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| 1 | + | Amended IN Assembly March 13, 2023 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 582Introduced by Assembly Member ConnollyFebruary 09, 2023 An act to add and repeal Section 17053 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTAB 582, as amended, Connolly. Personal Income Tax: tax credits: fire-resistant home improvements. The Personal Income Tax Law allows various credits against the taxes imposed by that law. This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2023, and before January 1, 2028, to a qualified taxpayer, as defined, in an amount equal to 40% of the taxpayers qualified expenses, as defined, not to exceed $____ $400 per taxable year, or $____ $2,000 cumulatively. Existing law requires any bill authorizing a new tax credit to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements.The bill would also include additional information required for any bill authorizing a new tax expenditure.This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 17053 is added to the Revenue and Taxation Code, to read:17053. (a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed to a qualified taxpayer a credit against the net tax, as defined in Section 17039, for in an amount equal to 40 percent of the taxpayers qualified expenses not to exceed ____ dollars ($____). expenses, subject to subdivision (c).(b) For purposes of this section, the following definitions apply:(1) Qualified expenses means costs paid or incurred by a qualified taxpayer associated with home hardening, as that term is defined in Section 4291.5 of the Public Resources Code, the creation of defensible space, and other appropriate fuel reduction activities related to the taxpayers real property. any of the following:(A) The clearing of vegetation, debris, mulch, stored combustible materials, and any and all movable combustible objects within the boundaries of the property.(B) The incorporation of noncombustible materials into any improvements to the property, including fences and gates.(C) The removal of combustible structures, including sheds and other outbuildings, on the property.(D) The building or installation of hardening measures, including, but not limited to, the following:(i) A Class A fire rated roof.(ii) Enclosed eaves.(iii) Fire-resistant vents.(iv) At least six inches of noncombustible vertical clearance at the bottom of the exterior surface of a building on the property, measured from the ground up.(2) Qualified taxpayer means an individual that is at least 65 years of age as of the last day of the taxable year, and whose primary residence is located in a high or very high fire hazard severity zone, as identified by the State Fire Marshal pursuant to Section 51178 of the Government Code, and who satisfies either of the following:(A) For spouses filing joint returns, heads of household, and surviving spouses, as defined in Section 17046, adjusted gross income is two hundred fifty thousand dollars ($250,000) or less.(B) For other individuals, adjusted gross income is one hundred twenty-five thousand dollars ($125,000) or less.(c) Notwithstanding subdivision (a), credits allowed to a qualified taxpayer may pursuant to this section shall not exceed four hundred dollars ($400) in a taxable year, or a cumulative total of ____ dollars ($____) two thousand dollars ($2,000) without regard to taxable year.(d) If the credit allowed by this section exceeds either the annual four-hundred-dollar ($400) limit described in subdivision (c) or the net tax, the excess may be carried over to reduce the net tax in the following year, and succeeding two three years if necessary, until the credit is exhausted.(e) (1) For the purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares all of the following:(A) The specific goal, purpose, and objective that the credit allowed by subdivision (a) will achieve is to compensate adults 65 years of age and older who live in high-risk fire areas for improvements made to mitigate and prevent property damage and loss of life due to wildfires in California.(B) Detailed performance indicators for the Legislature to use in determining whether the credit meets the goal, purpose, and objective described in subparagraph (A) is the number of taxpayers who utilized the credit and the average dollar amount of credits claimed.(2) The Franchise Tax Board shall analyze the performance indicators for each taxable year and shall report its findings on or before November 1, 2028, to the Legislature in compliance with Section 9795 of the Government Code.(3) The disclosure provisions of this subdivision shall be treated as an exception to Section 19542.(f) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 2 | 2 | ||
| 3 | - | ||
