State Codes and Statutes

Statutes > California > Rtc > 24301-24315

REVENUE AND TAXATION CODE
SECTION 24301-24315



24301.  In computing the tax imposed under this part, "gross income"
does not include any of the items specified in this article.



24302.  Amounts received other than amounts paid by reason of the
death of the insured under life insurance, endowment or annuity
contracts, either during the term or at maturity or upon surrender of
the contract, equal to the total amount of premiums paid thereon. In
the case of a transfer for a valuable consideration by assignment or
otherwise, of a life insurance, endowment or annuity contract or any
interest therein, only the actual value of such consideration and
the amount of the premiums and other sums subsequently paid by the
transferee shall be excluded from gross income under Section 24305 or
this section. The preceding sentence shall not apply in the case of
such a transfer if such contract or interest therein has a basis for
determining gain or loss in the hands of a transferee determined in
whole or in part by reference to such basis of such contract or
interest therein in the hands of the transferor or to a corporation
in which the insured is a shareholder or officer.



24303.  Any grant made in any taxable year by the Secretary of the
Treasury under Section 1603 of the American Recovery and Reinvestment
Tax Act of 2009 (Public Law 111-5) to a person that places in
service specified energy property shall not be includable in the
gross income or the alternative minimum taxable income of the
taxpayer, but shall be taken into account in determining the basis of
the property to which that grant relates, except that the basis of
that property shall be reduced using rules prescribed under Section
50(c) of the Internal Revenue Code in the same manner as a credit
allowed under Section 48(a) of the Internal Revenue Code, and
adjusted in accordance with rules applied by the Secretary of the
Treasury under Section 1603(f) of the American Recovery and
Reinvestment Tax Act of 2009 (Public Law 111-5).



24305.  (a) Except as provided in subdivisions (b) and (c), amounts
received under life insurance policies and contracts paid by reason
of the death of the insured but if such amounts are held by the
insurer under an agreement to pay interest thereon, the interest
payments shall be included in gross income.
   (b) Proceeds of flexible premium contracts payable by reason of
death shall be excluded from gross income only in accordance with the
provisions of Section 101(f) of the Internal Revenue Code.
   (c) (1) In the case of an employer-owned life insurance contract,
any amount received by reason of death of an insured shall be
excluded from gross income only in accordance with the provisions of
Section 101(j) of the Internal Revenue Code.
   (2) Section 101(j) of the Internal Revenue Code, relating to
treatment of certain employer-owned life insurance contracts, shall
apply in accordance with the provisions of Section 863(d) of the
Pension Protection Act of 2006 (Public Law 109-280), relating to
effective dates, except that the phrase "January 1, 2010," shall be
substituted for "the date of the enactment of this Act" contained
therein.



24306.  (a) For purposes of this section, the following terms have
the following meanings, as provided in the Golden State Scholarshare
Trust Act (Article 19 (commencing with Section 69980) of Chapter 2 of
Part 42 of the Education Code):
   (1) "Beneficiary" has the meaning set forth in subdivision (c) of
Section 69980 of the Education Code.
   (2) "Benefit" has the meaning set forth in subdivision (d) of
Section 69980 of the Education Code.
   (3) "Participant" has the meaning set forth in subdivision (h) of
Section 69980 of the Education Code.
   (4) "Participation agreement" has the meaning set forth in
subdivision (i) of Section 69980 of the Education Code.
   (5) "Scholarshare trust" has the meaning set forth in subdivision
(f) of Section 69980 of the Education Code.
   (b) For taxable years beginning on or after January 1, 1998, and
before January 1, 2002, except as otherwise provided in subdivision
(c), gross income of a participant shall not include any of the
following:
   (1) Any earnings under a Scholarshare trust, or a participation
agreement, as provided in Article 19 (commencing with Section 69980)
of Chapter 2 of Part 42 of the Education Code.
   (2) Contributions to the Scholarshare trust on behalf of a
beneficiary shall not be includable as gross income of that
beneficiary.
   (c) For taxable years beginning on or after January 1, 1998, and
before January 1, 2002:
   (1) Any distribution under a Scholarshare trust participation
agreement shall be includable in the gross income of the distributee
in the manner as provided under Section 72 of the Internal Revenue
Code, as modified by Section 24272.2, to the extent not excluded from
gross income under any other provision of this part. For purposes of
applying Section 72 of the Internal Revenue Code, the following
apply:
   (A) All Scholarshare trust accounts of which an individual is a
beneficiary shall be treated as one account, except as otherwise
provided.
   (B) All distributions during a taxable year shall be treated as
one distribution.
   (C) The value of the participation agreement, income on the
participation agreement, and investment in the participation
agreement shall be computed as of the close of the calendar year in
which the taxable year begins.
   (2) A contribution by a for-profit or nonprofit entity, or by a
state or local government agency, for the benefit of an owner or
employee of that entity or a beneficiary whom the owner or employee
has the power to designate, including the owner or employee's minor
children, shall be included in the gross income of that owner or
employee in the year the contribution is made.
   (3) For purposes of this subdivision, "distribution" includes any
benefit furnished to a beneficiary under a participation agreement,
as provided in Article 19 (commencing with Section 69980) of Chapter
2 of Part 42 of the Education Code.
   (4) (A) Paragraph (1) shall not apply to that portion of any
distribution that, within 60 days of distribution, is transferred to
the credit of another beneficiary under the Scholarshare trust who is
a "member of the family," as that term is used in Section 529(e)(2)
of the Internal Revenue Code, as amended by Section 211 of the
Taxpayer Relief Act of 1997 (Public Law 105-34), of the former
beneficiary of that Scholarshare trust.
   (B) Any change in the beneficiary of an interest in the
Scholarshare trust shall not be treated as a distribution for
purposes of paragraph (1) if the new beneficiary is a "member of the
family," as that term is used in Section 2032A(e)(2) of the Internal
Revenue Code, of the former beneficiary of that Scholarshare trust.
   (d) For taxable years beginning on or after January 1, 2002,
Sections 529(c) and 529(e) of the Internal Revenue Code shall apply
except as otherwise provided in Part 10 (commencing with Section
17001) and this part.



