Plain English Breakdown
The bill takes effect immediately as a tax levy, but the actual application of the tax changes is limited to taxable years between January 1, 2025, and before January 1, 2030.
AB-2016: Funding to Remove Hexavalent Chromium from Water and Changes to Military Tax Exclusions
This law provides $69,425,000 for the State Water Resources Control Board to fund grants for removing hexavalent chromium from drinking water and removes income limits and dollar caps on tax exclusions for military retirement pay.
What This Bill Does
- Appropriates $69,425,000 from the General Fund to the State Water Resources Control Board.
- Requires the board to make grants to entities that plan or build facilities to remove hexavalent chromium from drinking water.
- Eliminates income limits for taxpayers who want to exclude military retirement pay and survivor benefit annuity payments from their gross income.
- Removes the $20,000 cap on how much of these payments can be excluded from taxes.
- Includes required goals, performance indicators, and data collection details because this bill creates a new tax expenditure.
Who It Names or Affects
- The State Water Resources Control Board
- Entities that build or design water treatment facilities to remove hexavalent chromium
- Taxpayers who receive military retirement pay from the federal government
- Recipients of United States Department of Defense Survivor Benefit Plan annuity payments
Terms To Know
- Hexavalent chromium
- A specific form of the metal chromium that is a contaminant in drinking water.
- General Fund
- The main account where California keeps most of its tax money to pay for state services.
- Tax expenditure
- A reduction in taxes, such as an exclusion from gross income, that costs the government revenue and requires specific reporting goals.
Limits and Unknowns
- The bill text does not list which specific entities will receive grants for water treatment facilities.
- The tax changes apply to taxable years beginning on or after January 1, 2025, and before January 1, 2030.