| 3 | + | Amended IN Assembly March 13, 2023 CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION Assembly Bill No. 582Introduced by Assembly Member ConnollyFebruary 09, 2023 An act to add and repeal Section 17053 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGESTAB 582, as amended, Connolly. Personal Income Tax: tax credits: fire-resistant home improvements. The Personal Income Tax Law allows various credits against the taxes imposed by that law. This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2023, and before January 1, 2028, to a qualified taxpayer, as defined, in an amount equal to 40% of the taxpayers qualified expenses, as defined, not to exceed $____ $400 per taxable year, or $____ $2,000 cumulatively. Existing law requires any bill authorizing a new tax credit to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements.The bill would also include additional information required for any bill authorizing a new tax expenditure.This bill would take effect immediately as a tax levy.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO | |
| 4 | 4 | ||
| 5 | - | ||
| 5 | + | Amended IN Assembly March 13, 2023 | |
| 6 | 6 | ||
| 7 | - | Amended IN Assembly April 24, 2023 | |
| 8 | 7 | Amended IN Assembly March 13, 2023 | |
| 9 | 8 | ||
| 10 | 9 | CALIFORNIA LEGISLATURE 20232024 REGULAR SESSION | |
| 11 | 10 | ||
| 12 | 11 | Assembly Bill | |
| 13 | 12 | ||
| 14 | 13 | No. 582 | |
| 15 | 14 | ||
| 16 | 15 | Introduced by Assembly Member ConnollyFebruary 09, 2023 | |
| 17 | 16 | ||
| 18 | 17 | Introduced by Assembly Member Connolly | |
| 19 | 18 | February 09, 2023 | |
| 20 | 19 | ||
| 21 | 20 | An act to add and repeal Section 17053 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. | |
| 22 | 21 | ||
| 23 | 22 | LEGISLATIVE COUNSEL'S DIGEST | |
| 24 | 23 | ||
| 25 | 24 | ## LEGISLATIVE COUNSEL'S DIGEST | |
| 26 | 25 | ||
| 27 | 26 | AB 582, as amended, Connolly. Personal Income Tax: tax credits: fire-resistant home improvements. | |
| 28 | 27 | ||
| 29 | - | The Personal Income Tax Law allows various credits against the taxes imposed by that law. This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2023, | |
| 28 | + | The Personal Income Tax Law allows various credits against the taxes imposed by that law. This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2023, and before January 1, 2028, to a qualified taxpayer, as defined, in an amount equal to 40% of the taxpayers qualified expenses, as defined, not to exceed $____ $400 per taxable year, or $____ $2,000 cumulatively. Existing law requires any bill authorizing a new tax credit to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements.The bill would also include additional information required for any bill authorizing a new tax expenditure.This bill would take effect immediately as a tax levy. | |
| 30 | 29 | ||
| 31 | 30 | The Personal Income Tax Law allows various credits against the taxes imposed by that law. | |
| 32 | 31 | ||
| 33 | - | This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2023, | |
| 32 | + | This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2023, and before January 1, 2028, to a qualified taxpayer, as defined, in an amount equal to 40% of the taxpayers qualified expenses, as defined, not to exceed $____ $400 per taxable year, or $____ $2,000 cumulatively. | |
| 34 | 33 | ||
| 35 | 34 | Existing law requires any bill authorizing a new tax credit to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements. | |
| 36 | 35 | ||
| 37 | 36 | The bill would also include additional information required for any bill authorizing a new tax expenditure. | |
| 38 | 37 | ||
| 39 | 38 | This bill would take effect immediately as a tax levy. | |
| 40 | 39 | ||
| 41 | 40 | ## Digest Key | |
| 42 | 41 | ||
| 43 | 42 | ## Bill Text | |
| 44 | 43 | ||
| 45 | - | The people of the State of California do enact as follows:SECTION 1. Section 17053 is added to the Revenue and Taxation Code, to read:17053. (a) For each taxable year beginning on or after January 1, 2023, | |
| 44 | + | The people of the State of California do enact as follows:SECTION 1. Section 17053 is added to the Revenue and Taxation Code, to read:17053. (a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed to a qualified taxpayer a credit against the net tax, as defined in Section 17039, for in an amount equal to 40 percent of the taxpayers qualified expenses not to exceed ____ dollars ($____). expenses, subject to subdivision (c).(b) For purposes of this section, the following definitions apply:(1) Qualified expenses means costs paid or incurred by a qualified taxpayer associated with home hardening, as that term is defined in Section 4291.5 of the Public Resources Code, the creation of defensible space, and other appropriate fuel reduction activities related to the taxpayers real property. any of the following:(A) The clearing of vegetation, debris, mulch, stored combustible materials, and any and all movable combustible objects within the boundaries of the property.(B) The incorporation of noncombustible materials into any improvements to the property, including fences and gates.(C) The removal of combustible structures, including sheds and other outbuildings, on the property.(D) The building or installation of hardening measures, including, but not limited to, the following:(i) A Class A fire rated roof.