Bill Text: CA AB2928 | 2021-2022 | Regular Session | Amended

California Assembly Bill 2928 (Prior Session Legislation)

Bill Title: Personal income taxes: Clean Cars 4 All Program: retirement and replacement.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-04-18 - In committee: Hearing postponed by committee. [AB2928 Detail]

Download: California-2021-AB2928-Amended.html

Amended IN Assembly March 17, 2022

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Assembly Bill

No. 2928

Introduced by Assembly Member Cooper

February 18, 2022

An act to amend Section 44125.5 of the Health and Safety Code, and to add Section 17137 to the Revenue and Taxation Code, relating to air pollution.

LEGISLATIVE COUNSEL'S DIGEST

AB 2928, as amended, Cooper. ~~Vehicles:~~ Personal income taxes: Clean Cars 4 All Program: retirement and replacement.

~~Existing~~

(1) Existing law establishes the Clean Cars 4 All Program, which is administered by the State Air Resources Board, to focus on achieving reductions in the emissions of greenhouse gases, improvements in air quality, and benefits to low-income state residents through the replacement of high-polluter motor vehicles with cleaner and more efficient motor vehicles or a mobility option. Existing law creates the enhanced fleet modernization program to provide compensation for the retirement and replacement of passenger vehicles and light-duty and medium-duty trucks that are high polluters. Existing law requires the state board to annually post on its internet website a performance analysis of the replacement and mobility options component of the programs that includes information regarding how incentive levels can be modified to maximize participation and emissions reductions.

This bill would require the performance analysis to include information specifically regarding how incentive levels can be modified to maximize participation in low-income or disadvantaged communities.

(2) The Personal Income Tax Law, in modified conformity with federal law, generally defines “gross income” as income from whatever source derived, except as specifically excluded, and provides various exclusions from gross income for purposes of computing tax liability.
This bill, for taxable years beginning on or after January 1, 2022, would exclude from gross income moneys awarded to a taxpayer pursuant to the Clean Cars 4 All Program.
Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill would include additional information required for any bill authorizing a new tax expenditure.

Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO

The people of the State of California do enact as follows:

SECTION 1.

Section 44125.5 of the Health and Safety Code is amended to read:

44125.5.

Beginning no later than July 1, 2019, and every year thereafter, the state board, for both the program and Clean Cars 4 All, shall collect and post on its internet website all of the following:

(a) The performance of both programs relative to the goals set pursuant to subdivision (b) of Section 44124.5 and subdivision (b) of Section 44125.

(b) An accounting that includes, but need not be limited to, moneys allocated to the program and Clean Cars 4 All and the expenditures of the program and Clean Cars 4 All by region.

(c) A performance analysis broken down by district of the replacement and mobility options component of the program and Clean Cars 4 All to identify areas to be emphasized when setting future goals or updating the guidelines for the program and Clean Cars 4 All. The analysis shall include all of the following:

(1) Whether a district implementing the replacement and mobility options component of the program or Clean Cars 4 All has a backlog or a waiting list for applicants and recommendations from the district or state board on how to eliminate the backlog or waiting list.

(2) An evaluation of the funding for targeted outreach in low-income or disadvantaged communities, including whether the funding should be enhanced or modified to reach the goals set pursuant to subdivision (b) of Section 44124.5 and subdivision (b) of Section 44125.

(3) How incentive levels can be modified to maximize participation in low-income or disadvantaged communities and to maximize emissions reductions.

SEC. 2.

Section 17137 is added to the Revenue and Taxation Code, to read:

17137.
For taxable years beginning on or after January 1, 2022, gross income does not include moneys awarded to a taxpayer pursuant to the Clean Cars 4 All Program (Article 11 (commencing with Section 44124.5) of Chapter 5 of Part 5 of Division 26 of the Health and Safety Code).

SEC. 3.
For the purposes of complying with Section 41 of the Revenue and Taxation Code, with respect to Section 17137 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares all of the following:
(a) The specific goal, purpose, and objective that the exclusion will achieve is to increase the number of low-income California drivers participating in the Clean Cars 4 All Program and to encourage those drivers to scrap their older, high-polluting car and replace it with a zero- or near-zero emission vehicle.
(b) Detailed performance indicators for the Legislature to use in determining whether the exclusion meets the goal, purpose, and objective described in subdivision (a) are the following:
(1) The number of taxpayers excluding from gross income moneys received from the Clean Cars 4 All Program pursuant to Section 17137 of the Revenue and Taxation Code.
(2) The total dollar amount of moneys excluded from gross income pursuant to Section 17137 of the Revenue and Taxation Code.
(3) The total number of taxpayers in each tax bracket who excluded moneys from gross income pursuant to Section 17137 of the Revenue and Taxation Code.
(c) (1) On or before March 1, 2024, and annually thereafter, the Franchise Tax Board shall analyze the performance indicators in subdivision (b) and shall report its findings, in compliance with Section 9795 of the Government Code, to the Legislature.
(2) The disclosure provisions of this paragraph shall be treated as an exception to Section 19542 under Article 2 (commencing with Section 19542) of Chapter 7 of Part 10.2 of Division 2 of the Revenue and Taxation Code.