24307.  (a) Section 108 of the Internal Revenue Code, relating to
income from discharge of indebtedness, shall apply, except as
otherwise provided.
   (b) Section 108(b)(2)(B) of the Internal Revenue Code, relating to
general business credit, is modified by substituting "this part" in
lieu of "Section 38 (relating to general business credit)."
   (c) Section 108(b)(2)(G) of the Internal Revenue Code, relating to
foreign tax credit carryovers, shall not apply.
   (d) Section 108(b)(3)(B) of the Internal Revenue Code, relating to
credit carryover reduction, is modified by substituting "11.1 cents"
in lieu of "33 1/3 cents" in each place in which it appears. In the
case where more than one credit is allowable under this part, the
credits shall be reduced on a pro rata basis.
   (e) Section 108(g)(3)(B) of the Internal Revenue Code, relating to
adjusted tax attributes, is modified by substituting "$9" in lieu of
"$3."
   (f) (1) The amendments to Section 108 of the Internal Revenue Code
made by Section 13150 of the Revenue Reconciliation Act of 1993
(Public Law 103-66), relating to exclusion from gross income for
income from discharge of qualified real property business
indebtedness, shall apply to discharges occurring on or after January
1, 1996, in taxable years beginning on or after January 1, 1996.
   (2) If a taxpayer makes an election for federal income tax
purposes under Section 108(c) of the Internal Revenue Code, relating
to treatment of discharge of qualified real property business
indebtedness, a separate election shall not be allowed under
paragraph (3) of subdivision (e) of Section 23051.5 and the federal
election shall be binding for purposes of this part.
   (3) If a taxpayer has not made an election for federal income tax
purposes under Section 108(c) of the Internal Revenue Code, relating
to treatment of discharge of qualified real property business
indebtedness, then the taxpayer shall not be allowed to make that
election for purposes of this part.
   (g) The amendments to Section 108 of the Internal Revenue Code
made by Section 13226 of the Revenue Reconciliation Act of 1993
(Public Law 103-66), relating to modifications of discharge of
indebtedness provisions, shall apply to discharges occurring on or
after January 1, 1996, in taxable years beginning on or after January
1, 1996.
   (h) The amendments made to Section 108(d)(7)(A) of the Internal
Revenue Code, relating to certain provisions to be applied at the
corporate level by Section 402 of the Job Creation and Worker
Assistance Act of 2002 (Public Law 107-147), shall apply to
discharges of indebtedness after December 31, 2001, in taxable years
ending after that date. This subdivision shall not apply to any
discharge of indebtedness made before March 1, 2002, pursuant to a
plan of reorganization filed with a bankruptcy court on or before
October 11, 2001.


24308.  Section 1078 of Public Law 98-369 (Tax Reform Act of 1984),
relating to exclusions from gross income of payments from the United
States Forest Service as a result of restricting motorized traffic in
the Boundary Waters Canoe Area, shall apply, with the following
exceptions:
   (a) Section 1078(f)(2) of that act shall not be applicable.
   (b) This section shall be effective only for payments made in
taxable years beginning on or after January 1, 1985.



24308.1.  Gross income does not include any amount received as a
rebate, voucher, or other financial incentive issued by the
California Energy Commission, the Public Utility Commission, or a
local publicly owned electric utility, as defined in subdivision (d)
of Section 9604 of the Public Utilities Code, for any expenses paid
or incurred by a taxpayer for the purchase or installation of any of
the following devices:
   (a) A thermal system as defined in Section 25600 of the Public
Resources Code.
   (b) A solar system as defined in Section 25600 of the Public
Resources Code.
   (c) A wind energy system device that produces electricity.
   (d) A fuel cell generating system, as described in the California
Energy Commission's Emerging Renewable Resources Account Guidebook,
that produces electricity.



24308.5.  (a) Gross income does not include cost-share payments
received by forest landowners from the Department of Forestry and
Fire Protection pursuant to the California Forest Improvement Act of
1978 (Part 2.5 (commencing with Section 4790) of Division 1 of the
Public Resources Code) or from the United States Department of
Agriculture, Forest Service, under the Forest Stewardship Program and
the Stewardship Incentives Program, pursuant to the Cooperative
Forestry Assistance Act, as amended (Public Law 101-624).
   (b) The amount of any cost-share payment excluded pursuant to
subdivision (a) shall not be considered with regard to either of the
following:
   (1) Determining the basis of property acquired or improved.
   (2) Computing any allowable deduction to which the taxpayer may
otherwise be entitled.



24309.  Gross income does not include income (other than rent)
derived by a lessor of real property on the termination of a lease,
representing the value of such property attributable to buildings
erected or other improvements made by the lessee.




24309.5.  Section 110 of the Internal Revenue Code, relating to
qualified lessee construction allowances for short-term leases, shall
apply, except as otherwise provided.
   (a) Section 110(b) of the Internal Revenue Code is modified by
substituting the phrase "(including for purposes of paragraph (2) of
subdivision (e) of Section 24349)" for the phrase "(including for
purposes of Section 168(i)(8)(B)."
   (b) Section 110(c)(2) of the Internal Revenue Code is modified by
substituting the phrase "(as determined under the rules of paragraph
(3) of subdivision (e) of Section 24349)" for the phrase "(as
determined under the rules of Section 168(i)(3))."



24310.  (a) Section 111 of the Internal Revenue Code, relating to
recovery of tax benefit items, shall apply, except as otherwise
provided.
   (b) Sections 111(b) and 111(c) of the Internal Revenue Code,
relating to credits and treatment of credit carryovers, shall be
applicable with respect to credits allowable under this part.




24314.  The following phrase (or its substantial equivalent) in
other codes or statutes does not exempt the gain or loss from the
sale or transfer of bonds from the provisions of this part:
   "The issuance, transfer and interest income earned on any bonds
issued by an agency (state or local) under this article (chapter,
section, etc.) is exempt from taxation of every kind by any state or
local entity."



24315.  Gross income does not include any amount received for empty
beverage containers by a consumer from a recycling center or
recycling location as the recycling value, as defined in Chapter 2
(commencing with Section 14502) of Division 12.1 of the Public
Resources Code.


State Codes and Statutes

Statutes > California > Rtc > 24301-24315

REVENUE AND TAXATION CODE
SECTION 24301-24315



24301.  In computing the tax imposed under this part, "gross income"
does not include any of the items specified in this article.



24302.  Amounts received other than amounts paid by reason of the
death of the insured under life insurance, endowment or annuity
contracts, either during the term or at maturity or upon surrender of
the contract, equal to the total amount of premiums paid thereon. In
the case of a transfer for a valuable consideration by assignment or
otherwise, of a life insurance, endowment or annuity contract or any
interest therein, only the actual value of such consideration and
the amount of the premiums and other sums subsequently paid by the
transferee shall be excluded from gross income under Section 24305 or
this section. The preceding sentence shall not apply in the case of
such a transfer if such contract or interest therein has a basis for
determining gain or loss in the hands of a transferee determined in
whole or in part by reference to such basis of such contract or
interest therein in the hands of the transferor or to a corporation
in which the insured is a shareholder or officer.



24303.  Any grant made in any taxable year by the Secretary of the
Treasury under Section 1603 of the American Recovery and Reinvestment
Tax Act of 2009 (Public Law 111-5) to a person that places in
service specified energy property shall not be includable in the
gross income or the alternative minimum taxable income of the
taxpayer, but shall be taken into account in determining the basis of
the property to which that grant relates, except that the basis of
that property shall be reduced using rules prescribed under Section
50(c) of the Internal Revenue Code in the same manner as a credit
allowed under Section 48(a) of the Internal Revenue Code, and
adjusted in accordance with rules applied by the Secretary of the
Treasury under Section 1603(f) of the American Recovery and
Reinvestment Tax Act of 2009 (Public Law 111-5).



24305.  (a) Except as provided in subdivisions (b) and (c), amounts
received under life insurance policies and contracts paid by reason
of the death of the insured but if such amounts are held by the
insurer under an agreement to pay interest thereon, the interest
payments shall be included in gross income.
   (b) Proceeds of flexible premium contracts payable by reason of
death shall be excluded from gross income only in accordance with the
provisions of Section 101(f) of the Internal Revenue Code.
   (c) (1) In the case of an employer-owned life insurance contract,
any amount received by reason of death of an insured shall be
excluded from gross income only in accordance with the provisions of
Section 101(j) of the Internal Revenue Code.
   (2) Section 101(j) of the Internal Revenue Code, relating to
treatment of certain employer-owned life insurance contracts, shall
apply in accordance with the provisions of Section 863(d) of the
Pension Protection Act of 2006 (Public Law 109-280), relating to
effective dates, except that the phrase "January 1, 2010," shall be
substituted for "the date of the enactment of this Act" contained
therein.



24306.  (a) For purposes of this section, the following terms have
the following meanings, as provided in the Golden State Scholarshare
Trust Act (Article 19 (commencing with Section 69980) of Chapter 2 of
Part 42 of the Education Code):
   (1) "Beneficiary" has the meaning set forth in subdivision (c) of
Section 69980 of the Education Code.
   (2) "Benefit" has the meaning set forth in subdivision (d) of
Section 69980 of the Education Code.
   (3) "Participant" has the meaning set forth in subdivision (h) of
Section 69980 of the Education Code.
   (4) "Participation agreement" has the meaning set forth in
subdivision (i) of Section 69980 of the Education Code.
   (5) "Scholarshare trust" has the meaning set forth in subdivision
(f) of Section 69980 of the Education Code.
   (b) For taxable years beginning on or after January 1, 1998, and
before January 1, 2002, except as otherwise provided in subdivision
(c), gross income of a participant shall not include any of the
following:
   (1) Any earnings under a Scholarshare trust, or a participation
agreement, as provided in Article 19 (commencing with Section 69980)
of Chapter 2 of Part 42 of the Education Code.
   (2) Contributions to the Scholarshare trust on behalf of a
beneficiary shall not be includable as gross income of that
beneficiary.
   (c) For taxable years beginning on or after January 1, 1998, and
before January 1, 2002:
   (1) Any distribution under a Scholarshare trust participation
agreement shall be includable in the gross income of the distributee
in the manner as provided under Section 72 of the Internal Revenue
Code, as modified by Section 24272.2, to the extent not excluded from
gross income under any other provision of this part. For purposes of
applying Section 72 of the Internal Revenue Code, the following
apply:
   (A) All Scholarshare trust accounts of which an individual is a
beneficiary shall be treated as one account, except as otherwise
provided.
   (B) All distributions during a taxable year shall be treated as
one distribution.
   (C) The value of the participation agreement, income on the
participation agreement, and investment in the participation
agreement shall be computed as of the close of the calendar year in
which the taxable year begins.
   (2) A contribution by a for-profit or nonprofit entity, or by a
state or local government agency, for the benefit of an owner or
employee of that entity or a beneficiary whom the owner or employee
has the power to designate, including the owner or employee's minor
children, shall be included in the gross income of that owner or
employee in the year the contribution is made.
   (3) For purposes of this subdivision, "distribution" includes any
benefit furnished to a beneficiary under a participation agreement,
as provided in Article 19 (commencing with Section 69980) of Chapter
2 of Part 42 of the Education Code.
   (4) (A) Paragraph (1) shall not apply to that portion of any
distribution that, within 60 days of distribution, is transferred to
the credit of another beneficiary under the Scholarshare trust who is
a "member of the family," as that term is used in Section 529(e)(2)
of the Internal Revenue Code, as amended by Section 211 of the
Taxpayer Relief Act of 1997 (Public Law 105-34), of the former
beneficiary of that Scholarshare trust.
   (B) Any change in the beneficiary of an interest in the
Scholarshare trust shall not be treated as a distribution for
purposes of paragraph (1) if the new beneficiary is a "member of the
family," as that term is used in Section 2032A(e)(2) of the Internal
Revenue Code, of the former beneficiary of that Scholarshare trust.
   (d) For taxable years beginning on or after January 1, 2002,
Sections 529(c) and 529(e) of the Internal Revenue Code shall apply
except as otherwise provided in Part 10 (commencing with Section
17001) and this part.



24307.  (a) Section 108 of the Internal Revenue Code, relating to
income from discharge of indebtedness, shall apply, except as
otherwise provided.
   (b) Section 108(b)(2)(B) of the Internal Revenue Code, relating to
general business credit, is modified by substituting "this part" in
lieu of "Section 38 (relating to general business credit)."
   (c) Section 108(b)(2)(G) of the Internal Revenue Code, relating to
foreign tax credit carryovers, shall not apply.
   (d) Section 108(b)(3)(B) of the Internal Revenue Code, relating to
credit carryover reduction, is modified by substituting "11.1 cents"
in lieu of "33 1/3 cents" in each place in which it appears. In the
case where more than one credit is allowable under this part, the
credits shall be reduced on a pro rata basis.
   (e) Section 108(g)(3)(B) of the Internal Revenue Code, relating to
adjusted tax attributes, is modified by substituting "$9" in lieu of
"$3."
   (f) (1) The amendments to Section 108 of the Internal Revenue Code
made by Section 13150 of the Revenue Reconciliation Act of 1993
(Public Law 103-66), relating to exclusion from gross income for
income from discharge of qualified real property business
indebtedness, shall apply to discharges occurring on or after January
1, 1996, in taxable years beginning on or after January 1, 1996.
   (2) If a taxpayer makes an election for federal income tax
purposes under Section 108(c) of the Internal Revenue Code, relating
to treatment of discharge of qualified real property business
indebtedness, a separate election shall not be allowed under
paragraph (3) of subdivision (e) of Section 23051.5 and the federal
election shall be binding for purposes of this part.
   (3) If a taxpayer has not made an election for federal income tax
purposes under Section 108(c) of the Internal Revenue Code, relating
to treatment of discharge of qualified real property business
indebtedness, then the taxpayer shall not be allowed to make that
election for purposes of this part.
   (g) The amendments to Section 108 of the Internal Revenue Code
made by Section 13226 of the Revenue Reconciliation Act of 1993
(Public Law 103-66), relating to modifications of discharge of
indebtedness provisions, shall apply to discharges occurring on or
after January 1, 1996, in taxable years beginning on or after January
1, 1996.
   (h) The amendments made to Section 108(d)(7)(A) of the Internal
Revenue Code, relating to certain provisions to be applied at the
corporate level by Section 402 of the Job Creation and Worker
Assistance Act of 2002 (Public Law 107-147), shall apply to
discharges of indebtedness after December 31, 2001, in taxable years
ending after that date. This subdivision shall not apply to any
discharge of indebtedness made before March 1, 2002, pursuant to a
plan of reorganization filed with a bankruptcy court on or before
October 11, 2001.


24308.  Section 1078 of Public Law 98-369 (Tax Reform Act of 1984),
relating to exclusions from gross income of payments from the United
States Forest Service as a result of restricting motorized traffic in
the Boundary Waters Canoe Area, shall apply, with the following
exceptions:
   (a) Section 1078(f)(2) of that act shall not be applicable.
   (b) This section shall be effective only for payments made in
taxable years beginning on or after January 1, 1985.



24308.1.  Gross income does not include any amount received as a
rebate, voucher, or other financial incentive issued by the
California Energy Commission, the Public Utility Commission, or a
local publicly owned electric utility, as defined in subdivision (d)
of Section 9604 of the Public Utilities Code, for any expenses paid
or incurred by a taxpayer for the purchase or installation of any of
the following devices:
   (a) A thermal system as defined in Section 25600 of the Public
Resources Code.
   (b) A solar system as defined in Section 25600 of the Public
Resources Code.
   (c) A wind energy system device that produces electricity.
   (d) A fuel cell generating system, as described in the California
Energy Commission's Emerging Renewable Resources Account Guidebook,
that produces electricity.



24308.5.  (a) Gross income does not include cost-share payments
received by forest landowners from the Department of Forestry and
Fire Protection pursuant to the California Forest Improvement Act of
1978 (Part 2.5 (commencing with Section 4790) of Division 1 of the
Public Resources Code) or from the United States Department of
Agriculture, Forest Service, under the Forest Stewardship Program and
the Stewardship Incentives Program, pursuant to the Cooperative
Forestry Assistance Act, as amended (Public Law 101-624).
   (b) The amount of any cost-share payment excluded pursuant to
subdivision (a) shall not be considered with regard to either of the
following:
   (1) Determining the basis of property acquired or improved.
   (2) Computing any allowable deduction to which the taxpayer may
otherwise be entitled.



24309.  Gross income does not include income (other than rent)
derived by a lessor of real property on the termination of a lease,
representing the value of such property attributable to buildings
erected or other improvements made by the lessee.