(ii) Enclosed eaves.(iii) Fire-resistant vents.(iv) At least six inches of noncombustible vertical clearance at the bottom of the exterior surface of a building on the property, measured from the ground up.(2) Qualified taxpayer means an individual that is at least 65 years of age as of the last day of the taxable year, and whose primary residence is located in a high or very high fire hazard severity zone, as identified by the State Fire Marshal pursuant to Section 51178 of the Government Code, and who satisfies either of the following:(A) For spouses filing joint returns, heads of household, and surviving spouses, as defined in Section 17046, adjusted gross income is two hundred fifty thousand dollars ($250,000) or less.(B) For other individuals, adjusted gross income is one hundred twenty-five thousand dollars ($125,000) or less.(c) Notwithstanding subdivision (a), credits allowed to a qualified taxpayer may pursuant to this section shall not exceed four hundred dollars ($400) in a taxable year, or a cumulative total of ____ dollars ($____) two thousand dollars ($2,000) without regard to taxable year.(d) If the credit allowed by this section exceeds either the annual four-hundred-dollar ($400) limit described in subdivision (c) or the net tax, the excess may be carried over to reduce the net tax in the following year, and succeeding two three years if necessary, until the credit is exhausted.(e) (1) For the purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares all of the following:(A) The specific goal, purpose, and objective that the credit allowed by subdivision (a) will achieve is to compensate adults 65 years of age and older who live in high-risk fire areas for improvements made to mitigate and prevent property damage and loss of life due to wildfires in California.(B) Detailed performance indicators for the Legislature to use in determining whether the credit meets the goal, purpose, and objective described in subparagraph (A) is the number of taxpayers who utilized the credit and the average dollar amount of credits claimed.(2) The Franchise Tax Board shall analyze the performance indicators for each taxable year and shall report its findings on or before November 1, 2028, to the Legislature in compliance with Section 9795 of the Government Code.(3) The disclosure provisions of this subdivision shall be treated as an exception to Section 19542.(f) This section shall remain in effect only until December 1, 2028, and as of that date is repealed.SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 46 | 45 | ||
| 47 | 46 | The people of the State of California do enact as follows: | |
| 48 | 47 | ||
| 49 | 48 | ## The people of the State of California do enact as follows: | |
| 50 | 49 | ||
| 51 | - | SECTION 1. Section 17053 is added to the Revenue and Taxation Code, to read:17053. (a) For each taxable year beginning on or after January 1, 2023, | |
| 50 | + | SECTION 1. Section 17053 is added to the Revenue and Taxation Code, to read:17053. (a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed to a qualified taxpayer a credit against the net tax, as defined in Section 17039, for in an amount equal to 40 percent of the taxpayers qualified expenses not to exceed ____ dollars ($____). expenses, subject to subdivision (c).(b) For purposes of this section, the following definitions apply:(1) Qualified expenses means costs paid or incurred by a qualified taxpayer associated with home hardening, as that term is defined in Section 4291.5 of the Public Resources Code, the creation of defensible space, and other appropriate fuel reduction activities related to the taxpayers real property. any of the following:(A) The clearing of vegetation, debris, mulch, stored combustible materials, and any and all movable combustible objects within the boundaries of the property.(B) The incorporation of noncombustible materials into any improvements to the property, including fences and gates.(C) The removal of combustible structures, including sheds and other outbuildings, on the property.(D) The building or installation of hardening measures, including, but not limited to, the following:(i) A Class A fire rated roof.(ii) Enclosed eaves.(iii) Fire-resistant vents.(iv) At least six inches of noncombustible vertical clearance at the bottom of the exterior surface of a building on the property, measured from the ground up.(2) Qualified taxpayer means an individual that is at least 65 years of age as of the last day of the taxable year, and whose primary residence is located in a high or very high fire hazard severity zone, as identified by the State Fire Marshal pursuant to Section 51178 of the Government Code, and who satisfies either of the following:(A) For spouses filing joint returns, heads of household, and surviving spouses, as defined in Section 17046, adjusted gross income is two hundred fifty thousand dollars ($250,000) or less.(B) For other individuals, adjusted gross income is one hundred twenty-five thousand dollars ($125,000) or less.