Vetoed by Governor Arnold Schwarzenegger

Vote Smart's Synopsis:

Vote to concur with Assembly amendments and pass a bill that excludes certain federal renewable energy property grants from taxable gross income and alternative minimum income, amends tax law with regards to exclusion from taxation of gross income associated with principal residence indebtedness, and creates a penalty for certain taxpayers who claim "excessive" tax credits or refunds.

Highlights:

-Excludes from gross income and alternative minimum taxable income any grant made under the "American Recovery and Reinvestment Tax Act of 2009" (the "Stimulus" Act, Public Law 111-5) to a person who put into service any qualified renewable energy property (Sec. 11). -Increases the maximum limit on the amount of gross income associated with qualified principal residence indebtedness discharged before January 1, 2013 that may be excluded from taxation in accordance with the "Mortgage Forgiveness Debt Relief Act of 2007" (Public Law 110-142) from $250,000 to $500,000, and, in the case of a married individual filing a separate return, from $125,000 to $250,000 (Sec. 14). -Creates a penalty, the amount of which shall be determined in accordance with 26 U.S.C. 6776, for a taxpayer who claims a tax credit or refund for an "excessive" amount, provided that the taxpayer's adjusted gross income is in the following range (Sec. 47):

-Over $20 million in the case of an individual filing a joint return under Section 18521 or a surviving spouse under Section 17046 of the California Revenue and Taxation Code; or -Over $10 million in the case of any individual not mentioned in the previous subhighlight.

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that excludes certain federal renewable energy property grants from taxable gross income and alternative minimum income, amends tax law with regards to exclusion from taxation of gross income associated with principal residence indebtedness, and creates a penalty for certain taxpayers who claim "excessive" tax credits or refunds.

Highlights:

-Excludes from gross income and alternative minimum taxable income any grant made under the "American Recovery and Reinvestment Tax Act of 2009" (the "Stimulus" Act, Public Law 111-5) to a person who put into service any qualified renewable energy property (Sec. 11). -Increases the maximum limit on the amount of gross income associated with qualified principal residence indebtedness discharged before January 1, 2013 that may be excluded from taxation in accordance with the "Mortgage Forgiveness Debt Relief Act of 2007" (Public Law 110-142) from $250,000 to $500,000, and, in the case of a married individual filing a separate return, from $125,000 to $250,000 (Sec. 14). -Creates a penalty, the amount of which shall be determined in accordance with 26 U.S.C. 6776, for a taxpayer who claims a tax credit or refund for an "excessive" amount, provided that the taxpayer's adjusted gross income is in the following range (Sec. 47):

-Over $20 million in the case of an individual filing a joint return under Section 18521 or a surviving spouse under Section 17046 of the California Revenue and Taxation Code; or -Over $10 million in the case of any individual not mentioned in the previous subhighlight.

Full Bill Text