use Tax Law imposes a tax on retailers measured
by the gross receipts from the sale of tangible personal property
sold at retail in this state, or on the storage, use, or other
consumption of tangible personal property purchased from a retailer
for the storage, use, or other consumption in this state measured by
sales price. That law defines the terms "gross receipts" and "sales
price."
This bill, on and after January 1, 2017, would exclude from "gross
receipts" and "sales price" that portion of the cost of a new or
used near-zero or zero-emission vehicle purchased by a low-income
purchaser, as defined, that does not exceed $40,000.
The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes
counties and cities to impose local sales and use taxes in conformity
with the Sales and Use Tax Law, and existing law authorizes
districts, as specified, to impose transactions and use taxes
generally in accordance with the Transactions and Use Tax Law, which
generally conforms to the Sales and Use Tax Law. Amendments to the
Sales and Use Tax Law are automatically incorporated into the local
tax laws.
This bill would specify that this exemption does not apply to
local sales and use taxes or transactions and use taxes.
(3) The Personal Income Tax Law allows various credits against the
taxes imposed by that law.
This bill would, for taxable years beginning on or after January
1, 2017, and before January 1, 2026, allow a credit under the
Personal Income Tax Law in an amount equal to $2,500 to a qualified
taxpayer, as defined, who purchased a near-zero or zero-emission
vehicle during the taxable year. This bill would state the intent of
the Legislature to enact legislation to provide that the credit
amount in excess of tax liability would be refundable in those years
in which an appropriation for that purpose is made by the
Legislature.
The Personal Income Tax Law, in modified conformity with federal
income tax laws, allows various deductions from gross income in
computing adjusted gross income under that law, including deductions
for payments to individual retirement accounts, alimony payments, and
interest on educational loans.
This bill, for taxable years beginning on or after January 1,
2017, and before January 1, 2026, would allow a deduction of $2,500
in computing adjusted gross income to a qualified taxpayer, as
defined, who purchased a near-zero or zero-emission vehicle during
the taxable year, as provided.
This bill would require a qualified taxpayer to make an
irrevocable election to either claim the above-described deduction or
credit for the taxable year.
(4) This bill would require the Franchise Tax Board to make an
annual report to the Legislature regarding the tax provisions allowed
by the bill.
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 44258.6 is added to the
Health and Safety Code , to read:
44258.6. (a) On or before January 1, 2019, the state board shall
develop and implement a comprehensive program to promote
zero-emission and near-zero-emission vehicle deployment in the state
to drastically increase the use of those vehicles and to meet the
goals established by the Governor and the Legislature, including, but
not limited to, the ZEV Action Plan by the Governor's Interagency
Working Group on Zero-Emission Vehicles and the Charge Ahead
California Initiative.
(b) (1) The program shall consist of a portfolio of incentives,
including, but not limited to, the following:
(A) An employer incentive program, including, but not limited to,
incentives targeted at companies located outside population centers
or companies whose employees commute from a 50-mile radius.
(B) An incentive program targeted at low-income individuals for
the purchase or leasing of zero-emission or near-zero-emission
vehicles.
(C) Onroad incentives.
(2) Incentives may include grants, loans, revolving loans, or
other appropriate measures.
(3) In implementing the program, the state board shall consult
with the State Energy Resources Conservation and Development
Commission to identify opportunities for coordination with investment
in zero-emission and near-zero-emission vehicle infrastructure
pursuant to Section 44272.
(c) Moneys in the Greenhouse Gas Reduction Fund, the Air Quality
Improvement Fund, or the Alternative and Renewable Fuel and Vehicle
Technology Fund shall be made available, upon appropriation by the
Legislature, for the program.
(d) The state board, in accordance with Section 9795 of the
Government Code, shall submit an annual report to the Legislature
regarding the efficacy of the program.
SEC. 2. Section 6012.4 is added to the
Revenue and Taxation Code , to read:
6012.4. (a) On or after January 1, 2017, for purposes of this
part, "gross receipts" and "sales price" do not include that portion
of the cost of a new or used near-zero or zero-emission vehicle
purchased by a low-income purchaser that does not exceed forty
thousand dollars ($40,000).