(c) Notwithstanding subdivision (a), credits allowed to a qualified taxpayer may pursuant to this section shall not exceed four hundred dollars ($400) in a taxable year, or a cumulative total of ____ dollars ($____) two thousand dollars ($2,000) without regard to taxable year.(d) If the credit allowed by this section exceeds either the annual four-hundred-dollar ($400) limit described in subdivision (c) or the net tax, the excess may be carried over to reduce the net tax in the following year, and succeeding two three years if necessary, until the credit is exhausted.(e) (1) For the purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares all of the following:(A) The specific goal, purpose, and objective that the credit allowed by subdivision (a) will achieve is to compensate adults 65 years of age and older who live in high-risk fire areas for improvements made to mitigate and prevent property damage and loss of life due to wildfires in California.(B) Detailed performance indicators for the Legislature to use in determining whether the credit meets the goal, purpose, and objective described in subparagraph (A) is the number of taxpayers who utilized the credit and the average dollar amount of credits claimed.(2) The Franchise Tax Board shall analyze the performance indicators for each taxable year and shall report its findings on or before November 1, 2028, to the Legislature in compliance with Section 9795 of the Government Code.(3) The disclosure provisions of this subdivision shall be treated as an exception to Section 19542.(f) This section shall remain in effect only until December 1, 2028, and as of that date is repealed. | |
| 52 | 51 | ||
| 53 | 52 | SECTION 1. Section 17053 is added to the Revenue and Taxation Code, to read: | |
| 54 | 53 | ||
| 55 | 54 | ### SECTION 1. | |
| 56 | 55 | ||
| 57 | - | 17053. (a) For each taxable year beginning on or after January 1, 2023, | |
| 56 | + | 17053. (a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed to a qualified taxpayer a credit against the net tax, as defined in Section 17039, for in an amount equal to 40 percent of the taxpayers qualified expenses not to exceed ____ dollars ($____). expenses, subject to subdivision (c).(b) For purposes of this section, the following definitions apply:(1) Qualified expenses means costs paid or incurred by a qualified taxpayer associated with home hardening, as that term is defined in Section 4291.5 of the Public Resources Code, the creation of defensible space, and other appropriate fuel reduction activities related to the taxpayers real property. any of the following:(A) The clearing of vegetation, debris, mulch, stored combustible materials, and any and all movable combustible objects within the boundaries of the property.(B) The incorporation of noncombustible materials into any improvements to the property, including fences and gates.(C) The removal of combustible structures, including sheds and other outbuildings, on the property.(D) The building or installation of hardening measures, including, but not limited to, the following:(i) A Class A fire rated roof.(ii) Enclosed eaves.(iii) Fire-resistant vents.(iv) At least six inches of noncombustible vertical clearance at the bottom of the exterior surface of a building on the property, measured from the ground up.(2) Qualified taxpayer means an individual that is at least 65 years of age as of the last day of the taxable year, and whose primary residence is located in a high or very high fire hazard severity zone, as identified by the State Fire Marshal pursuant to Section 51178 of the Government Code, and who satisfies either of the following:(A) For spouses filing joint returns, heads of household, and surviving spouses, as defined in Section 17046, adjusted gross income is two hundred fifty thousand dollars ($250,000) or less.(B) For other individuals, adjusted gross income is one hundred twenty-five thousand dollars ($125,000) or less.(c) Notwithstanding subdivision (a), credits allowed to a qualified taxpayer may pursuant to this section shall not exceed four hundred dollars ($400) in a taxable year, or a cumulative total of ____ dollars ($____) two thousand dollars ($2,000) without regard to taxable year.(d) If the credit allowed by this section exceeds either the annual four-hundred-dollar ($400) limit described in subdivision (c) or the net tax, the excess may be carried over to reduce the net tax in the following year, and succeeding two three years if necessary, until the credit is exhausted.(e) (1) For the purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares all of the following:(A) The specific goal, purpose, and objective that the credit allowed by subdivision (a) will achieve is to compensate adults 65 years of age and older who live in high-risk fire areas for improvements made to mitigate and prevent property damage and loss of life due to wildfires in California.(B) Detailed performance indicators for the Legislature to use in determining whether the credit meets the goal, purpose, and objective described in subparagraph (A) is the number of taxpayers who utilized the credit and the average dollar amount of credits claimed.(2) The Franchise Tax Board shall analyze the performance indicators for each taxable year and shall report its findings on or before November 1, 2028, to the Legislature in compliance with Section 9795 of the Government Code.(3) The disclosure provisions of this subdivision shall be treated as an exception to Section 19542.(f) This section shall remain in effect only until December 1, 2028, and as of that date is repealed. | |
