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AB 1159 Amendment Update

As I reported earlier, Assemblyman V. Manuel Perez, Chairman of the Jobs, Economic Development and the Economy Committee, published amendments to  AB 1159 on May 11. This bill extends the Sales or Use tax credit benefit of the Enterprise Zone (and TTA and LAMBRA) program to include a credit for the purchase of equipment related to renewable energy. Unlike current treatment of Enterprise Zones, this bill would allow for aggregate value of renewable energy resources, “in all of the enterprise zones in which the taxpayer is engaged.” The extra benefit is only temporary until 2016, but the credit can be applied against the taxpayers’ “net tax.” If the amount of the credit exceeds net tax, it may be carried over, but must be applied to the earliest taxable years. The total cost of qualified property is not to exceed $1 million and must be used exclusively within an enterprise zone

The bill, which will be known as the California Cleantech Advantage Act of 2009, is one in a long list of legislation attempting to reduce greenhouse gas emissions. Assembly Bill 32 of 2006 made California a leader in the effort to reduce greenhouse gases and preserve the environment. Financial incentives for research and investment in low emission technology is meant to encourage job creation while simultaneously reduce carbon dioxide emissions with renewable energy alternatives. In 2008, the CleanTech Venture reached $8.4 Billion and is expected to create 114,000 new jobs in the future.

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