Air Quality Improvement. Tax Credits. Initiative Statute.
	Official Title and Summary prepared by the Attorney General
Full Text of Proposed Law	AIR QUALITY IMPROVEMENT. TAX CREDITS. INITIATIVE STATUTE.

• Authorizes State Air Resources Board and delegated air pollution control districts to award $218 million in state tax credits annually until January 2011, to encourage air-emissions reduction through acquisition, conversion, and retrofitting of:
  -- vehicles, buses, and heavy-duty trucks;
  -- hearth products;
  -- construction vehicles and equipment;
  -- lawn and garden equipment;
  -- ambient air pollution destruction technology;
  -- off-road, nonrecreational vehicles;
  -- port equipment;
  -- agricultural waste and rice straw conversion facilities;
  and through research and development.
• Requires study of air quality market-based incentive program for prescribed burning projects.
• Establishes local transportation funds as trust funds.

Summary of Legislative Analyst's
Estimate of Net State and Local Government Fiscal Impact:

• Annual net state revenue loss due to new tax credits, averaging in the range of tens of millions to over a hundred million dollars, from 1999 to beyond 2010. Increase in local sales tax revenues, potentially in the millions of dollars annually through 2010-11.
• State costs of up to $4.7 million annually through 2010-11 to administer new tax credit program.
• Potential long-term savings to state and local governments, of an unknown amount, in health care expenditures.

Argument in Favor of Proposition 7

Rebuttal to Argument in Favor of Proposition 7

Argument Against Proposition 7

Rebuttal to Argument Against Proposition 7

Full Text of Proposition 7