Personal Income Tax Law: Corporation Tax Law: tax credits: backup generators: solar batteries.

Plain English Breakdown

The bill summary and digest do not provide specific details about the performance indicators, data collection requirements, or goals for the tax expenditure. These are implied to be included but not detailed in the provided text.

Tax Credits for Backup Generators and Solar Batteries

The bill allows taxpayers to get credits on their taxes for buying backup generators or solar batteries, with limits based on the type of equipment.

What This Bill Does

• Creates a tax credit equal to half the cost of a backup generator or solar battery for use in homes or businesses.
• Limits the credit to $5,000 per residence or commercial property if buying a backup generator.
• Limits the credit to $7,500 per residence or commercial property if buying a solar battery.
• Requires that an appropriation is made in the Budget Act for administering these tax credits.

Who It Names or Affects

• Taxpayers who buy backup generators or solar batteries for their homes or businesses.
• The state government, which will manage and fund the tax credit program.

Terms To Know

tax credit

A reduction in the amount of taxes a person has to pay based on certain expenses.

appropriation

Money set aside by the government for specific purposes, like funding tax credits.

Limits and Unknowns

• The bill only applies in taxable years where an appropriation is made to fund it.
• It does not specify how many people will benefit from this credit or what the total cost might be.

Official Summary Text

SB 1118, as introduced, Alvarado-Gil.
Personal Income Tax Law: Corporation Tax Law: tax credits: backup generators: solar batteries.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.
This bill would, for taxable years beginning on or after January 1, 2027, and before January 1, 2032, allow a credit against those taxes equal to 50% of the cost of a backup electricity generator or solar battery, as specified, by a qualified taxpayer, as defined, for use in a residence or commercial property. The bill would limit the credit to $5,000 per residence or commercial property in the case of the purchase of a backup electricity generator, and to $7,500 in the case of a solar battery. The bill would only apply these provisions in taxable years for which an appropriation is made in the Budget Act or another statute for the purposes of administering the credits.
Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals the tax expenditure will achieve, detailed performance indicators, and data collection requirements.
This bill would include additional information required for any bill authorizing a new tax expenditure.
This bill would take effect immediately as a tax levy.

Current Bill Text

Download Bill PDF