Bill Text: CA AB2673 | 2015-2016 | Regular Session | Amended

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Bill Title: Sales and use tax exemption: income tax credits: hydrogen refueling station equipment.

Sponsorship: Moderate Partisan Bill (Republican 4-1)

Status: (Failed) 2016-06-15 - From committee: Without further action pursuant to Joint Rule 62(a). [AB2673 Detail]

Download: California-2015-AB2673-Amended.html

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BILL NUMBER: AB 2673	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 26, 2016
	AMENDED IN ASSEMBLY  MARCH 28, 2016

INTRODUCED BY   Assembly Member Harper
   (Coauthors: Assembly Members  Steinorth  
Brough,  O'Donnell,   Steinorth,  and Wilk)

                        FEBRUARY 19, 2016

   An act to add Section 6377.5 to, and to add and repeal Sections
17053.55 and 23655 of, the Revenue and Taxation Code, relating to
taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2673, as amended, Harper. Sales and use tax exemption: income
tax credits: hydrogen refueling station equipment.
   (1) Existing sales and use tax laws impose 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 in this state of tangible personal property
purchased from a retailer for storage, use, or other consumption in
this state. Existing law provides various exemptions from the taxes
imposed by those laws.
   This bill, on and after January 1, 2017, and before January 1,
2030, would exempt from those taxes the gross receipts from the sale
of, and the storage, use, or other consumption in this state of,
hydrogen refueling station equipment, as defined, purchased by a
recipient of a grant pursuant to the Alternative and Renewable Fuel
and Vehicle Technology Program for the development of hydrogen
refueling stations.
   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 in
accordance with the Transactions and Use Tax Law, which generally
conforms to the Sales and Use Tax Law. Amendments to state sales and
use taxes are incorporated into these laws.
   Section 2230 of the Revenue and Taxation Code provides that the
state will reimburse counties and cities for revenue losses caused by
the enactment of sales and use tax exemptions.
   This bill would provide that, notwithstanding Section 2230 of the
Revenue and Taxation Code, no appropriation is made and the state
shall not reimburse any local agencies for sales and use tax revenues
lost by them pursuant to this bill.
   (2) The Personal Income Tax Law and the Corporation Tax Law allow
various credits against the taxes imposed by those laws.
   This bill would allow to a grant recipient described above a
credit against those taxes for the taxable years beginning on or
after January 1, 2016, and before January 1, 2017, for an amount
equal to the sum of the sales tax reimbursements or use taxes
previously paid by a grant recipient for hydrogen refueling station
equipment during the period from January 1, 2014, to January 1, 2017,
as provided. The bill would repeal these provisions as of December
1, 2017.
   (3) 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 6377.5 is added to the Revenue and Taxation
Code, to read:
   6377.5.  (a) On and after January 1, 2017,  and before January
1, 2030,  there are exempted from the taxes imposed by this
part  the   both of the following: 
    (1)     The  gross receipts from the
sale  of, and the   of hydrogen refueling
station equipment to a qualified grant recipient. 
    (2)     The  storage, use, or other
consumption in this state  of,  of 
hydrogen refueling station equipment  to or  by a
qualified grant  recipient before January 1, 2030. 
 recipient. 
   (b) As used in this section, the following definitions shall
apply:
   (1) "Qualified grant recipient" means a person who has received a
grant pursuant to Section 44272 of the Health and Safety Code for the
development of hydrogen refueling stations within this state.
   (2) "Hydrogen refueling station" means any motor vehicle fueling
station which provides hydrogen fuel, either exclusively or
concurrently with other motor vehicle fuels, for use by fuel cell
electric vehicles.
   (3) "Hydrogen refueling station equipment" means any of the
following:
   (A) Equipment, including, but not limited to, machinery, devices,
contrivances, and component, repair, or replacement parts, whether
purchased separately or in conjunction with a complete machine and
regardless of whether the equipment or component parts are assembled
by the grant recipient or another party, to be located at a hydrogen
