CA AB1705

Excludes grants made under Section 1603 of the American Recovery and Reinvestment Tax Act of 2009 from gross income and alternative minimum taxable income for both personal and corporate income tax purposes in California.

Requires that excluded grant amounts be used to adjust the basis of the specified energy property, with basis reduction following Internal Revenue Code Section 50(c) rules and upward adjustments per Treasury rules under Section 1603(f).

Applies to taxpayers who place in service specified energy property and receive grants from the Secretary of the Treasury under the federal American Recovery and Reinvestment Act of 2009.

Takes effect immediately as a tax levy requiring majority vote approval.