California Assembly Bill AB363 Latest Draft

 BILL NUMBER: AB 363AMENDED BILL TEXT AMENDED IN ASSEMBLY MAY 11, 2009 INTRODUCED BY Assembly Member Miller  (   Coauthor:   Assembly Member   Jeffries   )  FEBRUARY 23, 2009 An act to add Sections 17053.87 and 23687 to the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGEST AB 363, as amended, Miller. Income and corporation taxes: credits: fire safety compliance. The Personal Income Tax Law and the Corporation Tax Law authorize various credits against the taxes imposed by those laws. This bill would, under both laws, for taxable years beginning on or after January 1, 2009, allow a credit  for   equal to 50% of the  costs incurred  in   towards  bringing a qualified home, as defined, into compliance with specified fire safety requirements.  The bill would require construction, repair, rehabilitation, or   improvement subject to the credit to be verified by a local building inspector to be construction, repair, rehabilitation, or improvement made toward compliance with the regulations of the   Department of Forestry and Fire Protection.   The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.   This bill would provide that, if the Commission on State Mandates determines that the bill contains costs mandated by the state, reimbursement for those costs shall be made pursuant to these statutory provisions.  This bill would take effect immediately as a tax levy. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program:  no   yes  . THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 17053.87 is added to the Revenue and Taxation Code, to read: 17053.87. (a) For each taxable year beginning on or after January 1, 2009, there shall be allowed as a credit against the "net tax," as defined by Section 17039, an amount equal to  50 percent of  the qualified costs for the taxable year in which a qualified home is brought into compliance with the fire hazard severity zone, local agency very-high fire hazard severity zone, or wildland-urban interface fire area building requirements.  (b) The credit allowed under this section shall be in lieu of any other credit or deduction against the "net tax" allowed by any other provision of law for qualified costs.   (b)   (c)  For purposes of this section:  (1) "Fire hazard severity zone" means a geographical area designated a fire hazard severity zone by the Director of Forestry and Fire Protection pursuant to Section 4203 of the Public Resources Code.   (2) "Local agency-very high fire hazard severity zone" means an area designated as a "very high fire hazard severity zone" by the Director of Forestry and Fire Protection pursuant to Section 51178 of the Government Code that is not a state responsibility area.   (3) "New building" means any building for which a building permit is submitted on or after July 1, 2008.   (1)   (4)  "Qualified costs" means costs paid or incurred by a taxpayer for the construction, repair,  maintenance,  rehabilitation, or improvement of a qualified home  in order to bring   made toward bringing  the qualified home into compliance with the fire safety requirements imposed on new buildings in fire hazard severity zones, local agency very-high fire hazard severity zones, or wildland-urban interface fire areas.  Construction, repair, rehabilitation, or improvement shall, upon completion, be verified by a local building inspector to be construction, repair, rehabilitation, or improvement made toward compliance with the regulations of the Department of Forestry and Fire Protection.  "Qualified costs" includes, but is not limited to, costs for materials and labor.  (2)  (5)  "Qualified home" means a  dwelling unit   single-family, primary residence  located in a fire hazard severity zone, local agency very-high fire hazard severity zone, or wildland-urban interface fire area that is not a new building subject to the fire safety requirements for buildings located in a fire hazard severity zone, local agency very-high fire hazard severity zone, or wildland-urban interface fire area.  (6) "Wildland-urban interface fire area" means a geographical area designated a fire hazard severity zone by the Director of Forestry and Fire Protection pursuant to Section 4203 of the Public Resources Code.   (c)   (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  up to three  succeeding years if necessary, until the credit is exhausted. SEC. 2. Section 23687 is added to the Revenue and Taxation Code, to read: 23687. (a) For each taxable year beginning on or after January 1, 2009, there shall be allowed as a credit against the "tax," as defined by Section 23036, to a taxpayer an amount equal to  50 percent of  the qualified costs for the taxable year in which a qualified home is brought into compliance with the fire hazard severity zone, local agency very-high fire hazard severity zone, or wildland-urban interface fire area building requirements.  (b) The credit allowed under this section shall be in lieu of any other credit or deduction against the "tax" allowed by any other provision of law for qualified costs.   (b)   (c)  For purposes of this section:  (1) "Fire hazard severity zone" means a geographical area designated a fire hazard severity zone by the Director of Forestry and Fire Protection pursuant to Section 4203 of the Public Resources Code.   (2) "Local agency-very high fire hazard severity zone" means an area designated as a "very high fire hazard severity zone" by the Director of Forestry and Fire Protection pursuant to Section 51178 of the Government Code that is not a state responsibility area.   (3) "New building" means any building for which a building permit is submitted on or after July 1, 2008.  (1)   (4)  "Qualified costs" means costs paid or incurred by a taxpayer for the construction, repair,  maintenance,  rehabilitation, or improvement of a qualified home  in order to bring   made toward bringing  the qualified home into compliance with the fire safety requirements imposed on new buildings in fire hazard severity zones, local agency very-high fire hazard severity zones, or wildland-urban interface fire areas.  Construction, repair, rehabilitation, or improvement shall, upon its completion, be verified by a local building inspector to be construction, repair, rehabilitation, or improvements made toward compliance with the regulations of the Department of Forestry and Fire Protection.  "Qualified costs" includes, but is not limited to, costs for materials and labor.  (2)   (5)  "Qualified home" means a  dwelling unit   single-family, primary residence  located in a fire hazard severity zone, local agency very-high fire hazard severity zone, or wildland-urban interface fire area that is not a new building subject to the fire safety requirements for buildings located in a fire hazard severity zone, local agency very-high fire hazard severity zone, or wildland-urban interface fire area.  (6) "Wildland-urban interface fire area" means a geographical area designated a fire hazard severity zone by the Director of Forestry and Fire Protection pursuant to Section 4203 of the Public Resources Code.   (c)   (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  up to three  succeeding years if necessary, until the credit is exhausted.  SEC. 3.   If the Commission on State Mandates determines that this act contains costs mandated by the state, reimbursement to local agencies and school districts for those costs shall be made pursuant to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of the Government Code.   SEC. 3.   SEC. 4.  This act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect.