AB 1341: Zero-emission and near-zero-emission vehicles: income tax credits: deduction.

(1)The Personal Income Tax Law allows various credits against the taxes imposed by that law.

This bill, for taxable years beginning on or after January 1, 2018, and before January 1, 2023, would allow a credit under the Personal Income Tax Law in a specified amount, depending on the type of vehicle, to a qualified taxpayer, as defined, who purchased or leased in California a new near-zero-emission or zero-emission vehicle that is registered in California during the taxable year. The bill would provide for an additional credit for qualified taxpayers who are low-income purchasers, as defined. The bill would provide for assignment by a qualified taxpayer of the tax credit to a financing entity, as specified. The bill would require qualified taxpayers to obtain preapproval from the State Air Resources Board before purchasing or leasing a near-zero- or zero-emission vehicle, as specified. The bill would state the intent of the Legislature to enact legislation to provide that the credit amount in excess of tax liability would be refundable in those years in which an appropriation for that purpose is made by the Legislature.

(3)The California Global Warming Solutions Act of 2006 designates the State Air Resources Board as the state agency charged with monitoring and regulating sources of emissions of greenhouse gases. The act authorizes the state board to include use of market-based compliance mechanisms. Existing law requires all moneys, except for fines and penalties, collected by the state board from covered entities as part of a market-based compliance mechanism to be deposited in the Greenhouse Gas Reduction Fund. Existing law appropriates certain of these moneys for various purposes.

This bill would provide that moneys from the Greenhouse Gas Reduction Fund, the Air Quality Improvement Fund, or the Alternative and Renewable Fuel and Vehicle Technology Fund, upon appropriation by the Legislature, may be transferred to the General Fund for purposes of reimbursing the General Fund for the costs of the income tax credit in the bill.