| 58 | 57 | ||
| 59 | - | 17053. (a) For each taxable year beginning on or after January 1, 2023, | |
| 58 | + | 17053. (a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed to a qualified taxpayer a credit against the net tax, as defined in Section 17039, for in an amount equal to 40 percent of the taxpayers qualified expenses not to exceed ____ dollars ($____). expenses, subject to subdivision (c).(b) For purposes of this section, the following definitions apply:(1) Qualified expenses means costs paid or incurred by a qualified taxpayer associated with home hardening, as that term is defined in Section 4291.5 of the Public Resources Code, the creation of defensible space, and other appropriate fuel reduction activities related to the taxpayers real property. any of the following:(A) The clearing of vegetation, debris, mulch, stored combustible materials, and any and all movable combustible objects within the boundaries of the property.(B) The incorporation of noncombustible materials into any improvements to the property, including fences and gates.(C) The removal of combustible structures, including sheds and other outbuildings, on the property.(D) The building or installation of hardening measures, including, but not limited to, the following:(i) A Class A fire rated roof.(ii) Enclosed eaves.(iii) Fire-resistant vents.(iv) At least six inches of noncombustible vertical clearance at the bottom of the exterior surface of a building on the property, measured from the ground up.(2) Qualified taxpayer means an individual that is at least 65 years of age as of the last day of the taxable year, and whose primary residence is located in a high or very high fire hazard severity zone, as identified by the State Fire Marshal pursuant to Section 51178 of the Government Code, and who satisfies either of the following:(A) For spouses filing joint returns, heads of household, and surviving spouses, as defined in Section 17046, adjusted gross income is two hundred fifty thousand dollars ($250,000) or less.(B) For other individuals, adjusted gross income is one hundred twenty-five thousand dollars ($125,000) or less.(c) Notwithstanding subdivision (a), credits allowed to a qualified taxpayer may pursuant to this section shall not exceed four hundred dollars ($400) in a taxable year, or a cumulative total of ____ dollars ($____) two thousand dollars ($2,000) without regard to taxable year.(d) If the credit allowed by this section exceeds either the annual four-hundred-dollar ($400) limit described in subdivision (c) or the net tax, the excess may be carried over to reduce the net tax in the following year, and succeeding two three years if necessary, until the credit is exhausted.(e) (1) For the purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares all of the following:(A) The specific goal, purpose, and objective that the credit allowed by subdivision (a) will achieve is to compensate adults 65 years of age and older who live in high-risk fire areas for improvements made to mitigate and prevent property damage and loss of life due to wildfires in California.(B) Detailed performance indicators for the Legislature to use in determining whether the credit meets the goal, purpose, and objective described in subparagraph (A) is the number of taxpayers who utilized the credit and the average dollar amount of credits claimed.(2) The Franchise Tax Board shall analyze the performance indicators for each taxable year and shall report its findings on or before November 1, 2028, to the Legislature in compliance with Section 9795 of the Government Code.(3) The disclosure provisions of this subdivision shall be treated as an exception to Section 19542.(f) This section shall remain in effect only until December 1, 2028, and as of that date is repealed. | |
| 60 | 59 | ||
| 61 | - | 17053. (a) For each taxable year beginning on or after January 1, 2023, | |
