Proposition 7

Air Quality Improvement. Tax Credits.

November 03, 1998

 


This measure provides tax credits to individuals and corporations for certain expenditures they make that reduce emissions of pollutants into the air. For example, a trucking company that modifies the engines on its older, heavy-duty diesel trucks so that the fuel burns more cleanly could be eligible for a tax credit under the measure. A tax credit reduces the amount of taxes paid to the state by an individual or corporation. Under the measure, a maximum total of $218 million in tax credits would be available for award each fiscal year until January 1, 2011. This maximum amount may be reduced under specified circumstances when there is a drop in the state's General Fund revenues. Credits not awarded in one year may be carried over and awarded in a later year.