(b) For purposes of this section:
(1) "Low-income purchaser" means an individual or individuals
whose household income does not exceed 80% of the median income of
the county in which they reside as determined by the United States
Department of Housing and Urban Development.
(2) "Near-zero-emission vehicle" means a vehicle that utilizes
zero-emission technologies, enables technologies that provide a
pathway to zero-emissions operations, or incorporates other
technologies that significantly reduce criteria pollutants, toxic air
contaminants, and greenhouse gas emissions, as defined by the State
Air Resources Board in consultation with the State Energy Resources
Conservation and Development Commission consistent with meeting the
state's mid- and long-term air quality standards and climate goals.
(3) "Zero-emission vehicle" means a vehicle that produces no
emissions of criteria pollutants, toxic air contaminants, and
greenhouse gases when stationary or operating, as determined by the
State Air Resources Board.
(c) Notwithstanding any provision of the Bradley-Burns Uniform
Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200))
or the Transactions and Use Tax Law (Part 1.6 (commencing with
Section 7251)), the exemption established by this section shall not
apply with respect to any tax levied by a county, city, or district
pursuant to, or in accordance with, either of those laws.
SEC. 3. Section 17060.3 is added to the
Revenue and Taxation Code , to read:
17060.3. (a) For each taxable year beginning on or after January
1, 2017, and before January 1, 2026, there shall be allowed to a
qualified taxpayer a credit against the "net tax," as defined in
Section 17039, in an amount equal to two thousand five hundred
dollars ($2,500).
(b) For the purposes of this section:
(1) "Qualified taxpayer" means an individual or individuals who
meet the income eligibility requirements specified by the State Air
Resources Board pursuant to subparagraph (B) of paragraph (3) of
subdivision (c) of Section 44258.4 of the Health and Safety Code and
who purchased a near-zero or zero-emission vehicle during the taxable
year.
(2) "Near-zero-emission vehicle" means a vehicle that utilizes
zero-emission technologies, enables technologies that provide a
pathway to zero-emissions operations, or incorporates other
technologies that significantly reduce criteria pollutants, toxic air
contaminants, and greenhouse gas emissions, as defined by the State
Air Resources Board in consultation with the State Energy Resources
Conservation and Development Commission consistent with meeting the
state's mid- and long-term air quality standards and climate goals.
(3) "Zero-emission vehicle" means a vehicle that produces no
emissions of criteria pollutants, toxic air contaminants, and
greenhouse gases when stationary or operating, as determined by the
State Air Resources Board.
(c) (1) Subject to paragraph (2), 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
succeeding six years if necessary, until the credit is exhausted.
(2) It is the intent of the Legislature to enact legislation to
provide that in the case where the credit allowed by this section
exceeds the "net tax," the excess, in lieu of the carry forward
pursuant to paragraph (1), may be refunded to taxpayers, upon
appropriation by the Legislature.
(d) A qualified taxpayer shall make an irrevocable election to
claim the credit allowed by this section in lieu of the deduction
allowed by Section 17206.3.
(e) This section shall remain in effect only until December 1,
2026, and as of that date is repealed.
SEC. 4. Section 17072 of the Revenue
and Taxation Code is amended to read:
17072. (a) Section 62 of the Internal Revenue Code, relating to
adjusted gross income defined, shall apply, except as otherwise
provided.
(b) Section 62(a)(2)(D) of the Internal Revenue Code, relating to
certain expenses of elementary and secondary school teachers, shall
not apply.
(c) Section 62(a)(21) of the Internal Revenue Code, relating to
attorneys fees relating to awards to whistleblowers, shall not apply.
(d) For taxable years beginning on or after January 1, 2017, and
before January 1, 2026, Section 62(a) of the Internal Revenue Code is
modified to provide that the deduction under Section 17206.3 shall
be allowed in determining adjusted gross income.
SEC. 5. Section 17206.3 is added to the
Revenue and Taxation Code , to read:
17206.3. (a) For taxable years beginning on or after January 1,
2017, and before January 1, 2026, there shall be allowed as a
deduction of two thousand five hundred dollars ($2,500) to a
qualified taxpayer who, during the taxable year, purchased a
near-zero or zero-emission vehicle.
