California Assembly Bill AB294 Latest Draft

 BILL NUMBER: AB 294AMENDED BILL TEXT AMENDED IN ASSEMBLY APRIL 14, 2009 INTRODUCED BY Assembly Member Anderson FEBRUARY 17, 2009  An act relating to corporations.   An act to add and repeal Sections 17207.6 and 24347.6 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.  LEGISLATIVE COUNSEL'S DIGEST AB 294, as amended, Anderson.  Corporations: penalties.   Income and corporation taxes: deductions: defensible space.   The Personal Income Tax Law and Corporation Tax Law authorize various deductions in computing the income that is subject to the taxes imposed by those laws.   This bill would allow for taxable years beginning on or after January 1, 2009, and before January 1, 2013, a deduction under those laws for the qualified costs paid or incurred during the taxable year by a qualified taxpayer to create a defensible space, as defined, around a qualified property, as defined, by removing all brush, flammable vegetation, and combustible growth within 100 feet of certain structures on that property.   This bill would take effect immediately as a tax levy.   Existing law specifies conduct required of, or prohibited by, a corporation and its officers and directors, and imposes specified penalties for a violation of those requirements.   This bill would declare the intent of the Legislature to amend those provisions.  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 17207.6 is added to the   Revenue and Taxation Code   , to read:   17207.6. (a) For each taxable year beginning on or after January 1, 2009, and before January 1, 2013, there shall be allowed as a deduction an amount equal to the qualified costs paid or incurred by a qualified taxpayer to create a defensible space during the taxable year. The deduction shall not exceed five hundred dollars ($500) for each qualified property. (b) For the purposes of this section, the following definitions shall apply: (1) "Defensible space" means that area created by removing all brush, flammable vegetation, and combustible growth that is located within 100 feet from the structural components of a dwelling located on a qualified property. (2) "Dwelling" has the same meaning as described in Section 704.710 of the Code of Civil Procedure, but does not include a boat or other waterborne vessel. (3) "Fire department" means the local fire department that has jurisdiction over the qualified property. (4) "Licensed contractor" means a contractor with an active license issued by the Contractors' State License Board. (5) "Qualified costs" means 25 percent of the costs paid or incurred by a qualified taxpayer for labor and services performed by a licensed contractor to create a defensible space around a qualified property, which costs are evidenced by records and documents including, but not limited to, a written certification. (6) "Qualified property" means dwelling located in California. (7) "Qualified taxpayer" means taxpayer who owns qualified property. (8) "Written certification" means a written evaluation by the fire department that certifies the establishment of defensible space, provided that the certification shall be obtained within 30 days after completion of the work establishing the defensible space. The taxpayer shall retain a copy of the certification and provide it to the Franchise Tax Board upon request. (c) A deduction shall not be allowed under this section unless a qualified taxpayer provides a written certification upon request to the Franchise Tax Board. (d) Any deduction otherwise allowed under this part for qualified costs shall not be reduced by the amount of the deduction allowed under this section. (e) This section shall remain in effect only until December 1, 2013, and as of that date is repealed.   SEC. 2.   Section 24347.6 is added to the   Revenue and Taxation Code   , to read:   24347.6. (a) For each taxable year beginning on or after January 1, 2009, and before January 1, 2013, there shall be allowed as a deduction an amount equal to the qualified costs paid or incurred by a qualified taxpayer to create a defensible space during the taxable year. The deduction shall not exceed five hundred dollars ($500) for each qualified property. (b) For the purposes of this section, the following definitions shall apply: (1) "Defensible space" means that area created by removing all brush, flammable vegetation, and combustible growth that is located within 100 feet from the structural components of a dwelling located on a qualified property. (2) "Dwelling" has the same meaning as described in Section 704.710 of the Code of Civil Procedure, but does not include a boat or other waterborne vessel. (3) "Fire department" means the local fire department that has jurisdiction over the qualified property. (4) "Licensed contractor" means a contractor with an active license issued by the Contractors' State License Board. (5) "Qualified costs" means 25 percent of the costs paid or incurred by a qualified taxpayer for labor and services performed by a licensed contractor to create a defensible space around a qualified property, which costs are evidenced by records and documents including, but not limited to, a written certification. (6) "Qualified property" means dwelling located in California. (7) "Qualified taxpayer" means taxpayer who owns qualified property. (8) "Written certification" means a written evaluation by the fire department that certifies the establishment of defensible space, provided that the certification shall be obtained within 30 days after completion of the work establishing the defensible space. The taxpayer shall retain a copy of the certification and provide it to the Franchise Tax Board upon request. (c) A deduction shall not be allowed under this section unless a qualified taxpayer provides a written certification upon request to the Franchise Tax Board. (d) Any deduction otherwise allowed under this part for qualified costs shall not be reduced by the amount of the deduction allowed under this section. (e) This section shall remain in effect only until December 1, 2013, 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.  It is the intent of the Legislature to amend Chapter 22 (commencing with Section 2200) of Division 1 of Title 1 of the Corporations Code relating to penalties for failing to comply with specified requirements of the Corporations Code.