24309.5.  Section 110 of the Internal Revenue Code, relating to
qualified lessee construction allowances for short-term leases, shall
apply, except as otherwise provided.
   (a) Section 110(b) of the Internal Revenue Code is modified by
substituting the phrase "(including for purposes of paragraph (2) of
subdivision (e) of Section 24349)" for the phrase "(including for
purposes of Section 168(i)(8)(B)."
   (b) Section 110(c)(2) of the Internal Revenue Code is modified by
substituting the phrase "(as determined under the rules of paragraph
(3) of subdivision (e) of Section 24349)" for the phrase "(as
determined under the rules of Section 168(i)(3))."



24310.  (a) Section 111 of the Internal Revenue Code, relating to
recovery of tax benefit items, shall apply, except as otherwise
provided.
   (b) Sections 111(b) and 111(c) of the Internal Revenue Code,
relating to credits and treatment of credit carryovers, shall be
applicable with respect to credits allowable under this part.




24314.  The following phrase (or its substantial equivalent) in
other codes or statutes does not exempt the gain or loss from the
sale or transfer of bonds from the provisions of this part:
   "The issuance, transfer and interest income earned on any bonds
issued by an agency (state or local) under this article (chapter,
section, etc.) is exempt from taxation of every kind by any state or
local entity."



24315.  Gross income does not include any amount received for empty
beverage containers by a consumer from a recycling center or
recycling location as the recycling value, as defined in Chapter 2
(commencing with Section 14502) of Division 12.1 of the Public
Resources Code.



State Codes and Statutes

State Codes and Statutes

Statutes > California > Rtc > 24301-24315

REVENUE AND TAXATION CODE
SECTION 24301-24315



24301.  In computing the tax imposed under this part, "gross income"
does not include any of the items specified in this article.



24302.  Amounts received other than amounts paid by reason of the
death of the insured under life insurance, endowment or annuity
contracts, either during the term or at maturity or upon surrender of
the contract, equal to the total amount of premiums paid thereon. In
the case of a transfer for a valuable consideration by assignment or
otherwise, of a life insurance, endowment or annuity contract or any
interest therein, only the actual value of such consideration and
the amount of the premiums and other sums subsequently paid by the
transferee shall be excluded from gross income under Section 24305 or
this section. The preceding sentence shall not apply in the case of
such a transfer if such contract or interest therein has a basis for
determining gain or loss in the hands of a transferee determined in
whole or in part by reference to such basis of such contract or
interest therein in the hands of the transferor or to a corporation
in which the insured is a shareholder or officer.



24303.  Any grant made in any taxable year by the Secretary of the
Treasury under Section 1603 of the American Recovery and Reinvestment
Tax Act of 2009 (Public Law 111-5) to a person that places in
service specified energy property shall not be includable in the
gross income or the alternative minimum taxable income of the
taxpayer, but shall be taken into account in determining the basis of
the property to which that grant relates, except that the basis of
that property shall be reduced using rules prescribed under Section
50(c) of the Internal Revenue Code in the same manner as a credit
allowed under Section 48(a) of the Internal Revenue Code, and
adjusted in accordance with rules applied by the Secretary of the
Treasury under Section 1603(f) of the American Recovery and
Reinvestment Tax Act of 2009 (Public Law 111-5).



24305.  (a) Except as provided in subdivisions (b) and (c), amounts
received under life insurance policies and contracts paid by reason
of the death of the insured but if such amounts are held by the
insurer under an agreement to pay interest thereon, the interest
payments shall be included in gross income.
   (b) Proceeds of flexible premium contracts payable by reason of
death shall be excluded from gross income only in accordance with the
provisions of Section 101(f) of the Internal Revenue Code.
   (c) (1) In the case of an employer-owned life insurance contract,
any amount received by reason of death of an insured shall be
excluded from gross income only in accordance with the provisions of
Section 101(j) of the Internal Revenue Code.
   (2) Section 101(j) of the Internal Revenue Code, relating to
treatment of certain employer-owned life insurance contracts, shall
apply in accordance with the provisions of Section 863(d) of the
Pension Protection Act of 2006 (Public Law 109-280), relating to
effective dates, except that the phrase "January 1, 2010," shall be
substituted for "the date of the enactment of this Act" contained
therein.