| 60 | + | 17053. (a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed to a qualified taxpayer a credit against the net tax, as defined in Section 17039, for in an amount equal to 40 percent of the taxpayers qualified expenses not to exceed ____ dollars ($____). expenses, subject to subdivision (c).(b) For purposes of this section, the following definitions apply:(1) Qualified expenses means costs paid or incurred by a qualified taxpayer associated with home hardening, as that term is defined in Section 4291.5 of the Public Resources Code, the creation of defensible space, and other appropriate fuel reduction activities related to the taxpayers real property. any of the following:(A) The clearing of vegetation, debris, mulch, stored combustible materials, and any and all movable combustible objects within the boundaries of the property.(B) The incorporation of noncombustible materials into any improvements to the property, including fences and gates.(C) The removal of combustible structures, including sheds and other outbuildings, on the property.(D) The building or installation of hardening measures, including, but not limited to, the following:(i) A Class A fire rated roof.(ii) Enclosed eaves.(iii) Fire-resistant vents.(iv) At least six inches of noncombustible vertical clearance at the bottom of the exterior surface of a building on the property, measured from the ground up.(2) Qualified taxpayer means an individual that is at least 65 years of age as of the last day of the taxable year, and whose primary residence is located in a high or very high fire hazard severity zone, as identified by the State Fire Marshal pursuant to Section 51178 of the Government Code, and who satisfies either of the following:(A) For spouses filing joint returns, heads of household, and surviving spouses, as defined in Section 17046, adjusted gross income is two hundred fifty thousand dollars ($250,000) or less.(B) For other individuals, adjusted gross income is one hundred twenty-five thousand dollars ($125,000) or less.(c) Notwithstanding subdivision (a), credits allowed to a qualified taxpayer may pursuant to this section shall not exceed four hundred dollars ($400) in a taxable year, or a cumulative total of ____ dollars ($____) two thousand dollars ($2,000) without regard to taxable year.(d) If the credit allowed by this section exceeds either the annual four-hundred-dollar ($400) limit described in subdivision (c) or the net tax, the excess may be carried over to reduce the net tax in the following year, and succeeding two three years if necessary, until the credit is exhausted.(e) (1) For the purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares all of the following:(A) The specific goal, purpose, and objective that the credit allowed by subdivision (a) will achieve is to compensate adults 65 years of age and older who live in high-risk fire areas for improvements made to mitigate and prevent property damage and loss of life due to wildfires in California.(B) Detailed performance indicators for the Legislature to use in determining whether the credit meets the goal, purpose, and objective described in subparagraph (A) is the number of taxpayers who utilized the credit and the average dollar amount of credits claimed.(2) The Franchise Tax Board shall analyze the performance indicators for each taxable year and shall report its findings on or before November 1, 2028, to the Legislature in compliance with Section 9795 of the Government Code.(3) The disclosure provisions of this subdivision shall be treated as an exception to Section 19542.(f) This section shall remain in effect only until December 1, 2028, and as of that date is repealed. | |
| 62 | 61 | ||
| 63 | 62 | ||
| 64 | 63 | ||
| 65 | - | 17053. (a) For each taxable year beginning on or after January 1, 2023, | |
| 64 | + | 17053. (a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2028, there shall be allowed to a qualified taxpayer a credit against the net tax, as defined in Section 17039, for in an amount equal to 40 percent of the taxpayers qualified expenses not to exceed ____ dollars ($____). expenses, subject to subdivision (c). | |
| 66 | 65 | ||
| 67 | 66 | (b) For purposes of this section, the following definitions apply: | |
| 68 | 67 | ||
| 69 | - | (1) Qualified expenses means costs paid or incurred by a qualified taxpayer associated with any of the following: | |
| 68 | + | (1) Qualified expenses means costs paid or incurred by a qualified taxpayer associated with home hardening, as that term is defined in Section 4291.5 of the Public Resources Code, the creation of defensible space, and other appropriate fuel reduction activities related to the taxpayers real property. any of the following: | |
| 70 | 69 | ||
| 71 | 70 | (A) The clearing of vegetation, debris, mulch, stored combustible materials, and any and all movable combustible objects within the boundaries of the property. | |
| 72 | 71 | ||
| 73 | - | ||
| 74 | - | ||
| 75 | 72 | (B) The incorporation of noncombustible materials into any improvements to the property, including fences and gates. | |
| 76 | - | ||
| 77 | - | ||
| 78 | 73 | ||
| 79 | 74 | (C) The removal of combustible structures, including sheds and other outbuildings, on the property. | |
| 80 | 75 | ||
| 81 | - | ||
| 82 | - | ||
| 83 | 76 | (D) The building or installation of hardening measures, including, but not limited to, the following: | |
| 84 | 77 | ||
| 78 | + | (i) A Class A fire rated roof. | |
| 85 | 79 | ||
| 80 | + | (ii) Enclosed eaves. | |
| 86 | 81 | ||
| 87 | - | ( | |
| 82 | + | (iii) Fire-resistant vents. | |
| 88 | 83 | ||
