Assembly Bill 122 (Brown), as enacted on October 3, 1997, made the following changes to California law:
SUBJECT: Depreciation Deduction/Accelerated Cost Recovery System/Pierce’s Disease
Sections 17250 and 24349 of the Revenue and Taxation Code are amended.
This act expands provisions that allow accelerated depreciation for grapevines infested with phylloxera to grapevines infected with Pierce’s Disease. Specifically, this act provides accelerated depreciation rules for grapevines that are replaced in California vineyards as a direct result of Pierce’s Disease. These rules allow a shortened recovery period of five years instead of the general 10-year period. Also, these rules allow a 10-year alternative depreciation system (ADS) recovery period instead of the general 20-year ADS recovery period. This 10-year ADS recovery period also applies to the uniform capitalization rules and alternative minimum tax (AMT). Taxpayers claiming the accelerated depreciation rules for grapevines must obtain a written certification from an independent state-certified integrated pest management advisor or a state agricultural commissioner or advisor that specifies replanting was necessary to restore the vineyard.
This act applies to taxable or income years beginning on or after January 1, 1997.
This act was chaptered out by Senate Bill 455, which was chaptered after this act. However, since this act and Senate Bill 455 were double-joined and SB 455 contained the same provisions as this act, the enactment of SB 455 preserved the provisions of this act.
This act does not require any reports by the department to the Legislature.