24306.  (a) For purposes of this section, the following terms have
the following meanings, as provided in the Golden State Scholarshare
Trust Act (Article 19 (commencing with Section 69980) of Chapter 2 of
Part 42 of the Education Code):
   (1) "Beneficiary" has the meaning set forth in subdivision (c) of
Section 69980 of the Education Code.
   (2) "Benefit" has the meaning set forth in subdivision (d) of
Section 69980 of the Education Code.
   (3) "Participant" has the meaning set forth in subdivision (h) of
Section 69980 of the Education Code.
   (4) "Participation agreement" has the meaning set forth in
subdivision (i) of Section 69980 of the Education Code.
   (5) "Scholarshare trust" has the meaning set forth in subdivision
(f) of Section 69980 of the Education Code.
   (b) For taxable years beginning on or after January 1, 1998, and
before January 1, 2002, except as otherwise provided in subdivision
(c), gross income of a participant shall not include any of the
following:
   (1) Any earnings under a Scholarshare trust, or a participation
agreement, as provided in Article 19 (commencing with Section 69980)
of Chapter 2 of Part 42 of the Education Code.
   (2) Contributions to the Scholarshare trust on behalf of a
beneficiary shall not be includable as gross income of that
beneficiary.
   (c) For taxable years beginning on or after January 1, 1998, and
before January 1, 2002:
   (1) Any distribution under a Scholarshare trust participation
agreement shall be includable in the gross income of the distributee
in the manner as provided under Section 72 of the Internal Revenue
Code, as modified by Section 24272.2, to the extent not excluded from
gross income under any other provision of this part. For purposes of
applying Section 72 of the Internal Revenue Code, the following
apply:
   (A) All Scholarshare trust accounts of which an individual is a
beneficiary shall be treated as one account, except as otherwise
provided.
   (B) All distributions during a taxable year shall be treated as
one distribution.
   (C) The value of the participation agreement, income on the
participation agreement, and investment in the participation
agreement shall be computed as of the close of the calendar year in
which the taxable year begins.
   (2) A contribution by a for-profit or nonprofit entity, or by a
state or local government agency, for the benefit of an owner or
employee of that entity or a beneficiary whom the owner or employee
has the power to designate, including the owner or employee's minor
children, shall be included in the gross income of that owner or
employee in the year the contribution is made.
   (3) For purposes of this subdivision, "distribution" includes any
benefit furnished to a beneficiary under a participation agreement,
as provided in Article 19 (commencing with Section 69980) of Chapter
2 of Part 42 of the Education Code.
   (4) (A) Paragraph (1) shall not apply to that portion of any
distribution that, within 60 days of distribution, is transferred to
the credit of another beneficiary under the Scholarshare trust who is
a "member of the family," as that term is used in Section 529(e)(2)
of the Internal Revenue Code, as amended by Section 211 of the
Taxpayer Relief Act of 1997 (Public Law 105-34), of the former
beneficiary of that Scholarshare trust.
   (B) Any change in the beneficiary of an interest in the
Scholarshare trust shall not be treated as a distribution for
purposes of paragraph (1) if the new beneficiary is a "member of the
family," as that term is used in Section 2032A(e)(2) of the Internal
Revenue Code, of the former beneficiary of that Scholarshare trust.
   (d) For taxable years beginning on or after January 1, 2002,
Sections 529(c) and 529(e) of the Internal Revenue Code shall apply
except as otherwise provided in Part 10 (commencing with Section
17001) and this part.



24307.  (a) Section 108 of the Internal Revenue Code, relating to
income from discharge of indebtedness, shall apply, except as
otherwise provided.
   (b) Section 108(b)(2)(B) of the Internal Revenue Code, relating to
general business credit, is modified by substituting "this part" in
lieu of "Section 38 (relating to general business credit)."
   (c) Section 108(b)(2)(G) of the Internal Revenue Code, relating to
foreign tax credit carryovers, shall not apply.
   (d) Section 108(b)(3)(B) of the Internal Revenue Code, relating to
credit carryover reduction, is modified by substituting "11.1 cents"
in lieu of "33 1/3 cents" in each place in which it appears. In the
case where more than one credit is allowable under this part, the
credits shall be reduced on a pro rata basis.
   (e) Section 108(g)(3)(B) of the Internal Revenue Code, relating to
adjusted tax attributes, is modified by substituting "$9" in lieu of
"$3."
   (f) (1) The amendments to Section 108 of the Internal Revenue Code
made by Section 13150 of the Revenue Reconciliation Act of 1993
(Public Law 103-66), relating to exclusion from gross income for
income from discharge of qualified real property business
indebtedness, shall apply to discharges occurring on or after January
1, 1996, in taxable years beginning on or after January 1, 1996.
   (2) If a taxpayer makes an election for federal income tax
purposes under Section 108(c) of the Internal Revenue Code, relating
to treatment of discharge of qualified real property business
indebtedness, a separate election shall not be allowed under
paragraph (3) of subdivision (e) of Section 23051.5 and the federal
election shall be binding for purposes of this part.
   (3) If a taxpayer has not made an election for federal income tax
purposes under Section 108(c) of the Internal Revenue Code, relating
to treatment of discharge of qualified real property business
indebtedness, then the taxpayer shall not be allowed to make that
election for purposes of this part.
   (g) The amendments to Section 108 of the Internal Revenue Code
made by Section 13226 of the Revenue Reconciliation Act of 1993
(Public Law 103-66), relating to modifications of discharge of
indebtedness provisions, shall apply to discharges occurring on or
after January 1, 1996, in taxable years beginning on or after January
1, 1996.
   (h) The amendments made to Section 108(d)(7)(A) of the Internal
Revenue Code, relating to certain provisions to be applied at the
corporate level by Section 402 of the Job Creation and Worker
Assistance Act of 2002 (Public Law 107-147), shall apply to
discharges of indebtedness after December 31, 2001, in taxable years
ending after that date. This subdivision shall not apply to any
discharge of indebtedness made before March 1, 2002, pursuant to a
plan of reorganization filed with a bankruptcy court on or before
October 11, 2001.