| 84 | + | (iv) At least six inches of noncombustible vertical clearance at the bottom of the exterior surface of a building on the property, measured from the ground up. | |
| 89 | 85 | ||
| 90 | - | ||
| 91 | - | (A) A Class A fire rated roof. | |
| 92 | - | ||
| 93 | - | (ii) | |
| 94 | - | ||
| 95 | - | ||
| 96 | - | ||
| 97 | - | (B) Enclosed eaves. | |
| 98 | - | ||
| 99 | - | (iii) | |
| 100 | - | ||
| 101 | - | ||
| 102 | - | ||
| 103 | - | (C) Fire-resistant vents. | |
| 104 | - | ||
| 105 | - | (iv) | |
| 106 | - | ||
| 107 | - | ||
| 108 | - | ||
| 109 | - | (D) At least six inches of noncombustible vertical clearance at the bottom of the exterior surface of a building on the property, measured from the ground up. | |
| 110 | - | ||
| 111 | - | (2) Qualified taxpayer means an individual that is at least 65 years of age as of the last day of the taxable year, whose primary residence residence, for any taxable years in which the taxpayer claims the credit, is located in a high or very high fire hazard severity zone, as identified by the State Fire Marshal pursuant to Section 51178 of the Government Code, and who satisfies either of the following: | |
| 86 | + | (2) Qualified taxpayer means an individual that is at least 65 years of age as of the last day of the taxable year, and whose primary residence is located in a high or very high fire hazard severity zone, as identified by the State Fire Marshal pursuant to Section 51178 of the Government Code, and who satisfies either of the following: | |
| 112 | 87 | ||
| 113 | 88 | (A) For spouses filing joint returns, heads of household, and surviving spouses, as defined in Section 17046, adjusted gross income is two hundred fifty thousand dollars ($250,000) or less. | |
| 114 | 89 | ||
| 115 | 90 | (B) For other individuals, adjusted gross income is one hundred twenty-five thousand dollars ($125,000) or less. | |
| 116 | 91 | ||
| 117 | - | (c) Notwithstanding subdivision (a), credits allowed to a qualified taxpayer pursuant to this section shall not exceed four hundred dollars ($400) in a taxable year, or a cumulative total of two thousand dollars ($2,000) without regard to taxable year. | |
| 92 | + | (c) Notwithstanding subdivision (a), credits allowed to a qualified taxpayer may pursuant to this section shall not exceed four hundred dollars ($400) in a taxable year, or a cumulative total of ____ dollars ($____) two thousand dollars ($2,000) without regard to taxable year. | |
| 118 | 93 | ||
| 119 | - | (d) If the credit allowed by this section exceeds either the annual four-hundred-dollar ($400) limit described in subdivision (c) or the net tax, the excess may be carried over to reduce the net tax in the following year, and succeeding three years if necessary, until the credit is exhausted. | |
| 94 | + | (d) If the credit allowed by this section exceeds either the annual four-hundred-dollar ($400) limit described in subdivision (c) or the net tax, the excess may be carried over to reduce the net tax in the following year, and succeeding two three years if necessary, until the credit is exhausted. | |
| 120 | 95 | ||
| 121 | 96 | (e) (1) For the purposes of complying with Section 41 of the Revenue and Taxation Code, the Legislature finds and declares all of the following: | |
| 122 | 97 | ||
| 123 | 98 | (A) The specific goal, purpose, and objective that the credit allowed by subdivision (a) will achieve is to compensate adults 65 years of age and older who live in high-risk fire areas for improvements made to mitigate and prevent property damage and loss of life due to wildfires in California. | |
| 124 | 99 | ||
| 125 | 100 | (B) Detailed performance indicators for the Legislature to use in determining whether the credit meets the goal, purpose, and objective described in subparagraph (A) is the number of taxpayers who utilized the credit and the average dollar amount of credits claimed. | |
| 126 | 101 | ||
| 127 | - | (2) The Franchise Tax Board shall analyze the performance indicators for each taxable year and shall report its findings on or before November 1, 2028, | |
| 102 | + | (2) The Franchise Tax Board shall analyze the performance indicators for each taxable year and shall report its findings on or before November 1, 2028, to the Legislature in compliance with Section 9795 of the Government Code. | |
| 128 | 103 | ||
| 129 | 104 | (3) The disclosure provisions of this subdivision shall be treated as an exception to Section 19542. | |
| 130 | 105 | ||
| 131 | - | (f) This section shall remain in effect only until December 1, 2028, | |
| 106 | + | (f) This section shall remain in effect only until December 1, 2028, and as of that date is repealed. | |
| 132 | 107 | ||
| 133 | 108 | SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 134 | 109 | ||
| 135 | 110 | SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 136 | 111 | ||
| 137 | 112 | SEC. 2. This act provides for a tax levy within the meaning of Article IV of the California Constitution and shall go into immediate effect. | |
| 138 | 113 | ||
| 139 | 114 | ### SEC. 2. |