AB 2042: Personal income tax credits: residential graywater reuse systems.

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

This bill, for taxable years beginning on or after January 1, 2019, and before January 1, 2024, would allow as a credit against the taxes net tax imposed by that law equal to 25% of the cost of installing a residential graywater reuse system during the taxable year in the taxpayers residence located in this state. The bill would limit the cumulative amount of the credit to $1,000 for the same residence. The bill would require the Franchise Tax Board to receive and evaluate applications that are submitted by taxpayers to receive a residential graywater reuse system credit and to certify to the taxpayer the amount of the credit that is authorized. The bill would prohibit the board from certifying tax credits exceeding the sum of $250,000 for any calendar year. The bill also would include additional information required for any bill authorizing a new income tax credit.

This bill would take effect immediately as a tax levy.