Vehicular air pollution: zero-emission and near-zero-emission vehicles.

(1) Existing law establishes the Air Quality Improvement Program that is administered by the State Air Resources Board for the purposes of funding projects related to, among other things, reduction of criteria air pollutants and improvement of air quality. Pursuant to the Air Quality Improvement Program, the state board has established the Clean Vehicle Rebate Project to promote the production and use of zero-emission vehicles. The Charge Ahead California Initiative, administered by the state board, includes goals of, among other things, placing in service at least 1,000,000 zero-emission and near-zero-emission vehicles by January 1, 2023, and increasing access for disadvantaged, low-income, and moderate-income communities and consumers to zero-emission and near-zero-emission vehicles. This bill would require, on or before January 1, 2019, the state board to develop and implement a comprehensive program comprised of a portfolio of incentives to promote zero-emission and near-zero-emission vehicle deployment in the state to drastically increase the use of those vehicles and to meet specified goals established by the Governor and the Legislature. (2) The Sales and Use Tax Law imposes a tax on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption of tangible personal property purchased from a retailer for the storage, use, or other consumption in this state measured by sales price. That law defines the terms "gross receipts" and "sales price." This bill, on and after January 1, 2017, would exclude from "gross receipts" and "sales price" that portion of the cost of a new or used near-zero or zero-emission vehicle purchased by a low-income purchaser, as defined, that does not exceed $40,000. The Bradley-Burns Uniform Local Sales and Use Tax Law authorizes counties and cities to impose local sales and use taxes in conformity with the Sales and Use Tax Law, and existing law authorizes districts, as specified, to impose transactions and use taxes generally in accordance with the Transactions and Use Tax Law, which generally conforms to the Sales and Use Tax Law. Amendments to the Sales and Use Tax Law are automatically incorporated into the local tax laws. This bill would specify that this exemption does not apply to local sales and use taxes or transactions and use taxes. (3) The Personal Income Tax Law allows various credits against the taxes imposed by that law. This bill would, for taxable years beginning on or after January 1, 2017, and before January 1, 2026, allow a credit under the Personal Income Tax Law in an amount equal to $2,500 to a qualified taxpayer, as defined, who purchased a near-zero or zero-emission vehicle during the taxable year. This bill would state the intent of the Legislature to enact legislation to provide that the credit amount in excess of tax liability would be refundable in those years in which an appropriation for that purpose is made by the Legislature. The Personal Income Tax Law, in modified conformity with federal income tax laws, allows various deductions from gross income in computing adjusted gross income under that law, including deductions for payments to individual retirement accounts, alimony payments, and interest on educational loans. This bill, for taxable years beginning on or after January 1, 2017, and before January 1, 2026, would allow a deduction of $2,500 in computing adjusted gross income to a qualified taxpayer, as defined, who purchased a near-zero or zero-emission vehicle during the taxable year, as provided. This bill would require a qualified taxpayer to make an irrevocable election to either claim the above-described deduction or credit for the taxable year. (4) This bill would require the Franchise Tax Board to make an annual report to the Legislature regarding the tax provisions allowed by the bill.