California Assembly Bill AB2589 Latest Draft

 BILL NUMBER: AB 2589AMENDED BILL TEXT AMENDED IN ASSEMBLY APRIL 8, 2010 INTRODUCED BY Assembly Member Tran FEBRUARY 19, 2010  An act to amend Section 43511 of the Revenue and Taxation Code, relating to taxation.   An act to add and repeal Sections 17053.64 and 23661 of the Revenue and Taxation Code, relating to taxation, to take effect immediately   , tax levy.  LEGISLATIVE COUNSEL'S DIGEST AB 2589, as amended, Tran.  Hazardous Substances Tax Law.   Income taxes: renewable energy credits.   The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.   This bill would, until January 1, 2016, allow a credit, under both laws, to qualified producers in the amount of $0.018 per kilowatthour produced by dual renewable energy devices, as provided.   This bill would, upon the appropriation of the Legislature, transfer amounts necessary to refund that credit from the General Fund to the Treasurer for the purpose of making those refunds.   This bill would take effect immediately as a tax levy.   The existing California Taxpayers' Bill of Rights, which is administered by the State Board of Equalization, governs the assessment, audit, and collection of taxes under, among other acts, the Hazardous Substances Tax Law.   This bill would make a technical nonsubstantive change to that provision.  Vote: majority. Appropriation: no. Fiscal committee:  no  yes  . State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:  SECTION. 1.   Section 17053.64 is added to the   Revenue and Taxation Code   , to read:   17053.64. (a) For each taxable year beginning on or after January 1, 2011, there shall be allowed a credit against the "net tax," as defined by Section 17039, an amount equal to one and eight-tenths cents ($0.018) per kilowatthour (KWh) produced by a dual renewable energy device during the taxable year by a qualified producer at a facility located in this state or within three miles off the shore of this state. (b) For purposes of this section: (1) "Dual renewable energy device" means a device that utilizes two different renewable energy generating technologies in the same device where neither renewable generating technology produces less than 20 percent of the total energy production by the device. (2) "Facility" as defined in subdivision (b) of the Section 25741 of the Public Resources Code. (3) (A) "Qualified producer" means any taxpayer who owns a facility and who is engaged in the production of electricity using dual renewable energy devices. (B) In the case of any passthrough entity, the determination of whether a taxpayer is a qualified producer under this section shall be made at the entity level and any credit under this section or Section 23661 shall be allowed to the passthrough entity and passed through to the partners or shareholders in accordance with applicable provisions of this part or Part 11(commencing with Section 23001). For purposes of this paragraph, "passthrough entity" means any partnership, limited liability company, or "S" corporation. (c) Not later than 25 days after the end of each calendar quarter, a qualified producer shall submit any information that the Franchise Tax Board or the Treasurer requires to the Franchise Tax Board to substantiate the total amount of kilowatthours produced. (d) In the case where the credit allowed by this section exceeds the taxpayer's liability computed under this part, the excess shall be credited against other amounts due, if any, from the qualified producer and the balance, if any, shall be refunded to the qualified producer on an annual basis. (e) The Franchise Tax Board shall submit an annual list of qualified producers that are eligible to receive a refund under this section, to the Treasurer, in a form agreed upon by the Franchise Tax Board and the Treasurer. (f) Upon appropriation by the Legislature the amounts that are determined by the Treasurer to be necessary to make the refunds required by subdivision (e) shall be transferred to the Treasurer for the purpose of making those refunds. (g) This section shall remain in effect only until January 1, 2016, and as of that date is repealed.   SEC. 2.   Section 23661 is added to the   Revenue and Taxation Code   , to read:  23661. (a) For each taxable year beginning on or after January 1, 2011, there shall be allowed a credit against the "tax," as defined by Section 23036, an amount equal to one and eight-tenths cents ($0.018) per kilowatthour (KWh) produced by a dual renewable energy device during the taxable year by a qualified producer at a facility located in this state or within three miles off the shore of this state. (b) For purposes of this section: (1) "Dual renewable energy device" means a device that utilizes two different renewable energy generating technologies in the same device where neither renewable generating technology produces less than 20 percent of the total energy production by the device. (2) "Facility" as defined in subdivision (b) of the Section 25741 of the Public Resources Code. (3) (A) "Qualified producer" means any taxpayer who owns a facility and who is engaged in the production of electricity using dual renewable energy devices. (B) In the case of any passthrough entity, the determination of whether a taxpayer is a qualified producer under this section shall be made at the entity level and any credit under this section or Section 17053.64 shall be allowed to the passthrough entity and passed through to the partners or shareholders in accordance with applicable provisions of this part or Part 10 (commencing with Section 17001). For purposes of this paragraph, "passthrough entity" means any partnership, limited liability company, or "S" corporation. (c) Not later than 25 days after the end of each calendar quarter, a qualified producer shall submit any information that the Franchise Tax Board or the Treasurer requires to the Franchise Tax Board to substantiate the total amount of kilowatthours produced. (d) In the case where the credit allowed by this section exceeds the taxpayer's liability computed under this part, the excess shall be credited against other amounts due, if any, from the qualified producer and the balance, if any, shall be refunded to the qualified producer on an annual basis. (e) The Franchise Tax Board shall submit an annual list of qualified producers that are eligible to receive a refund under this section, to the Treasurer, in a form agreed upon by the Franchise Tax Board and the Treasurer. (f) Upon appropriation by the Legislature the amounts that are determined by the Treasurer to be necessary to make the refunds required by subdivision (e) shall be transferred to the Treasurer for the purpose of making those refunds. (g) This section shall remain in effect only until January 1, 2016, 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.   SECTION 1.   Section 43511 of the Revenue and Taxation Code is amended to read: 43511. (a) The board shall administer this article. (b) Unless the context indicates otherwise, the provisions of this article shall apply to this part.