Bill Text: CA AB2589 | 2009-2010 | Regular Session | Amended
Bill Title: Income taxes: renewable energy credits.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2010-05-03 - In committee: Set, first hearing. Held without recommendation. [AB2589 Detail]
Download: California-2009-AB2589-Amended.html
BILL NUMBER: AB 2589 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 8, 2010
INTRODUCED BY Assembly Member Tran
FEBRUARY 19, 2010
An act to amend Section 43511 of the Revenue and Taxation
Code, relating to taxation. An act to add and repeal
Sections 17053.64 and 23661 of the Revenue and Taxation Code,
relating to taxation, to take effect immediately , tax
levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 2589, as amended, Tran. Hazardous Substances Tax Law.
Income taxes: renewable energy credits.
The Personal Income Tax Law and the Corporation Tax Law allow
various credits against the taxes imposed by those laws.
This bill would, until January 1, 2016, allow a credit, under both
laws, to qualified producers in the amount of $0.018 per
kilowatthour produced by dual renewable energy devices, as provided.
This bill would, upon the appropriation of the Legislature,
transfer amounts necessary to refund that credit from the General
Fund to the Treasurer for the purpose of making those refunds.
This bill would take effect immediately as a tax levy.
The existing California Taxpayers' Bill of Rights, which is
administered by the State Board of Equalization, governs the
assessment, audit, and collection of taxes under, among other acts,
the Hazardous Substances Tax Law.
This bill would make a technical nonsubstantive change to that
provision.
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 17053.64 is added to the
Revenue and Taxation Code , to read:
17053.64. (a) For each taxable year beginning on or after January
1, 2011, there shall be allowed a credit against the "net tax," as
defined by Section 17039, an amount equal to one and eight-tenths
cents ($0.018) per kilowatthour (KWh) produced by a dual renewable
energy device during the taxable year by a qualified producer at a
facility located in this state or within three miles off the shore of
this state.
(b) For purposes of this section:
(1) "Dual renewable energy device" means a device that utilizes
two different renewable energy generating technologies in the same
device where neither renewable generating technology produces less
than 20 percent of the total energy production by the device.
(2) "Facility" as defined in subdivision (b) of the Section 25741
of the Public Resources Code.
(3) (A) "Qualified producer" means any taxpayer who owns a
facility and who is engaged in the production of electricity using
dual renewable energy devices.
(B) In the case of any passthrough entity, the determination of
whether a taxpayer is a qualified producer under this section shall
be made at the entity level and any credit under this section or
Section 23661 shall be allowed to the passthrough entity and passed
through to the partners or shareholders in accordance with applicable
provisions of this part or Part 11(commencing with Section 23001).
For purposes of this paragraph, "passthrough entity" means any
partnership, limited liability company, or "S" corporation.
(c) Not later than 25 days after the end of each calendar quarter,
a qualified producer shall submit any information that the Franchise
Tax Board or the Treasurer requires to the Franchise Tax Board to
substantiate the total amount of kilowatthours produced.
(d) In the case where the credit allowed by this section exceeds
the taxpayer's liability computed under this part, the excess shall
be credited against other amounts due, if any, from the qualified
producer and the balance, if any, shall be refunded to the qualified
producer on an annual basis.
(e) The Franchise Tax Board shall submit an annual list of
qualified producers that are eligible to receive a refund under this
section, to the Treasurer, in a form agreed upon by the Franchise Tax
Board and the Treasurer.
(f) Upon appropriation by the Legislature the amounts that are
determined by the Treasurer to be necessary to make the refunds
required by subdivision (e) shall be transferred to the Treasurer for
the purpose of making those refunds.
(g) This section shall remain in effect only until January 1,
2016, and as of that date is repealed.
SEC. 2. Section 23661 is added to the
Revenue and Taxation Code , to read:
23661. (a) For each taxable year beginning on or after January 1,
2011, there shall be allowed a credit against the "tax," as defined
by Section 23036, an amount equal to one and eight-tenths cents
($0.018) per kilowatthour (KWh) produced by a dual renewable energy
device during the taxable year by a qualified producer at a facility
located in this state or within three miles off the shore of this
state.
(b) For purposes of this section:
(1) "Dual renewable energy device" means a device that utilizes
two different renewable energy generating technologies in the same
device where neither renewable generating technology produces less
than 20 percent of the total energy production by the device.
(2) "Facility" as defined in subdivision (b) of the Section 25741
of the Public Resources Code.
(3) (A) "Qualified producer" means any taxpayer who owns a
facility and who is engaged in the production of electricity using
dual renewable energy devices.
(B) In the case of any passthrough entity, the determination of
whether a taxpayer is a qualified producer under this section shall
be made at the entity level and any credit under this section or
Section 17053.64 shall be allowed to the passthrough entity and
passed through to the partners or shareholders in accordance with
applicable provisions of this part or Part 10 (commencing with
Section 17001). For purposes of this paragraph, "passthrough entity"
means any partnership, limited liability company, or "S" corporation.
(c) Not later than 25 days after the end of each calendar quarter,
a qualified producer shall submit any information that the Franchise
Tax Board or the Treasurer requires to the Franchise Tax Board to
substantiate the total amount of kilowatthours produced.
(d) In the case where the credit allowed by this section exceeds
the taxpayer's liability computed under this part, the excess shall
be credited against other amounts due, if any, from the qualified
producer and the balance, if any, shall be refunded to the qualified
producer on an annual basis.
(e) The Franchise Tax Board shall submit an annual list of
qualified producers that are eligible to receive a refund under this
section, to the Treasurer, in a form agreed upon by the Franchise Tax
Board and the Treasurer.
(f) Upon appropriation by the Legislature the amounts that are
determined by the Treasurer to be necessary to make the refunds
required by subdivision (e) shall be transferred to the Treasurer for
the purpose of making those refunds.
(g) This section shall remain in effect only until January 1,
2016, and as of that date is repealed.
SEC. 3. 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 43511 of the Revenue and
Taxation Code is amended to read:
43511. (a) The board shall administer this article.
(b) Unless the context indicates otherwise, the provisions of this
article shall apply to this part.
