The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. This bill, for taxable years beginning on or after January 1, 2027, and before January 1, 2032, would allow a credit against the taxes imposed by those laws for specified agricultural businesses that operate on at least 50 acres of land, as provided, equal to 25% of the business's qualified expenditures, as defined. The bill would increase the credit to 30% of qualified expenditures if the taxpayer purchases specified low-emission equipment or the qualified taxpayer has qualified expenditures related to operations in a high or very high fire hazard severity zone, as specified. The bill would limit the credit to no more than $1,000,000. The bill would cap the aggregate amount of the credit allowed at $250,000,000 for each taxable year, and would require a taxpayer to request a credit reservation from the Department of Food and Agriculture, as provided. The bill would require the Department of Food and Agriculture to coordinate with the Franchise Tax Board for the administration of the credit. The bill would require the Franchise Tax Board and the Department of Food and Agriculture to share specified information, and would make the unauthorized disclosure of that information a misdemeanor. By expanding the scope of a crime, this bill would impose a state-mandated local program. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill would also include additional information required for any bill authorizing a new tax expenditure. The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act for a specified reason. This bill would take effect immediately as a tax levy.
Tags
Agriculture
Existing state sales and use tax laws impose a tax on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state of, 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 an exemption for the sale of, or the storage, use, or consumption of, farm equipment and machinery, and the parts thereof, purchased for use by a qualified person to be used primarily in producing and harvesting agricultural products. 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. Amendments to the Sales and Use Tax Law are automatically incorporated into the local tax laws. Existing law excludes the tax exemption described above from being incorporated into certain local taxes pursuant to the Bradley-Burns Uniform Local Sales and Use Tax Law. This bill would, until January 1, 2032, delete that provision. Existing law requires the state to reimburse counties and cities for revenue losses caused by the enactment of sales and use tax exemptions. This bill would make an appropriation from the General Fund to the Controller to make the reimbursements to counties and cities. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific purposes that the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill also would include additional information required for any bill authorizing a new tax expenditure. This bill would take effect immediately as a tax levy.