refueling station within this state and used exclusively for the
distribution, dispensing, storage, or production of hydrogen fuel for
fuel cell electric vehicles, including, but not limited to,
pressurized storage, compression, pre-cooling, and pumping of
hydrogen fuel.
   (B) Personal property that is software or software services,
regardless of location, and computer, computer-type, or data
processing hardware or hardware services, regardless of location,
that is used exclusively for the distribution, dispensing, storage,
or production of hydrogen fuel at a hydrogen refueling station for
fuel cell electric vehicles.
   (C) Any other personal property required to operate, control,
regulate, or maintain the hydrogen refueling station equipment set
forth in subparagraph (A) or (B).
   (4) "Fuel cell" means a device that directly or indirectly creates
electricity through an electrochemical process using hydrogen, or
hydrogen-rich, fuel and oxygen or another oxidizing agent.
  SEC. 2.  Section 17053.55 is added to the Revenue and Taxation
Code, to read:
   17053.55.  (a) For the taxable years beginning on or after January
1, 2016, and before January 1, 2017, there shall be allowed to a
qualified grant recipient a credit against the "net tax," as defined
in Section 17039, for the taxable year, in an amount equal to the sum
of sales tax reimbursements and use taxes previously paid during the
period from January 1, 2014, to January 1, 2017, by the qualified
grant recipient for hydrogen refueling station equipment.
   (b) For the purposes of this section, the terms "qualified grant
recipient" and "hydrogen refueling station equipment" have the same
meanings as specified in Section 6377.5.
   (c) In the case of a pass-thru entity, a credit under this section
shall be allowed to the pass-thru entity and passed through to the
partners or shareholders in accordance with the applicable provisions
of this part. As used in this subdivision, "pass-thru entity" means
any partnership or "S" corporation.
   (d) If a credit otherwise allowed by this section exceeds the "net
tax" for the taxable year, that portion of the credit that exceeds
the "net tax" may be carried over and added to the credit in the
succeeding taxable years, if necessary, until the credit is
exhausted.
   (e) 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 shall not apply to any
rule, guideline, or procedure prescribed by the Franchise Tax Board
pursuant to this section.
   (f) Section 41 does not apply to the credit allowed by this
section.
   (g) This section shall remain in effect only until December 1,
2017, and as of that date is repealed.
  SEC. 3.  Section 23655 is added to the Revenue and Taxation Code,
to read:
   23655.  (a) For the taxable years beginning on or after January 1,
2016, and before January 1, 2017, there shall be allowed to a
qualified grant recipient a credit against the "tax," as defined in
Section 23036, for the taxable year in an amount equal to the sum of
sales tax reimbursements and use taxes previously paid during the
period from January 1, 2014, to January 1, 2017, by the qualified
grant recipient for hydrogen refueling station equipment.
   (b) For the purposes of this section, the terms "qualified grant
recipient" and "hydrogen refueling station equipment" have the same
meanings as specified in Section 6377.5.
   (c) In the case of a pass-thru entity, a credit under this section
shall be allowed to the pass-thru entity and passed through to the
partners or shareholders in accordance with the applicable provisions
of this part. As used in this subdivision, "pass-thru entity" means
any partnership.
   (d) If a credit otherwise allowed by this section exceeds the "tax"
for the taxable year, that portion of the credit that exceeds the
"tax" may be carried over and added to the credit in the succeeding
taxable years, if necessary, until the credit is exhausted.
   (e) 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 shall not apply to any
rule, guideline, or procedure prescribed by the Franchise Tax Board
pursuant to this section.
   (f) Section 41 does not apply to the credit allowed by this
section.
   (g) This section shall remain in effect only until December 1,
2017, and as of that date is repealed.
  SEC. 4.  Notwithstanding Section 2230 of the Revenue and Taxation
Code, no appropriation is made by this act and the state shall not
reimburse any local agency for any sales and use tax revenues lost by
it under this act.
  SEC. 5.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.