24308.  Section 1078 of Public Law 98-369 (Tax Reform Act of 1984),
relating to exclusions from gross income of payments from the United
States Forest Service as a result of restricting motorized traffic in
the Boundary Waters Canoe Area, shall apply, with the following
exceptions:
   (a) Section 1078(f)(2) of that act shall not be applicable.
   (b) This section shall be effective only for payments made in
taxable years beginning on or after January 1, 1985.



24308.1.  Gross income does not include any amount received as a
rebate, voucher, or other financial incentive issued by the
California Energy Commission, the Public Utility Commission, or a
local publicly owned electric utility, as defined in subdivision (d)
of Section 9604 of the Public Utilities Code, for any expenses paid
or incurred by a taxpayer for the purchase or installation of any of
the following devices:
   (a) A thermal system as defined in Section 25600 of the Public
Resources Code.
   (b) A solar system as defined in Section 25600 of the Public
Resources Code.
   (c) A wind energy system device that produces electricity.
   (d) A fuel cell generating system, as described in the California
Energy Commission's Emerging Renewable Resources Account Guidebook,
that produces electricity.



24308.5.  (a) Gross income does not include cost-share payments
received by forest landowners from the Department of Forestry and
Fire Protection pursuant to the California Forest Improvement Act of
1978 (Part 2.5 (commencing with Section 4790) of Division 1 of the
Public Resources Code) or from the United States Department of
Agriculture, Forest Service, under the Forest Stewardship Program and
the Stewardship Incentives Program, pursuant to the Cooperative
Forestry Assistance Act, as amended (Public Law 101-624).
   (b) The amount of any cost-share payment excluded pursuant to
subdivision (a) shall not be considered with regard to either of the
following:
   (1) Determining the basis of property acquired or improved.
   (2) Computing any allowable deduction to which the taxpayer may
otherwise be entitled.



24309.  Gross income does not include income (other than rent)
derived by a lessor of real property on the termination of a lease,
representing the value of such property attributable to buildings
erected or other improvements made by the lessee.




24309.5.  Section 110 of the Internal Revenue Code, relating to
qualified lessee construction allowances for short-term leases, shall
apply, except as otherwise provided.
   (a) Section 110(b) of the Internal Revenue Code is modified by
substituting the phrase "(including for purposes of paragraph (2) of
subdivision (e) of Section 24349)" for the phrase "(including for
purposes of Section 168(i)(8)(B)."
   (b) Section 110(c)(2) of the Internal Revenue Code is modified by
substituting the phrase "(as determined under the rules of paragraph
(3) of subdivision (e) of Section 24349)" for the phrase "(as
determined under the rules of Section 168(i)(3))."



24310.  (a) Section 111 of the Internal Revenue Code, relating to
recovery of tax benefit items, shall apply, except as otherwise
provided.
   (b) Sections 111(b) and 111(c) of the Internal Revenue Code,
relating to credits and treatment of credit carryovers, shall be
applicable with respect to credits allowable under this part.




24314.  The following phrase (or its substantial equivalent) in
other codes or statutes does not exempt the gain or loss from the
sale or transfer of bonds from the provisions of this part:
   "The issuance, transfer and interest income earned on any bonds
issued by an agency (state or local) under this article (chapter,
section, etc.) is exempt from taxation of every kind by any state or
local entity."



24315.  Gross income does not include any amount received for empty
beverage containers by a consumer from a recycling center or
recycling location as the recycling value, as defined in Chapter 2
(commencing with Section 14502) of Division 12.1 of the Public
Resources Code.