A ballot initiative approved by California voters last week known as Proposition 26 may mean that federal Section 1603 renewable energy tax credit cash grants will soon be treated as taxable income. The bill, as proposed, would repeal S.B. 401, a bill passed in April that excluded Section 1603 grants from taxable income in California. Prop. 26 requires that state laws adopted between January 1 and November 2, 2010 and that result in a tax increase will be repealed as of Nov. 2, 2011, unless lawmakers pass them again with a two-thirds vote. Read More…