Bill Text: CA SB358 | 2011-2012 | Regular Session | Amended

California Senate Bill 358 (Prior Session Legislation)

Bill Title: Income taxes: gross income: exclusion: depreciation

Spectrum: Slight Partisan Bill (Republican 3-1)

Status: (Introduced - Dead) 2012-01-31 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB358 Detail]

Download: California-2011-SB358-Amended.html

BILL NUMBER: SB 358	AMENDED
	BILL TEXT

	AMENDED IN SENATE  JANUARY 4, 2012
	AMENDED IN SENATE  MAY 23, 2011
	AMENDED IN SENATE  APRIL 26, 2011

INTRODUCED BY   Senator Cannella
   (Coauthors: Senators Fuller and Rubio)
   (Coauthor: Assembly Member Olsen)

                        FEBRUARY 15, 2011

   An act to add Sections 17158, 18036.1, 24316, and 24916.1 to the
Revenue and Taxation Code, relating to taxation, to take effect
immediately, tax levy.



	LEGISLATIVE COUNSEL'S DIGEST


   SB 358, as amended, Cannella. Income  tax  
taxes  : gross income: exclusion: depreciation deduction: air
quality funds.
   The Personal Income Tax Law and the Corporation Tax Law define
gross income as all income from whatever source derived, unless
specifically excluded.
   This bill would exclude from gross income any amount provided to a
person by the State Air Resources Board, an air pollution control
district, or an air quality management district  , as defined,
 for the purpose of air pollution reduction.
   The Personal Income Tax Law and the Corporation Tax Law, in
modified conformity with federal income tax laws, determine the basis
for property when determining a gain or loss on the sale or other
disposition of that property or when determining a depreciation
deduction relating to that property.
   This bill would provide, under both laws, that for purposes of
determining the gain or loss from the sale or other deposition of the
property or when determining the depreciation deduction, the basis
of the property shall be reduced to the extent the property was
acquired with a grant amount by the State Air Resources Board, an air
pollution control district, or an air quality management district
 , as defined,  for the purpose of air pollution reduction.
   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 17158 is added to the Revenue and Taxation
Code, to read:
   17158.   (a)    Gross income shall not include
any amount provided by the State Air Resources Board, an air
pollution control district, or an air quality management district to
any person for the purpose of air pollution reduction. 
   (b) For purposes of this section, the following definitions apply:
 
   (1) "Air pollution control district" means any district created or
continued in existence pursuant to the provisions of Part 3
(commencing with Section 40000) of Division 26 of the Health and
Safety Code.  
   (2) "Air quality management district" means any district created
or continued in existence pursuant to the provisions of Part 3
(commencing with Section 40000) of Division 26 of the Health and
Safety Code.  
   (c) (1) The State Air Resources Board, an air pollution control
district, or an air quality management district shall certify to the
taxpayer the amount provided to the taxpayer for the purpose of air
pollution reduction.  
   (2) The taxpayer shall, upon request, provide a copy of the
certification to the Franchise Tax Board. 
  SEC. 2.  Section 18036.1 is added to the Revenue and Taxation Code,
to read:
   18036.1.   (a)    Notwithstanding any other
provision to the contrary, for purposes of this part, the basis of
property for determining gain or loss on the sale or other
disposition of property, or for determining depreciation, shall be
reduced to the extent the property was acquired with a grant or other
amount that   where the grant or other amount
 was provided to a person by the State Air Resources Board, an
air pollution control district, or an air quality management district
for the purpose of air pollution reduction  and is excluded from
gross income pursuant to Section 17158  .
    (b) For purposes of this section, the following definitions
apply: 
    (1) "Air pollution control district" means any district
created or continued in existence pursuant to the provisions of Part
3 (commencing with Section 40000) of Division 26 of the Health and
Safety Code. 
    (2) "Air quality management district" means any district
created or continued in existence pursuant to the provisions of Part
3 (commencing with Section 40000) of Division 26 of the Health and
Safety Code. 
    (c) (1) The State Air Resources Board, an air pollution
control district, or an air quality management district shall
certify to the taxpayer the amount provided to the taxpayer for the
purpose of air pollution reduction. 
    (2) The taxpayer shall, upon request, provide a copy of the
certification to the Franchise Tax Board. 
  SEC. 3.  Section 24316 is added to the Revenue and Taxation Code,
to read:
   24316.   (a)    Gross income shall not include
any amount provided by the State Air Resources Board, air pollution
control districts, and air quality management districts to any person
for the purpose of air pollution reduction.
    (b) For purposes of this section, the following definitions
apply: 
    (1) "Air pollution control district" means any district
created or continued in existence pursuant to the provisions of Part
3 (commencing with Section 40000) of Division 26 of the Health and
Safety Code. 
    (2) "Air quality management district" means any district
created or continued in existence pursuant to the provisions of Part
3 (commencing with Section 40000) of Division 26 of the Health and
Safety Code. 
    (c) (1) The State Air Resources Board, an air pollution
control district, or an air quality management district shall certify
to the taxpayer the amount provided to the taxpayer for the purpose
of air pollution reduction. 
    (2) The taxpayer shall, upon request, provide a copy of the
certification to the Franchise Tax Board. 
  SEC. 4.  Section 24916.1 is added to the Revenue and Taxation Code,
to read:
   24916.1.  Notwithstanding any other provision to the contrary, for
purposes of this part, the basis of property for determining gain or
loss on the sale or other disposition of property, or for
determining depreciation, shall be reduced to the extent the property
was acquired with a grant or other amount  that 
 where the grant or other amount  was provided to a person
by the State Air Resources Board, an air pollution control district,
or an air quality management district for the purpose of air
pollution reduction  and is excluded from gross income pursuant
to Sec   tion 24316  .
    (b) For purposes of this section, the following definitions
apply: 
    (1) "Air pollution control district" means any district
created or continued in existence pursuant to the provisions of Part
3 (commencing with Section 40000) of Division 26 of the Health and
Safety Code. 
    (2) "Air quality management district" means any district
created or continued in existence pursuant to the provisions of Part
3 (commencing with Section 40000) of Division 26 of the Health and
Safety Code. 
    (c) (1) The State Air Resources Board, an air pollution
control district, or an air quality management district shall certify
to the taxpayer the amount provided to the taxpayer for the purpose
of air pollution reduction. 
    (2) The taxpayer shall, upon request, provide a copy of the
certification to the Franchise Tax Board. 
   SEC. 5.    The State Air Resources Board, air
pollution control districts, and air quality districts shall provide
the Franchise Tax Board annually with a list of taxpayers and amounts
granted for the purpose of air pollution reduction to each taxpayer
by each entity. 
   SEC. 5.   SEC. 6.   This act provides
for a tax levy within the meaning of Article IV of the Constitution
and shall go into immediate effect.