Bill Text: CA AB1705 | 2009-2010 | Regular Session | Amended

California Assembly Bill 1705 (Prior Session Legislation)

Bill Title: Income taxation: exclusion: grants for specified energy

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2010-05-10 - In committee: Set, second hearing. Held under submission. [AB1705 Detail]

Download: California-2009-AB1705-Amended.html

BILL NUMBER: AB 1705	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 11, 2010
	AMENDED IN ASSEMBLY  MARCH 8, 2010

INTRODUCED BY   Assembly Member V. Manuel Perez
   (Coauthor: Assembly Member Skinner)

                        FEBRUARY 1, 2010

   An act to add Sections  17131.3, 24303, and 23456.3
  17131.3 and 24303  to the Revenue and Taxation
Code, relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1705, as amended, V. Manuel Perez. Income taxation: exclusion:
grants for specified energy property.
   The Personal Income Tax Law and the Corporation Tax Law provide
various exclusions from gross income that is subject to tax imposed
by those laws.
   This bill would provide under those laws that gross income does
not include any grant to the 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 a legislative finding and declaration as to
the public purpose served by the bill.
   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.  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 taxpayer who
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
calculated under Section 48 of the Internal Revenue Code, and
adjusted upward in accordance with rules applied by the Secretary of
the Treasury under Section 1603(f) of the American Recovery and
Reinvestment Tax 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 taxpayer who
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
calculated under Section 48 of the Internal Revenue Code, and
adjusted upward in accordance with rules applied by the Secretary of
the Treasury under Section 1603(f) of the American Recovery and
Reinvestment Tax Act of 2009 (Public Law 111-5). 
  SEC. 3.    Section 23456.3 is added to the Revenue
and Taxation Code, to read:
   23456.3.  (a) Section 56(g)(4)(B)(i) of the Internal Revenue Code
shall not apply with respect to any grant paid by the United States
Treasury pursuant to Section 1603 of Division B of the American
Recovery and Reinvestment Act of 2009 (Public Law 111-5).
   (b) This paragraph shall become operative on February 17, 2009,
and apply for taxable years ending on or after that date. 
   SEC. 4.   SEC. 3.   The Legislature
finds and declares that this act 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. 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.