SB 1073 - Income Taxes: Research and Development Credit: Renewable Energy

• Increases the research and development tax credit from 15% to 20% for qualified research expenses related to green technology and renewable energy, effective for taxable years beginning January 1, 2010 or later.

• Defines "green technology and renewable energy research and development" to include research meeting greenhouse gas emissions standards, reducing wasteful energy use, improving water efficiency, utilizing recycled materials, applying cogeneration technology, or using solar, wind, geothermal, biomass, or other renewable energy sources.

• Applies the enhanced 20% credit rate to both personal income tax (Section 17052.12) and corporation tax (Section 23609) calculations.

• Defers allowance of new and additional credits generated from January 1, 2010 through December 31, 2013 until the taxpayer's first taxable year beginning on or after January 1, 2014.

• Takes effect immediately as a tax levy.