Bill Text: CA SB936 | 2009-2010 | Regular Session | Amended

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Bill Title: Taxation: grants for specified energy property.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2010-03-11 - Re-referred to Com. on REV. & TAX. [SB936 Detail]

Download: California-2009-SB936-Amended.html

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BILL NUMBER: SB 936	AMENDED
	BILL TEXT

	AMENDED IN SENATE  MARCH 8, 2010

INTRODUCED BY   Senator  Walters   Strickland


                        FEBRUARY 2, 2010

    An act to amend Section 17048 of the Revenue and Taxation
Code, relating to taxation.   An act to add Sections
17131.3 and 24303 to the Revenue and Taxation Code, relating to
taxation, to take effect immediately, tax levy. 


	LEGISLATIVE COUNSEL'S DIGEST


   SB 936, as amended,  Walters   Strickland
 .  Income taxes: tax tables.  Taxation:
grants for specified energy property.  
   The Personal Income Tax Law and the Corporation Tax Law provide
various exclusions from gross income, which is subject to tax imposed
by those laws.  
   This bill would provide under those laws that gross income does
not include any grant to a taxpayer who places in service specified
energy property in accordance with the federal American Recovery and
Reinvestment Tax Act of 2009, but would require that the amount of
any grant be used to adjust the basis of the property in accordance
with specified requirements.  
   This bill would make legislative findings with regard to the
public purpose of the bill  
   This bill would take effect immediately as a tax levy. 

   The Personal Income Tax Law imposes specified taxes based upon
gross income, and, among other things, provides for the computation
of taxes in accordance with tax tables prescribed by the Franchise
Tax Board.  
   This bill would make technical, nonsubstantive changes to those
provisions. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
  yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 17131.3 is added to the 
 Revenue and Taxation Code   , to read:  
   17131.3.  Any grant made in any taxable year by the Secretary of
the Treasury under Section 1603 of the American Recovery and
Reinvestment Tax Act of 2009 (Public Law 111-5) to a tax payer that
places in service specified energy property shall not be includable
in the gross income or the alternative minimum taxable income of the
taxpayer, but shall be taken into account in determining the basis of
the property to which that grant relates, except that the basis of
that property shall be reduced using rules prescribed under Section
50(c) of the Internal Revenue Code in the same manner as a credit
allowed under Section 50(a) of the Internal Revenue Code, and
increased by any recapture provided by the Secretary of the Treasury
under Section 1603(f) of the American Recovery and Reinvestment Act
of 2009 (Public Law 111-5). 
   SEC. 2.    Section 24303 is added to the  
Revenue and Taxation Code   , to read:  
   24303.  Any grant made in any taxable year by the Secretary of the
Treasury under Section 1603 of the American Recovery and
Reinvestment Tax Act of 2009 (Public Law 111-5) to a tax payer that
places in service specified energy property shall not be includable
in the gross income or the alternative minimum taxable income of the
taxpayer, but shall be taken into account in determining the basis of
the property to which that grant relates, except that the basis of
that property shall be reduced using rules prescribed under Section
50(c) of the Internal Revenue Code in the same manner as a credit
allowed under Section 50(a) of the Internal Revenue Code, and
increased by any recapture provided by the Secretary of the Treasury
under Section 1603(f) of the American Recovery and Reinvestment Act
of 2009 (Public Law 111-5). 
   SEC. 3.    The Legislature finds and declares that
the application of Sections 17131.3 and 24303 without regard to
taxable year serves a public purpose by ensuring the fair and
consistent application of California law to recipients of grants made
by the Secretary of the Treasury under Section 1603 of the American
Recovery and Reinvestment Tax Act of 2009 (Public Law 111-5). 
   SEC. 4.    This act provides for a tax levy within
the meaning of Article IV of the Constitution and shall go into
immediate effect.  
  SECTION 1.    Section 17048 of the Revenue and
Taxation Code is amended to read:
   17048.  (a)  In lieu of the tax imposed under Section 17041,
individuals with taxable income of such amounts as prescribed by the
Franchise Tax Board, shall compute their taxes under tax tables
prescribed by the Franchise Tax Board. The tax tables shall reflect
the tax imposed under Section 17041 in income progressions of not
less than one hundred dollars ($100), taking into account the marital
or other status of the individual. For purposes of this part, the
tax imposed by this section shall be treated as tax imposed by
Section 17041.
   (b)  Subdivision (a) shall not apply to any of the following:
   (1)  An individual to whom subdivision (b) of Section 17504
(relating to the tax on lump-sum distributions) applies for the
taxable year.
   (2)  An individual making a return under Section 443(a)(1) of the
Internal Revenue Code for a period of less than 12 months on account
of a change in annual accounting period.
   (3)  An estate or trust.