AB 963

This bill creates a nonrefundable individual income tax credit and a corporate

income and franchise tax credit for costs paid to eliminate a lead hazard in a dwelling

or residential condominium unit in this state (residence).

Under this bill, an owner of a residence may claim a credit for all costs paid, up

to $1,500 per dwelling unit, to permanently eliminate a lead hazard in a residence.

A dwelling may contain more than one dwelling unit. To claim the credit, a claimant

must meet all of the following conditions:

1. A certified professional must investigate the residence and determine that

a lead hazard exists.

2. The lead hazard abatement activities in the residence must be conducted in

accordance with rules promulgated by the Department of Health Services (DHS).

3. A certified professional must do one or both of the following: 1) issue a

certificate confirming that the residence is free from lead-bearing paint on the date

of the inspection; or 2) execute a document certifying that the lead hazard abatement

activities permanently eliminated all lead hazards in the residence.

At the option of the owner, the owner may, at the same time the owner

remediates lead hazards in a residence, also remediate any lead hazards present in

the residence's utility service connections and claim a credit for those costs.

The credit is nonrefundable, meaning that it may be claimed only up to the

amount of a taxpayer's income or franchise tax liability. If the amount of the credit

for which a claimant is eligible exceeds the claimant's tax liability, the claimant may

carry forward the excess credit amount for up to the following seven taxable years.