AB 52 — Income tax credit: sales and use taxes paid: manufacturing equipment: research and development equipment.

Summary

Existing law, the Bradley-Burns Uniform Local Sales and Use Tax Law, authorizes counties and cities to impose local sales and use taxes in conformity with the Sales and Use Tax Law, and existing laws authorize districts, as specified, to impose transactions and use taxes in accordance with the Transactions and Use Tax Law, which generally conforms to the Sales and Use Tax Law. Exemptions from state sales and use taxes are automatically incorporated into the local tax laws. Existing law, the Sales and Use Tax Law, imposes state taxes on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, or on the storage, use, or other consumption in this state of tangible personal property purchased from a retailer for storage, use, or other consumption in this state. The Sales and Use Tax Law provides various exemptions from those taxes, including a partial exemption from those taxes, on and after July 1, 2014, and before July 1, 2030, for the gross receipts from the sale of, and the storage, use, or other consumption of, qualified tangible personal property, as defined, that is, among other things, purchased by a qualified person for use primarily in manufacturing, processing, refining, fabricating, or recycling of tangible personal property, as specified, or purchased for use by a qualified person to be used primarily in research and development. Existing law prohibits the exemption described above from applying with respect to any tax levied by a county, city, or district pursuant to, or in accordance with, the Bradley-Burns Uniform Local Sales and Use Tax Law or the Transactions and Use Tax Law, sales and use taxes imposed pursuant to certain provisions of the Sales and Use Tax Law, and sales and use taxes imposed pursuant to certain provisions of the California Constitution. The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. This bill would allow, for a taxable year beginning on or after January 1, 2025, and before January 1, 2030, a credit against those taxes to a taxpayer in an amount equal to the amount of tax reimbursement paid during the taxable year for sales tax on gross receipts that would be exempt from taxation under the Sales and Use Tax Law pursuant to the sales and use tax exemption described above but for the provision that prohibits that exemption from applying with respect to any tax levied by a county, city, or district pursuant to, or in accordance with, the Bradley-Burns Uniform Local Sales and Use Tax Law or the Transactions and Use Tax Law, sales and use taxes imposed pursuant to certain provisions of the Sales and Use Tax Law, and sales and use taxes imposed pursuant to certain provisions of the California Constitution. This bill would also allow for a taxable year beginning on or after January 1, 2025, and before January 1, 2030, a similar tax credit against those taxes to a taxpayer in an amount equal to the amount of use tax paid during the taxable year for storage, use, or other consumption that would be exempt from taxation under the Sales and Use Tax Law pursuant to the sales and use tax exemption described above but for the provision that prohibits that exemption from applying with respect to any tax levied by a county, city, or district pursuant to, or in accordance with, the Bradley-Burns Uniform Local Sales and Use Tax Law or the Transactions and Use Tax Law, sales and use taxes imposed pursuant to certain provisions of the Sales and Use Tax Law, and sales and use taxes imposed pursuant to certain provisions of the California Constitution. This bill would require, on or before May 14, 2025, and annually thereafter, the Department of Finance to provide to the legislative budget committees an estimate of the amount of revenue that would not be realized if the credits described above were allowed for that taxable year and would provide that those credits are allowed only for taxable years for which the Legislature appropriates money in the Budget Act for the administration of those credits. Existing law requires any bill authorizing a new tax credit to contain, among other things, specific goals that the tax credit will achieve, detailed performance indicators, and data collection requirements. This bill would make specified findings detailing the goal of the above-described tax credit, performance indicators for determining whether the credit meets that goal, and data collection requirements. This bill would take effect immediately as a tax levy.

Bill Text

• Enrolled 09/03/24 - Enrolled Current pdf September 03, 2024
• Amended 08/15/24 - Amended Senate pdf August 15, 2024
• Amended 06/15/23 - Amended Senate pdf June 15, 2023
• Amended 04/19/23 - Amended Assembly pdf April 19, 2023
• Amended 03/16/23 - Amended Assembly pdf March 16, 2023
• Introduced 12/05/22 - Introduced pdf December 05, 2022
• AB52 View text html

Action History

1. September 20, 2024

   Vetoed by Governor.

2. September 10, 2024

   Enrolled and presented to the Governor at 4:30 p.m.

3. August 29, 2024

   Senate amendments concurred in. To Engrossing and Enrolling. (Ayes 76. Noes 0.).

4. August 29, 2024

   Assembly Rule 77 suspended.

5. August 28, 2024

   In Assembly. Concurrence in Senate amendments pending. May be considered on or after August 30 pursuant to Assembly Rule 77.

6. August 28, 2024

   Read third time. Passed. Ordered to the Assembly. (Ayes 39. Noes 0.).

7. August 19, 2024

   Read second time. Ordered to third reading.

8. August 15, 2024

   Read second time and amended. Ordered returned to second reading.

9. August 15, 2024

   From committee: Amend, and do pass as amended. (Ayes 7. Noes 0.) (August 15).

10. September 01, 2023

    In committee: Held under submission.

11. June 26, 2023

    In committee: Referred to APPR. suspense file.

12. June 15, 2023

    Read second time and amended. Re-referred to Com. on APPR.

13. June 14, 2023

    From committee: Amend, and do pass as amended and re-refer to Com. on APPR. (Ayes 6. Noes 0.) (June 14).

14. May 31, 2023

    Referred to Com. on GOV. & F.

15. May 23, 2023

    In Senate. Read first time. To Com. on RLS. for assignment.

16. May 22, 2023

    Read third time. Passed. Ordered to the Senate. (Ayes 77. Noes 0. Page 1705.)

17. May 18, 2023

    Read second time. Ordered to third reading.

18. May 18, 2023

    From committee: Do pass. (Ayes 15. Noes 0.) (May 18).

19. May 18, 2023

    Joint Rule 62(a), file notice suspended. (Page 1580.)

20. May 17, 2023

    In committee: Set, first hearing. Referred to APPR. suspense file.

21. May 02, 2023

    From committee: Do pass and re-refer to Com. on APPR. (Ayes 11. Noes 0.) (May 1). Re-referred to Com. on APPR.

22. April 20, 2023

    Re-referred to Com. on REV. & TAX.

23. April 19, 2023

    From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.

24. April 18, 2023

    In committee: Set, second hearing. Referred to REV. & TAX. suspense file.

25. April 11, 2023

    In committee: Set, first hearing. Hearing canceled at the request of author.

26. March 20, 2023

    Re-referred to Com. on REV. & TAX.

27. March 16, 2023

    From committee chair, with author's amendments: Amend, and re-refer to Com. on REV. & TAX. Read second time and amended.

28. March 16, 2023

    Referred to Com. on REV. & TAX.

29. December 06, 2022

    From printer. May be heard in committee January 5.

30. December 05, 2022

    Read first time. To print.

Sponsors

• Timothy S. Grayson · Primary
• Mike A. Gipson · Cosponsor
• Blanca Pacheco · Cosponsor
• Cottie Petrie-Norris · Cosponsor
• Avelino Valencia · Cosponsor

Votes

Subjects