Bill Text: CA SB1301 | 2021-2022 | Regular Session | Amended
Bill Title: Corporation Tax Law: Personal Income Tax Law: credits: green energy: manufacturing.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2022-06-20 - June 20 hearing: Heard for testimony only. [SB1301 Detail]
Download: California-2021-SB1301-Amended.html
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Amended
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Assembly
June 09, 2022 |
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Amended
IN
Senate
May 19, 2022 |
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Amended
IN
Senate
May 09, 2022 |
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Amended
IN
Senate
April 28, 2022 |
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Amended
IN
Senate
March 16, 2022 |
CALIFORNIA LEGISLATURE—
2021–2022 REGULAR SESSION
Senate Bill
No. 1301
| Introduced by Senator Becker |
February 18, 2022 |
An act to add and repeal Sections 17053.45 and 23610 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 1301, as amended, Becker.
Corporation Tax Law: Personal Income Tax Law: credits: green energy: manufacturing.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.
This bill would, for taxable years beginning on or after January 1, 2023, and before January 1, 2033, 2028, allow a credit against those taxes in an amount equal to 10% of the amount paid or incurred by a taxpayer during the taxable year for eligible manufacturing costs, except as otherwise specified. The bill would define “eligible manufacturing costs” to mean the cost of newly installed tangible personal property used in green energy products, as defined. The bill would make these provisions operative only for taxable years in which
resources are authorized for its purposes in the annual Budget Act or other statute.
Existing law requires any bill authorizing a new tax credit to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements.
This bill would state the intent of the Legislature to comply with the additional information requirement for include additional information required for any bill authorizing a new income tax credit.
This bill would take effect immediately as a tax levy.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NOBill Text
The people of the State of California do enact as follows:
SECTION 1.
Section 17053.45 is added to the Revenue and Taxation Code, to read:17053.45.
(a) (1) For taxable years beginning on or after January 1, 2023, and before January 1,(2) The amount of the credit allowed under this section shall be reduced by the amount paid or incurred by the taxpayer, upon which the credit is based, that was
allowed an exclusion under Part 1 (commencing with Section 6001) of this code, or under Section 26011.8 of the Public Resources Code.
(b) For purposes of this section, the following definitions apply:
(1) “Clean energy products” means products, or components used primarily in products, that are in at least one of the following categories:
(A) Products used to produce renewable or zero carbon energy, including solar panels, wind turbines, inverters, and related balance of system components.
(B) Zero-emission vehicles, including battery electric vehicles, hydrogen fuel cell electric vehicles, battery packs and fuel cells for zero-emission vehicles, electric
vehicle charging equipment, hydrogen fueling equipment, and other components directly related to powering vehicles without the use of fossil fuels.
(C) Zero-emission appliances, including heat pumps for space and water heating, induction cooktops, and other equipment used to replace equipment powered by fossil fuels in residential and commercial buildings.
(D) Energy storage primarily used for storing renewable or zero carbon energy.
(2) “Eligible manufacturing costs” means the costs of newly installed tangible personal property used in the manufacturing of
clean energy products.
(3) “Newly installed tangible personal property” means tangible personal property that has not previously been used in the state for the purpose of manufacturing clean energy products.
(c) In the case where any credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following year, and succeeding six years if necessary, until the credit has been exhausted.
(d) Any deduction or exclusion otherwise allowed under this part for any amount paid or incurred by the taxpayer upon which the credit is based shall be reduced by the amount of the credit allowed under this section.
(e) This section shall be operative only for taxable years in which resources are authorized for its purposes in the annual Budget Act or other statute.
(f) This section shall remain in effect only until December 1, 2033, 2028, and as of that date is repealed.
SEC. 2.
Section 23610 is added to the Revenue and Taxation Code, to read:23610.
(a) (1) For taxable years beginning on or after January 1, 2023, and before January 1,(2) The amount of the credit allowed under this section shall be reduced by the amount paid or incurred by the taxpayer, upon which the credit is based, that was allowed
an exclusion under Part 1 (commencing with Section 6001) of this code, code or under Section 26011.8 of the Public Resources Code.
(b) For purposes of this section, the following definitions apply: section:
(1) “Clean energy products” means products, or components used primarily in products, that are in at least one of the following categories:
(A) Products used to produce
renewable or zero carbon energy, including solar panels, wind turbines, inverters, and related balance of system components.
(B) Zero-emission vehicles, including battery electric vehicles, hydrogen fuel cell electric vehicles, battery packs and fuel cells for zero-emission vehicles, electric vehicle charging equipment, hydrogen fueling equipment, and other components directly related to powering vehicles without the use of fossil fuels.
(C) Zero-emission appliances, including heat pumps for space and water heating, induction cooktops, and other equipment used to replace equipment powered by fossil fuels in residential and commercial buildings.
(D) Energy storage primarily used for storing renewable or zero carbon
energy.
(2) “Eligible manufacturing costs” means the costs of newly installed tangible personal property used in the manufacturing of clean energy products.
(3) “Newly installed tangible personal property” means tangible personal property that has not previously been used in the state for the purpose of manufacturing clean energy products.
(c) In the case where any credit allowed by this section exceeds the “tax,” the excess may be carried over to reduce the “tax” in the following year, and succeeding six years if necessary, until the credit has been exhausted.
(d) Any deduction or exclusion otherwise allowed under this part for any amount paid or incurred by
the taxpayer upon which the credit is based shall be reduced by the amount of the credit allowed under this section.
(e) This section shall be operative only for taxable years in which resources are authorized for its purposes in the annual Budget Act or other statute.
(f) This section shall remain in effect only until December 1, 2033, 2028, and as of that date is repealed.
It is the intent of the Legislature to comply with Section 41 of the Revenue and Taxation Code.
SEC. 3.
(a) For the purpose of complying with Section 41 of the Revenue and Taxation Code with respect to the tax credits allowed by Sections 17053.45 and 23610 of the Revenue and Taxation Code, as added by this act, the Legislature finds and declares all of the following:(1) The specific purpose of the tax credits is to increase the amount of clean energy manufacturing in California.
(2) The performance indicator for the Legislature to use when measuring the effectiveness of the tax credits with respect to accomplishing the purpose identified in paragraph (1) is the total amount of investment associated with the tax credits allowed pursuant to this act.
(3) The data collection requirement to enable the Legislature to determine whether the tax credits are accomplishing the purpose identified in paragraph (1) is the data described in paragraph (2) with respect to any taxable year for which the tax credits are allowed.
(b) (1) The Franchise Tax Board shall provide a report to the Legislature on or before June 30, 2024, and annually thereafter, that contains both of the
following elements:
(A) The total amount of investment associated with the tax credits in any year for which the tax credits are operative.
(B) The year-over-year change in the total investment associated with the tax credits.
(2) The disclosure provisions of this subdivision shall be treated as an exception to Section 19542 of the Revenue and Taxation Code.
