Corporation taxes: deduction: electrical and gas corporations.

Under existing law, the Public Utilities Commission has regulatory authority over public utilities, including electrical and gas corporations. The Corporation Tax Law, in modified conformity with federal income tax laws, allows various deductions from gross income in computing adjusted gross income for purposes of that law, and provides that no deduction is allowed for any fine or similar penalty paid to a government for the violation of any law, as provided. This bill, for the taxable years beginning on and after January 1, 2020, would not allow a deduction for expenses or expenditures by an electrical corporation or a gas corporation that the Public Utilities Commission identified in a decision to penalize the electrical or gas corporation for a safety violation. For any taxable year for which those expenses or expenditures are paid or incurred, the bill would require an electrical corporation or a gas corporation to provide with the return a certification, under penalty of perjury, that none of those expenses or expenditures were taken into account, directly or indirectly, in determining the amount of income of the electrical or gas corporation, or any other related taxpayer, for purposes of the Corporation Tax Law for that taxable year. The bill, if the electrical or gas corporation seeks to recover moneys for those taxes, would require the electrical or gas corporation to recover those moneys from shareholders and not the ratepayers. By expanding the scope of the crime of perjury, this bill would impose a state-mandated local program. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. This bill would declare that it is to take effect immediately as an urgency statute.