Bill Text: CA SB49 | 2009-2010 | Regular Session | Introduced

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

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Bill Title: Income tax credit: qualified principal residence.

Spectrum: Moderate Partisan Bill (Republican 11-2)

Status: (Introduced - Dead) 2010-02-01 - Returned to Secretary of Senate pursuant to Joint Rule 56. [SB49 Detail]

Download: California-2009-SB49-Introduced.html

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BILL NUMBER: SB 49	INTRODUCED
	BILL TEXT


INTRODUCED BY   Senator Dutton

                        JANUARY 13, 2009

   An act to add and repeal Section 17059 of the Revenue and Taxation
Code, relating to taxation, to take effect immediately, tax levy.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 49, as introduced, Dutton. Income tax credit: qualified
principal residence.
   The Personal Income Tax Law authorizes various credits against the
taxes imposed by that law.
   This bill would allow a credit for the purchase during a specified
period of a qualified principal residence, as defined, in an amount
equal to that portion of the purchase price that does not exceed
$10,000, as provided.
   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 17059 is added to the Revenue and Taxation
Code, to read:
   17059.  (a) (1) In the case of any individual who is a purchaser
of a qualified principal residence during the taxable year, there
shall be allowed as a credit against the "net tax," as defined in
Section 17039, an amount equal to that portion of the purchase price
of the residence that does not exceed ten thousand dollars ($10,000).

   (2) The amount of the credit allowed under paragraph (1) shall be
equally divided among the three taxable years beginning with the
taxable year in which the purchase of the qualified principal
residence is made.
   (b) (1) The credit under this section shall be allowed only with
respect to purchases made on or after March 1, 2009, and before March
1, 2010.
   (2) The credit under this section shall be allowed only for one
purchase of a qualified principal residence with respect to any
individual.
   (c) For purposes of this section:
   (1) "Qualified principal residence" means a new or previously
unoccupied single-family residence, whether detached or attached,
that is purchased to be the principal residence of the purchaser for
a minimum of one year.
   (2) No credit shall be allowed under this section unless the
taxpayer submits a certification by the seller of the residence that
the residence is a new or previously unoccupied single-family
residence.
   (3) Any credit allowed by this section shall be disallowed, and
shall be recaptured in accordance with rules established by the
Franchise Tax Board, if the individual does not occupy the qualified
principal residence as his or her principal residence for at least
one year during the period that this section is in effect.
   (d) (1) In the case of two married individuals filing separately,
subdivision (a) shall be applied to each individual by substituting
five thousand dollars ($5,000) for ten thousand dollars ($10,000) in
subdivision (a).
   (2) If two or more individuals who are not married purchase a
qualified principal residence, the amount of the credit allowed under
subdivision (a) shall be allocated among the individuals in the same
manner as each individual's percentage of ownership, except that the
total amount of the credits allowed to all of those individuals
shall not exceed ten thousand dollars ($10,000).
   (e) This section shall remain in effect only until December 1,
2013, and as of that date is repealed.
  SEC. 2.  This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.