Bill Text: CA AB2537 | 2013-2014 | Regular Session | Amended
Bill Title: Income taxes: credits: water-conserving plumbing fixtures.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2014-05-13 - In committee: Set, second hearing. Held under submission. [AB2537 Detail]
Download: California-2013-AB2537-Amended.html
BILL NUMBER: AB 2537 AMENDED
BILL TEXT
AMENDED IN ASSEMBLY APRIL 1, 2014
INTRODUCED BY Assembly Member Grove
FEBRUARY 21, 2014
An act to amend Section 17015 of the Revenue and Taxation
Code, relating to taxation. An act to add Sections
17053.37 and 23637 to the Revenue and Taxation Code, relating to
taxation, to take effect immediately, tax levy.
LEGISLATIVE COUNSEL'S DIGEST
AB 2537, as amended, Grove. Personal income tax.
Income taxes: credits: water-conserving plumbing
fixtures.
The Personal Income Tax Law and the Corporation Tax Law allow
various credits against the taxes imposed by those laws.
This bill, for taxable years beginning on or after January 1,
2014, would allow a credit equal to 25% of the amount paid or
incurred by a qualified taxpayer for the installation of one or more
water-conserving plumbing fixtures to replace a noncompliant plumbing
fixture on qualified real property in this state, as specified. The
bill would provide that the credit would not exceed $2,500 per
taxable year.
This bill would take effect immediately as a tax levy.
The Personal Income Tax Law defines a "nonresident" as every
individual other than a resident.
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. The Legislature finds and declares all
of the following:
(a) There is a pressing need to address water supply reliability
issues raised by growing urban and agricultural areas.
(b) There are many water conservation practices that produce
significant energy and other resource savings that should be
encouraged as a matter of state policy.
(c) California law requires, for all building alterations or
improvements to a single-family residential property, a permit
applicant to replace all noncompliant plumbing fixtures with
water-conserving plumbing fixtures as a condition to be issued a
certificate of final completion and occupancy or final permit
approval by the local building department.
(d) California law also requires, by January 1, 2019, that all
noncompliant plumbing fixtures in multifamily residential real
property and commercial real property be replaced with
water-conserving plumbing fixtures.
(e) In furtherance of the current and ongoing water conservation
efforts throughout the state, it is the intent of this act to provide
financial relief and incentives for qualified taxpayers replacing or
installing water-conserving plumbing fixtures for residential and
commercial real property.
SEC. 2. Section 17053.37 is added to the
Revenue and Taxation Code , to read:
17053.37. (a) For each taxable year beginning on or after January
1, 2014, there shall be allowed as a credit against the "net tax,"
as defined in Section 17039, an amount equal to 25 percent of the
amount paid or incurred during the taxable year by a qualified
taxpayer for the installation of one or more water-conserving
plumbing fixtures by a licensed plumber to replace a noncompliant
plumbing fixture on qualified real property in this state.
(b) The credit under this section shall not exceed two thousand
five hundred dollars ($2,500) per taxable year per qualified
taxpayer.
(c) For the purposes of this section, the following definitions
shall apply:
(1) (A) "Qualified real property" means any of the following:
(i) Commercial real property.
(ii) Multifamily residential real property.
(iii) Single-family residential real property.
(B) "Qualified real property" does not mean any real property for
which water service is permanently disconnected.
(2) "Commercial real property" means any real property that is
improved with, or consisting of, a building that is intended for
commercial use, including hotels and motels, that is not a
single-family residential real property or a multifamily residential
real property.
(3) "Multifamily residential real property" means any real
property that is improved with, or consisting of, a building
containing more than one unit that is intended for human habitation,
or any mixed residential-commercial buildings or portions thereof
that are intended for human habitation. Multifamily residential real
property includes residential hotels but does not include hotels and
motels that are not residential hotels.
(4) "Single-family residential real property" means any real
property that is improved with, or consisting of, a building
containing not more than one unit that is intended for human
habitation.
(5) "Noncompliant plumbing fixture" means any of the following:
(A) Any toilet manufactured to use more than 1.6 gallons of water
per flush.
(B) Any urinal manufactured to use more than one gallon of water
per flush.
(C) Any showerhead manufactured to have a flow capacity of more
than 2.5 gallons of water per minute.
(D) Any interior faucet that emits more than 2.2 gallons of water
per minute.
(6) "Qualified taxpayer" means the owner of any qualified real
property.
(7) "Water-conserving plumbing fixture" means any fixture that is
in compliance with current building standards applicable to a newly
constructed real property of the same type.
(d) The qualified taxpayer shall obtain a certification from a
licensed plumber that the plumber installed a water-conserving
plumbing fixture to replace a noncompliant plumbing fixture on
qualified real property in this state.
SEC. 3. Section 23637 is added to the
Revenue and Taxation Code , to read:
23637. (a) For each taxable year beginning on or after January 1,
2014, there shall be allowed as a credit against the "tax," as
defined in Section 23036, an amount equal to 25 percent of the amount
paid or incurred during the taxable year by a qualified taxpayer for
the installation of one or more water-conserving plumbing fixtures
by a licensed plumber to replace a noncompliant plumbing fixture on
qualified real property in this state.
(b) The credit under this section shall not exceed two thousand
five hundred dollars ($2,500) per taxable year per qualified
taxpayer.
(c) For the purposes of this section, the following definitions
shall apply:
(1) (A) "Qualified real property" means any of the following:
(i) Commercial real property.
(ii) Multifamily residential real property.
(iii) Single-family residential real property.
(B) "Qualified real property" does not mean any real property for
which water service is permanently disconnected.
(2) "Commercial real property" means any real property that is
improved with, or consisting of, a building that is intended for
commercial use, including hotels and motels, that is not a
single-family residential real property or a multifamily residential
real property.
(3) "Multifamily residential real property" means any real
property that is improved with, or consisting of, a building
containing more than one unit that is intended for human habitation,
or any mixed residential-commercial buildings or portions thereof
that are intended for human habitation. Multifamily residential real
property includes residential hotels but does not include hotels and
motels that are not residential hotels.
(4) "Single-family residential real property" means any real
property that is improved with, or consisting of, a building
containing not more than one unit that is intended for human
habitation.
(5) "Noncompliant plumbing fixture" means any of the following:
(A) Any toilet manufactured to use more than 1.6 gallons of water
per flush.
(B) Any urinal manufactured to use more than one gallon of water
per flush.
(C) Any showerhead manufactured to have a flow capacity of more
than 2.5 gallons of water per minute.
(D) Any interior faucet that emits more than 2.2 gallons of water
per minute.
(6) "Qualified taxpayer" means the owner of any qualified real
property.
(7) "Water-conserving plumbing fixture" means any fixture that is
in compliance with current building standards applicable to a newly
constructed real property of the same type.
(d) The qualified taxpayer shall obtain a certification from a
licensed plumber that the plumber installed a water-conserving
plumbing fixture to replace a noncompliant plumbing fixture on
qualified real property in this state.
SEC. 4. 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 17015 of the Revenue and
Taxation Code is amended to read:
17015. "Nonresident" means an individual other than a resident.
