Where do i enter seismic retrofit expense

[cl080141]

According to the bill -

This bill, for taxable years beginning on or after January 1, 2017, and before January 1, 2022, would allow a tax credit under both laws in an amount equal to 30% of the qualified costs paid or incurred by a qualified taxpayer for any seismic retrofit construction on a qualified building, as provided.

[RobertB4444]

@cl080141  Yes.  A qualified building is not a residential home, however.  That credit is for businesses, not individuals.

[cl080141]

The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.  Where does it qualify residential vs. corporate/business ?  I checked with CA. tax and was told to submit a 540a form to claim the 30% - 

[DMarkM1]

As stated earlier there is no seismic retrofit credit on the CA Form 540 or in the instructions.  A form 540A is a short form version with limited income sources and limited deductions and credits.  However the Form 540 has all the income sources and credits available in CA.    

 As noted earlier according to the instructions for the CA form 540:  Financial Incentive for Seismic Improvement – Taxpayers can exclude from gross income any amount received as loan forgiveness, grant, credit, rebate, voucher, or other financial incentive issued by the California Residential Mitigation Program or the California Earthquake Authority to assist a residential property owner or occupant with expenses paid, or obligations incurred, for earthquake loss mitigation. Additional information can be found in the instructions for California Schedule CA (540).

If you received such a grant and it was included in your Federal Adjusted gross income for 2021 you can use a subtraction in your CA return.  In your CA state interview continue to the page titled " Here's the income CA handles differently."  Scroll to the bottom for topic "Other Adjustments to income."  

[bonbon23]

Hi - because of COVID the work wasn't done until 2021.  He is insisting that it's deductible for 2021.  Thanks

[RobertB4444]

@bonbon23  Either he is mistaken, he thinks you're a business or he knows something that no one else seems to.  I would ask him to provide you with some further information.

[Edited 3/3/22 RobertB4444]