BILL NUMBER: AB 1159INTRODUCED BILL TEXT INTRODUCED BY Assembly Member V. Manuel Perez FEBRUARY 27, 2009 An act to add and repeal Sections 17053.71 and 23671 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGEST AB 1159, as introduced, V. Manuel Perez. Income and corporation tax credits: sales and use taxes: qualified property. The Personal Income Tax Law and the Corporation Tax Law authorize various credits against the taxes imposed by those laws. This bill would, for taxable years beginning on or after January 1, 2009, and before January 1, 2016, allow a credit in an amount equal to the sales and use tax paid or incurred for the purchase of qualified property, as defined. 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. This act shall be known and may be cited as the California Cleantech Advantage Act of 2009. SEC. 2. (a) The Legislature finds and declares all of the following: (1) That the enactment of Assembly Bill 32 (Chapter 488, Statutes of 2006) made California a national and global policy leader in the effort to reduce greenhouse gases that pose serious threats to our natural environment and to our residents' health and safety. (2) That the prospect of global warming is very real and may already be impacting our climate and ecosystems. (3) That there is an urgent need to develop, market, and use products, equipment, and services that reduce the formation of greenhouse gases. (b) The Legislature further finds and declares: (1) That the level of national and global concern over greenhouse gas emissions has begun to focus American technological research and investment on developing industrial and consumer products and processes that produce zero or ultra-low emissions of carbon dioxide, the primary greenhouse gas. (2) It is in the best interest of this state to expeditiously foster a competitive cleantech industry in California by offering investors financial incentives to spur cleantech research and development, production, and utilization of environmentally clean products. (3) That Cleantech Venture reached eight billion four hundred million dollars ($8,400,000,000) in 2008. (4) That growing cleantech investment will help create as many as 114,000 new, high-paying, skilled jobs, improve the state's air and water quality, and offer businesses reliable and affordable sources of alternative energy. (c) Therefore, it is the intent of the Legislature to enact and enhance targeted tax credits to increase investment in cleantech activities and renewable energy, as well as maintain and enhance this state's competitive lead in attracting investment capital, clean industry, and high-paying, skilled jobs. SEC. 3. Section 17053.71 is added to the Revenue and Taxation Code, to read: 17053.71. (a) For each taxable year beginning on or after January 1, 2009, and before January 1, 2016, there shall be allowed as a credit against the "net tax," as defined by Section 17039, an amount equal to the sales and use tax paid or incurred during the taxable year by the taxpayer for the taxpayer's purchase of qualified property. (b) For purposes of this section, "qualified property" means any property used in an enterprise zone, targeted tax area, or a local military base realignment area for the production or generation of renewable energy. (c) 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 the four succeeding years if necessary, until the credit is exhausted. (d) This section shall remain in effect only until December 1, 2016, and as of that date is repealed. SEC. 4. Section 23671 is added to the Revenue and Taxation Code, to read: 23671. (a) For each taxable year beginning on or after January 1, 2009, and before January 1, 2016, there shall be allowed as a credit against the "tax," as defined by Section 23036, an amount equal to the sales and use tax paid or incurred during the taxable year by the taxpayer for the taxpayer's purchase of qualified property. (b) For purposes of this section, "qualified property" means any property used in an enterprise zone, targeted tax area, or a local military base realignment area for the production or generation of renewable energy. (c) 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 the four succeeding years if necessary, until the credit is exhausted. (d) This section shall remain in effect only until December 1, 2016, and as of that date is repealed. SEC. 5. This act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect.