Bill Text: CA SB462 | 2009-2010 | Regular Session | Introduced
Bill Title: Income and corporation taxes: credits: manufacturers of
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2010-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB462 Detail]
Download: California-2009-SB462-Introduced.html
BILL NUMBER: SB 462 INTRODUCED
BILL TEXT
INTRODUCED BY Senator Strickland
FEBRUARY 26, 2009
An act to add and repeal Sections 17053 and 23650 of the Revenue
and Taxation Code, relating to taxation, to take effect immediately,
tax levy.
LEGISLATIVE COUNSEL'S DIGEST
SB 462, as introduced, Strickland. Income and corporation taxes:
credits: manufacturers of diesel exhaust filters.
The Personal Income Tax Law and the Bank and Corporation Tax Law
authorize various credits against the taxes imposed by those laws.
This bill would authorize a credit against those taxes for each
taxable year beginning on or after January 1, 2009, and before
December 1, 2019, of $10,000 for a qualified taxpayer, as defined,
that is a manufacturer of verified diesel emission control
strategies.
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 17053 is added to the Revenue and Taxation
Code, to read:
17053. (a) For taxable years beginning on or after January 1,
2009, and before December 1, 2019, a qualified taxpayer is allowed a
credit against the "net tax," as defined in Section 17039, of ten
thousand dollars ($10,000).
(b) For purposes of this section:
(1) "Diesel particulate matter" means the particles found in the
exhaust of diesel-fueled compression ignition engines.
(2) "Manufacturing" means the activity of converting or
conditioning property by changing the form, composition, quality, or
character of the property for ultimate sale at retail or use in the
manufacturing of a product to be ultimately sold at retail.
Manufacturing includes any improvements to tangible personal property
that result in a greater service life or greater functionality than
that of the original property.
(3) "Qualified taxpayer" means a manufacturer that is engaged in
the manufacturing of verified diesel emission control strategies.
(4) "Verified diesel emission control strategies" means emissions
control strategies, designed primarily for the reduction of diesel
particulate matter emissions, that have been approved or certified,
or are pending approval or certification, by the State Air Resources
Board.
(c) No credit shall be allowed pursuant to this section unless the
qualified taxpayer does all of the following:
(1) Obtains and retains the letter of approval or certification
from the State Air Resources Board regarding the verified diesel
emission control strategies manufactured by the qualified taxpayer.
(2) Provides the Franchise Tax Board with the State Air Resources
Board's letter of approval or certification at the Franchise Tax
Board's request.
(d) 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 year, and for succeeding taxable years if
necessary, until the credit is exhausted.
(e) This section shall remain in effect only until December 1,
2019, and as of that date is repealed.
SEC. 2. Section 23650 is added to the Revenue and Taxation Code,
to read:
23650. (a) For taxable years beginning on or after January 1,
2009, and before January 1, 2019, a qualified taxpayer is allowed a
credit against the "tax," as defined in Section 23036, of ten
thousand dollars ($10,000).
(b) For purposes of this section:
(1) "Diesel particulate matter" means the particles found in the
exhaust of diesel-fueled compression ignition engines.
(2) "Manufacturing" means the activity of converting or
conditioning property by changing the form, composition, quality, or
character of the property for ultimate sale at retail or use in the
manufacturing of a product to be ultimately sold at retail.
Manufacturing includes any improvements to tangible personal property
that result in a greater service life or greater functionality than
that of the original property.
(3) "Qualified taxpayer" means a manufacturer that is engaged in
the manufacturing of verified diesel emission control strategies.
(4) "Verified diesel emission control strategies" means emissions
control strategies, designed primarily for the reduction of diesel
particulate matter emissions, that have been approved or certified,
or are pending approval or certification, by the State Air Resources
Board.
(c) No credit shall be allowed pursuant to this section unless the
qualified taxpayer does all of the following:
(1) Obtains and retains the letter of approval or certification
from the State Air Resources Board regarding the verified diesel
emission control strategies manufactured by the qualified taxpayer.
(2) Provides the Franchise Tax Board with the State Air Resources
Board's letter of approval or certification at the Franchise Tax
Board's request.
(d) In the case where the credit allowed by this section exceeds
the "tax," the excess may be carried over to reduce the "tax" in the
following year, and for succeeding taxable years if necessary, until
the credit is exhausted.
(e) This section shall remain in effect only until December 1,
2019, and as of that date 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.
