Bill Text: CA AB2014 | 2009-2010 | Regular Session | Amended
Bill Title: Income taxes: credits: energy efficient homes.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2010-05-28 - In committee: Set, first hearing. Referred to APPR. suspense file. In committee: Set, first hearing. Held under submission. [AB2014 Detail]
Download: California-2009-AB2014-Amended.html
BILL NUMBER: AB 2014 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY MAY 18, 2010
AMENDED IN ASSEMBLY APRIL 8, 2010
INTRODUCED BY Assembly Member Torrico
FEBRUARY 17, 2010
An act to add and repeal Section 17059.2 to
of the Revenue and Taxation Code, relating to
taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 2014, as amended, Torrico. Income taxes: credits: energy
efficient homes.
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 January
1, 2010, and before January 1, 2014, allow a credit in a
specified amount for bringing a qualified principal residence, as
defined, into compliance with the recommendations for energy
efficiency made by an energy audit , that complies with the
regulations in Phase II of the California Home Energy Rating System
Program, of the qualified principal residence.
This bill would make legislative findings and declarations as to
the necessity of a special statute.
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. The Legislature finds and declares all of the
following:
(a) The Legislature recently passed Assembly Bill 32 of the
2009-10 Regular Session, landmark environmental legislation that
requires California to reduce its greenhouse gas emissions by
approximately 30 percent by the year 2020.
(a) The Legislature recently passed the California Global Warming
Solutions Act of 2006 (Division 25.5 (commencing with Section 38500)
of the Health and Safety Code), landmark environmental legislation
that requires California to reduce greenhouse gas emissions to 1990
levels by 2020.
(b) Existing residential buildings are a significant contributor
to greenhouse gas emissions, and the Legislature recognizes that
energy savings and greenhouse gas emission reductions are needed in
the existing residential building stock.
(c) Energy audits and improvements to existing building stock will
greatly reduce greenhouse gas emissions, as well as create much
needed jobs in the energy efficiency, green construction, and home
improvement fields.
SEC. 2. Section 17059.2 is added to the Revenue and Taxation Code,
to read:
17059.2. (a) (1) For each taxable year beginning on or after
January 1, 2010, and before January 1, 2014, there shall
be allowed as a credit against the "net tax," as defined by Section
17039, an amount as specified in paragraph (2) for a
qualified costs paid or incurred by a qualified
taxpayer who commissions an energy audit , that complies with
the regulations described in paragraph (3), of his
or her qualified principal residence and makes the recommended
improvements to improve the energy efficiency of his or her qualified
principal residence.
(2) The credit allowed by paragraph (1) shall be the lesser of 50
percent of the qualified costs that are paid or incurred by a
taxpayer for the taxable year or one thousand five hundred dollars
($1,500).
(2) The credit under this section shall not exceed one thousand
five hundred dollars ($1,500) per qualified taxpayer for each taxable
year for which the credit is allowed.
(3) The energy audit shall comply with the regulations in Phase II
of the California Home Energy Rating System Program established by
the State Energy Resources Conservation and Development Commission,
pursuant to Chapter 10.8 (commencing with Section 25942) of Division
15 of the Public Resources Code.
(b) (1) (A) The credit under this section shall be allowed for a
taxable year only if claimed on a timely filed original return for
that taxable year received by the Franchise Tax Board on or before
the cut-off date established by the Franchise Tax Board for the
taxable year.
(B) For purposes of this paragraph, the cut-off date for a taxable
year shall be the last day of the calendar quarter within which the
Franchise Tax Board estimates it will have received timely filed
original returns for the taxable year claiming credits under this
section that cumulatively total two hundred fifty thousand dollars
($250,000) for that taxable year.
(2) The date a return is received shall be determined by the
Franchise Tax Board.
(3) (A) The determinations of the Franchise Tax Board with respect
to the cut-off date, the date the return is received, and whether a
return has been timely filed for purposes of this subdivision may not
be reviewed in any administrative or judicial proceeding.
(B) Any disallowance of a credit claimed due to a determination
under this subdivision, including the application of the limitation
specified in paragraph (1), shall be treated as a mathematical error
appearing on the return. Any amount of tax resulting from such
disallowance may be assessed by the Franchise Tax Board in the same
manner as provided by Section 19051.
(b)
(c) For purposes of this section:
(1) "Qualified costs" means costs paid or incurred by a
taxpayer qualified taxpayer during the taxable year in
which the credit is claimed for the repair, rehabilitation, or
improvement of a qualified principal residence made toward
bringing the qualified principal residence in compliance with the
recommendations of recommended by the energy
audit , even if the repair, rehabilitation, or improvement is
not completed during the taxable year in which the credit
is claimed .
(2) "Qualified principal residence" means a single-family
residence, whether detached or attached, that is the principal
residence of the taxpayer.
(2) "Qualified principal residence" means a principal residence as
defined in Section 121 of the Internal Revenue Code that is located
in any of the counties specified in paragraph (3).
(3) "Qualified taxpayer" means a taxpayer who is a resident of any
of the following counties:
(A) County of Alameda.
(B) County of Contra Costa.
(C) County of San Mateo.
(D) County of Santa Clara.
(c)
(d) (1) No credit shall be
allowed by this section unless the qualified taxpayer
provides satisfactory substantiation to, and in the form and manner
requested by, the Franchise Tax Board, that the energy audit was
conducted and the recommended repairs, rehabilitations, and
improvements were made to the qualified principal residence
within three years of the completion of the audit .
(2) The energy audit required by this section shall be conducted
by a California Home Energy Rating System professional certified by
the State Energy Resources Conservation and Development Commission.
(d)
(e) 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
succeeding eight years if necessary, until the credit is
exhausted.
(f) If two or more qualified taxpayers are not married and jointly
own a qualified principal residence, each taxpayer shall be allowed
an amount equal to 50 percent of the credit specified in subdivision
(a).
(g) The Franchise Tax Board may prescribe rules, guidelines, or
procedures necessary or appropriate to carry out the purposes of this
section. Chapter 3.5 (commencing with Section 11340) of Part 1 of
Division 3 of Title 2 of the Government Code does not apply to any
rule, guideline, or procedure prescribed by the Franchise Tax Board
pursuant to this section.
(h) This section shall remain in effect only until December 1,
2014, and as of that date is repealed.
SEC. 3. The Legislature finds and declares that a
special law is necessary and that a general law cannot be made
applicable within the meaning of Section 16 of Article IV of the
California Constitution because of the need to establish a pilot
program in the Counties of Alameda, Contra Costa, San Mateo, and
Santa Clara to evaluate the effectiveness of the credit allowed by
Section 1 of this act in order to promote energy efficient homes.
SEC. 3. SEC. 4. This act provides
for a tax levy within the meaning of Article IV of the Constitution
and shall go into immediate effect.
