Income taxes: gross income: exclusion: depreciation deduction: air quality funds.

The Personal Income Tax Law and the Corporation Tax Law define gross income as all income from whatever source derived, unless specifically excluded. This bill would exclude from gross income any amount provided to a person by the State Air Resources Board, an air pollution control district, or an air quality management district, as defined, for the purpose of air pollution reduction. The Personal Income Tax Law and the Corporation Tax Law, in modified conformity with federal income tax laws, determine the basis for property when determining a gain or loss on the sale or other disposition of that property or when determining a depreciation deduction relating to that property. This bill would provide, under both laws, that for purposes of determining the gain or loss from the sale or other deposition of the property or when determining the depreciation deduction, the basis of the property shall be reduced to the extent the property was acquired with a grant amount by the State Air Resources Board, an air pollution control district, or an air quality management district, as defined, for the purpose of air pollution reduction. This bill would take effect immediately as a tax levy.