Bill Text: CA SB1266 | 2021-2022 | Regular Session | Introduced

California Senate Bill 1266 (Prior Session Legislation)

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

Bill Title: Income taxes: credits: designated wildfire zones.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Engrossed - Dead) 2022-06-20 - June 20 hearing: Heard for testimony only. [SB1266 Detail]

Download: California-2021-SB1266-Introduced.html

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill

No. 1266

Introduced by Senator Borgeas

February 18, 2022

An act to add and repeal Section 17053.49 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.

LEGISLATIVE COUNSEL'S DIGEST

SB 1266, as introduced, Borgeas. Income taxes: credits: designated wildfire zones.

The Personal Income Tax Law allows various credits against the taxes imposed by that law. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements.

This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2023, and before January 1, 2028, in an amount that is equal to 50% of the amount incurred by a natural person or a small business, as defined, during the taxable year for the purchase of a backup electricity generator that does not exceed $7,000 or a solar battery that does not exceed $10,000, for use in a residence or commercial property in a designated wildfire zone, as defined. The bill would also include additional information required for any bill authorizing a new tax expenditure.

Existing law requires that any bill introduced on or after January 1, 2020, that would authorize certain tax expenditures, as defined, or tax exemptions contain, among other things, specific goals, purposes, and objectives that the tax expenditure or exemption will achieve, detailed performance indicators, and data collection requirements.

This bill would include additional information required for any bill authorizing a new tax expenditure.

This bill would take effect immediately as a tax levy.

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

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

SECTION 1.

Section 17053.49 is added to the Revenue and Taxation Code, to read:

17053.49.

(a) (1) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, an amount equal to the amount specified in paragraph (2) for a qualified expenditure paid or incurred by the qualified taxpayer during the taxable year.

(2) The amount of the credit allowed pursuant to this section for the taxable year shall be equal to 50 percent of the amount paid or incurred by a qualified taxpayer during the taxable year for a qualified expenditure, subject to the following, as applicable:

(A) If the qualified expenditure is the purchase of a backup electricity generator pursuant to subparagraph (A) of paragraph (3) of subdivision (b), the amount shall not exceed three thousand five hundred dollars ($3,500) per taxable year.

(B) If the qualified expenditure is the purchase of a solar battery pursuant to subparagraph (B) of paragraph (3) of subdivision (b), the amount shall not exceed five thousand dollars ($5,000) per taxable year.

(b) For purposes of this section:

(1) “Designated wildfire zone” means a very high fire hazard severity zone, as determined by the Department of Forestry and Fire Protection pursuant to Section 51178 of the Government Code, or within a high or very high fire hazard severity zone as indicated on maps adopted by the Department of Forestry and Fire Protection pursuant to Section 4202 of the Public Resources Code.

(2) “Qualified taxpayer” means a natural person or a small business that incurs a qualified expenditure.

(3) “Qualified expenditure” means the purchase of one of the following:

(A) A backup electricity generator that does not exceed seven thousand dollars ($7,000) for use in a residence or commercial property in a designated wildfire zone.

(B) A solar battery that does not exceed ten thousand dollars ($10,000) for use in a residence or commercial property in a designated wildfire zone.

(4) “Small business” means a business that is all of the following:

(A) Independently owned and operated.

(B) Has fewer than 100 employees.

(c) In the case where the credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following taxable year, and succeeding years if necessary, until the credit is exhausted.

(d) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.

SEC. 2.

(a) For the purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares the following:

(1) The goal, purpose, or objective of Section 17053.49 of the Revenue and Taxation Code, as added by this act, hereafter “the credit,” is to encourage the purchase of backup electricity generators or solar batteries that are necessary to protect the health and safety of residents and businesses in designated wildfire zones.

(2) The performance indicator for the Legislature to use when measuring whether the credit meets the goal, purpose, or objective specified in paragraph (1) is how many taxpayers are allowed the credits.

(b) Notwithstanding Section 19542 of the Revenue and Taxation Code, the Franchise Tax Board shall annually publish anonymized data on the credit through the 2028 calendar year.