Bill Text: CA SB457 | 2021-2022 | Regular Session | Amended


Bill Title: Personal income taxes: credit: reduction in vehicles.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Engrossed) 2022-08-11 - From committee: Do pass. (Ayes 14. Noes 0.) (August 11). [SB457 Detail]

Download: California-2021-SB457-Amended.html

Amended  IN  Assembly  June 21, 2022
Amended  IN  Assembly  May 26, 2022

CALIFORNIA LEGISLATURE— 2021–2022 REGULAR SESSION

Senate Bill
No. 457


Introduced by Senators Senator Portantino and Wilk
(Principal coauthor: Senator Borgeas)(Coauthor: Senator Archuleta)

February 16, 2021


An act to add and repeal Section 17053.92 to of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


SB 457, as amended, Portantino. Personal income taxes: credit: reduction in vehicles.
The Personal Income Tax Law allows various credits against the taxes imposed by the law.
This bill would, for taxable years beginning on or after January 1, 2023, and before January 1, 2028, allow a credit against those taxes in an amount of $2,500 for each household member, as defined, that exceeds the number of registered vehicles, as defined, and would limit the amount of the credit allowed to $7,500.
Existing law requires a 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 provide findings and declarations relating to the goals of this credit. include additional information required for a bill authorizing a new tax credit.
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 17053.92 is added to the Revenue and Taxation Code, to read:

17053.92.
 (a) For taxable years beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed, subject to subdivision (b), a credit against the “net tax,” as defined in Section 17039, in an amount of two thousand five hundred dollars ($2,500) for each household member that exceeds the number of registered vehicles.
(b) The amount of the credit allowed by this section shall not exceed seven thousand five hundred dollars ($7,500).
(c) For purposes of this section:
(1) “Electric bicycle” means a bicycle equipped with fully operable pedals and an electric motor of less than 750 watts.
(2) “Household member” means either of the following with respect to a single tax return:
(A) A taxpayer.
(B) A person who is at least 16 years of age and claimed as a dependent.
(3) “Registered vehicle” means a vehicle that was registered in any state to a household member, or an entity in which a household member holds a controlling interest, for at least six months of the taxable year for which the credit allowed by this section is claimed.
(4) (A) “Vehicle” means a device by which a person or property may be propelled, moved, or drawn upon a highway, excepting a device moved exclusively by human power or used exclusively upon stationary rails or tracks.
(B) “Vehicle” does not mean an electric bicycle.
(d) A taxpayer may claim the credit allowed by this section only on a return in the form determined by the Franchise Tax Board.
(e) For the purposes of complying with Section 41, the Legislature finds and declares that the goals of this credit are to incentivize a taxpayer to give up a vehicle or reward people for not using a vehicle. all of the following:
(1) The specific goals, purposes, and objectives of this section are as follows:
(A) To meet California’s ambitious climate goals and reduce greenhouse gas emissions from personal vehicles.
(B) To incentivize a taxpayer to give up a vehicle or reward people for not using a vehicle in order to help the environment and create healthier communities.
(2) To measure whether the credit achieves its intended purpose, for any taxable year for which a credit is allowed pursuant to this section, the Franchise Tax Board shall prepare a written report regarding all of the following:
(A) The number of taxpayers claiming the credit.
(B) The average credit amount on tax returns claiming the credit.
(3) (A) The Franchise Tax Board shall provide the written report prepared pursuant to paragraph (2) to the Senate Committee on Budget and Fiscal Review, the Assembly Committee on Budget, the Senate Committee on Appropriations, the Assembly Committee on Appropriations, the Senate Committee on Governance and Finance, and the Assembly Committee on Revenue and Taxation.
(B) The report required by this paragraph shall be submitted on or before January 15 of the year following the taxable year relevant to the report.
(f) This section shall be operative only until December 1, 2028, and as of that date is repealed.

SEC. 2.

 This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect.
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