(b) For the purposes of this section:
(1) "Qualified taxpayer" means an individual or individuals who
meet the income eligibility requirements specified by the State Air
Resources Board pursuant to subparagraph (B) of paragraph (3) of
subdivision (c) of Section 44258.4 of the Health and Safety Code.
(2) "Near-zero-emission vehicle" means a vehicle that utilizes
zero-emission technologies, enables technologies that provide a
pathway to zero-emissions operations, or incorporates other
technologies that significantly reduce criteria pollutants, toxic air
contaminants, and greenhouse gas emissions, as defined by the State
Air Resources Board in consultation with the State Energy Resources
Conservation and Development Commission consistent with meeting the
state's mid- and long-term air quality standards and climate goals.
(3) "Zero-emission vehicle" means a vehicle that produces no
emissions of criteria pollutants, toxic air contaminants, and
greenhouse gases when stationary or operating, as determined by the
State Air Resources Board.
(c) A qualified taxpayer shall make an irrevocable election to
claim the deduction allowed by this section in lieu of the credit
allowed by Section 17060.3.
(d) This section shall remain in effect only until December 1,
2026, and as of that date is repealed.
SEC. 6 . (a) In accordance with Section
41 of the Revenue and Taxation Code, on or before January 1, 2018,
and each January 1 thereafter until January 1, 2027, the Franchise
Tax Board, in consultation with the State Board of Equalization,
shall annually prepare a written report to the Legislature regarding
the efficacy of Sections 6012.4, 17060.3, and 17206.3 of the Revenue
and Taxation Code, as added by Sections 2, 3, and 5 of this act.
(b) A report submitted pursuant to subdivision (a) shall be
submitted in compliance with Section 9795 of the Government Code.
SECTION 1. The Legislature finds and declares
all of the following:
(a) Advanced-technology light-duty vehicles are currently more
expensive than equivalent conventional models. Despite a federal tax
credit and the state's vehicle incentive, the higher initial costs
for zero-emission vehicles remain a barrier for many of the state's
consumers.
(b) Some advanced-technology light-duty vehicles require new
infrastructure to enable convenient and cost-effective fueling, which
can be a barrier to vehicle sales. This can include fueling
infrastructure in homes, workplaces, and public spaces.
(c) Market penetration is slowed due to a lack of information for
consumers on the benefits and availability of vehicles and the
incentives available when they are ready to purchase or lease a
vehicle.
(d) While the state has taken a leadership role to develop
programs to assist the deployment of plug-in electric vehicles and
fuel-cell electric vehicles in disadvantaged communities, any
long-term plan designed by the state needs to address new and used
car sales in disadvantaged communities.
SEC. 2. Chapter 8.8 (commencing with Section
44269) is added to Part 5 of Division 26 of the Health and Safety
Code, to read:
CHAPTER 8.8. ADVANCED-TECHNOLOGY LIGHT-DUTY VEHICLES
44269. (a) On or before January 1, 2019, the state board, in
coordination with the State Energy Resources Conservation and
Development Commission and the Department of Transportation, shall
develop and implement a comprehensive program to promote
advanced-technology light-duty vehicle deployment in the state to
drastically increase the use of those vehicles and to meet the goals
established by the Governor and the Legislature, including, but not
limited to, the ZEV Action Plan by the Governor's Interagency Working
Group on Zero-Emission Vehicles and the Charge Ahead California
Initiative (Chapter 8.5 (commencing with Section 44258)).
(b) The program established pursuant to this chapter shall include
all of the following:
(1) Long-term market signals.
(2) Sustainable funding mechanisms.
(3) A portfolio of approaches.
(4) Support for low-income deployment in disadvantaged
communities, as identified in Section 39711.
(c) The program established pursuant to this chapter may include,
but need not be limited to, any of the following:
(1) On-road incentives.
(2) Point-of-sale incentives.
(3) Consumer tax incentives.
(4) In-home and parking infrastructure incentives.
