Bill Text: CA AB585 | 2015-2016 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Outdoor Water Efficiency Act of 2015: personal income tax credits: outdoor water efficiency.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2016-02-01 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB585 Detail]

Download: California-2015-AB585-Introduced.html

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BILL NUMBER: AB 585	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Melendez

                        FEBRUARY 24, 2015

   An act to add and repeal Section 17053.37 of the Revenue and
Taxation Code, relating to taxation, to take effect immediately, tax
levy.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 585, as introduced, Melendez. Outdoor Water Efficiency Act of
2015: income tax credits: outdoor water efficiency.
   The Personal Income Tax Law allows various credits against the
taxes imposed by that law.
   This bill, for taxable years beginning on or after January 1,
2015, and before January 1, 2021, or an earlier specified date, would
allow a credit equal to 25% of the amount paid or incurred by a
qualified taxpayer for improvements made to outdoor landscapes on
real property in this state, not to exceed $2,500 per taxable year,
as specified.
   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.  The Legislature finds and declares all of the
following:
   (a) The 2014 water year, ending on September 30, was the third
driest based on the 119-year long statewide precipitation record.
   (b) Temperatures in the first nine months of 2014 were record
breaking-4.1 degrees above the 20th century average across the state.

   (c) Responding to these unprecedented dry and hot conditions, the
United States Drought Monitor classified more than 80 percent of
California in an "extreme" drought condition, with 58% of California
in an "exceptional" drought, the highest condition.
   (d) On January 17, 2014, the Governor called upon retail water
providers throughout California to reduce residential per capita
water use by 20% as compared to 2013 levels.
   (e) Outdoor water use accounts for the highest percentage of
regional water use.
   (f) Landscape design, installation, maintenance, and management
can and should be water efficient. The use of water-efficient
landscapes contributes to the state's efforts to increase the
reliability of its water supplies.
   (g) Municipalities and local water agencies are tasked with
enforcing water conservation ordinances to eliminate water waste and
restrict outdoor water use.
   (h) It is the intent of the Legislature to provide an income tax
credit for the purchase of outdoor water use efficiency improvements
during the exceptional drought that California is facing.
  SEC. 2.  Section 17053.37 is added to the Revenue and Taxation
Code, to read:
   17053.37.  (a) For each taxable year beginning on or after January
1, 2015, and before January 1, 2021, there shall be allowed as a
credit against the "net tax," as defined in Section 17039, an amount
equal to 25 percent of the amount paid or incurred during the taxable
year by a qualified taxpayer for water-efficiency improvements for
outdoor landscapes on qualified real property in this state, not
exceed two thousand five hundred dollars ($2,500) per taxable year.
   (b)  For the purposes of this section, the following definitions
shall apply:
   (1)  "Multifamily residential real property" means any real
property that is improved with, or consisting of, a building
containing more than one unit that is intended for human habitation,
or any mixed residential-commercial buildings or portions thereof
that are intended for human habitation. Multifamily residential real
property includes residential hotels but does not include hotels and
motels that are not residential hotels.
   (2) "Qualified real property" means either multifamily residential
real property or single-family real property.
   (3) "Qualified taxpayer" means the owner of any qualified real
property.
   (4) "Single-family residential real property" means any real
property that is improved with, or consisting of, a building
containing not more than one unit that is intended for human
habitation.
   (5) "Water-efficiency improvements" means any expenditure paid or
incurred by the qualified taxpayer to meet a locally adopted,
water-efficient landscape ordinance, regulation, or established
outdoor landscape efficiency program.
   (c) Section 42 does not apply to the credit allowed by this
section.
   (d) This section shall remain in effect until December 1, 2021,
and as of that date is repealed, unless the drought state of
emergency declared by the Governor on January 17, 2014, is terminated
before that date, in accordance with Section 8629 of the Government
Code. In that event, this section shall remain operative only until
midnight on the first day of the first calendar quarter commencing
more than 60 days after the date of the termination of the state of
emergency, and credits shall be allowed only for taxable years
beginning on or before the date this section becomes inoperative, and
as of December 1, 2021, 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.