Bill Text: CA AB2770 | 2021-2022 | Regular Session | Amended
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Income tax: credits: Export Investment Act of 2022.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-05-19 - In committee: Held under submission. [AB2770 Detail]
Download: California-2021-AB2770-Amended.html
An act to amend Section 95 of the Revenue and Taxation Code, relating to taxation. An act to add and repeal Sections 17060, 17060.5, 23660, and 23660.5 of the Revenue and Taxation Code, relating to taxation.
NOYES
Local Program:
NO
SECTION 1. Section 95 of the Revenue and Taxation Code is amended to read: 95.
Bill Title: Income tax: credits: Export Investment Act of 2022.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2022-05-19 - In committee: Held under submission. [AB2770 Detail]
Download: California-2021-AB2770-Amended.html
|
Amended
IN
Assembly
March 24, 2022 |
CALIFORNIA LEGISLATURE—
2021–2022 REGULAR SESSION
Assembly Bill
No. 2770
| Introduced by Assembly Member Villapudua |
February 18, 2022 |
LEGISLATIVE COUNSEL'S DIGEST
AB 2770, as amended, Villapudua.
Local government finance. Income tax: credits: Export Investment Act of 2022.
The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.
This bill would allow a credit against those taxes for each taxable year beginning on or after January 1, 2021, and before January 1, 2027, to a qualified taxpayer in an amount equal to the product of $1.50 and the number of tons of additional qualified cargo moved by the qualified taxpayer in the taxable year. The bill would require a qualified taxpayer to submit an application, as specified, to the Franchise Tax Board for certification of qualified cargo, and would require the applicant to pay an application fee, as specified. The bill would limit the total aggregate amount of the credit awarded in a taxable year, as specified,
and would authorize the Franchise Tax Board to reduce the credit formula, as necessary, if the number of applicants exceeds the total aggregate amount of the credit authorized.
This bill would also allow a credit against those taxes for each taxable year beginning on or after January 1, 2021, and before January 1, 2023, to a qualified taxpayer in an amount equal to the product of $30 and the number of pieces of hired export equipment by the qualified taxpayer in the taxable year. The bill would require a qualified taxpayer to submit an application, as specified, to the Franchise Tax Board for certification of qualified hired equipment, and would require the taxpayer to pay an additional fee, as specified. The bill would limit the total aggregate amount of the credit awarded in a taxable year, as specified, and would authorize the Franchise Tax Board to reduce the credit formula, as necessary.
Existing law
requires any bill authorizing a new tax credit to contain, among other things, specific goals, purposes, and objectives that the tax credit will achieve, detailed performance indicators, and data collection requirements.
This bill would include additional information required for any bill authorizing a new income tax credit.
This bill would make findings and declarations related to a gift of public funds.
Existing property tax law requires the county auditor, in each fiscal year, to apportion property tax revenues to local jurisdictions in accordance with specified formulas and procedures, and generally requires that each jurisdiction be allocated an amount equal to the total of the amount of revenue allocated to that jurisdiction in the prior fiscal year, subject to certain modifications, and that jurisdiction’s portion of the annual tax increment, as defined. Existing law defines various terms for these purposes.
This bill would make nonsubstantive changes to the provision setting forth those definitions.
Digest Key
Vote: MAJORITY Appropriation: NO Fiscal Committee:Bill Text
The people of the State of California do enact as follows:
SECTION 1.
This act shall be known as the Export Investment Act of 2022.SEC. 2.
The Legislature finds and declares all of the following:(a) California is experiencing the effects of an unprecedented global supply chain crisis with disruptions to the movement of goods caused and exacerbated by the COVID-19 pandemic and surges in product demand that outstrip equipment supply and availability.
(b) The impacts on the global supply chain are increasing costs and threatening the access of California exporters to foreign markets, which in turn threatens the sustainable
economic growth of the state.
(c) The primary purpose of this act is to encourage the development and growth of California-originated export cargoes, improve access to foreign markets for California’s exported goods by reducing the real costs of transportation, and create and support jobs provided by California employers who are able to grow their export business and maintain their export market.
(d) California’s exporters and the international trade that they facilitate are critical components of the state economy, directly or indirectly employing millions of Californians, contributing billions of dollars in economic activity, and generating significant local and state tax revenues. As such, our exports must be given the ability to successfully compete and continue to grow.
(e) The development, improvement,
expansion, and maintenance of the state’s exportation of cargoes from farming, distribution, manufacturing, fabrication, assembly, processing, and warehousing sites in California are essential to the growth of the state’s economic well-being and the ability of those businesses and workers associated with trade-related industries to continue to compete cost-effectively on a regional, national, and global scale.
(f) The global pandemic has demonstrated that access to the global supply chain in times of excessive demand can be limited by extenuating factors beyond the control of Californians, and that the impacts of a lack of access to equipment, vessels, and foreign markets on the California exporter and the California export economy can be significant. California must be able to protect and nurture its exporters in the wake of the pandemic and assist exporters in weathering the increased costs of access to foreign markets.
SEC. 3.
Section 17060 is added to the Revenue and Taxation Code, to read:17060.
(a) For each taxable year beginning on or after January 1, 2021, and before January 1, 2027, there shall be allowed a credit against the “net tax,” as defined in Section 17039, to a qualified taxpayer in an amount equal to the product of one dollar and fifty cents ($1.50) and the number of tons of additional qualified cargo moved by the qualified taxpayer in the taxable year.(b) This section and Section 23660 shall be known as the Export Cargo Tax Credit.
(c) For purposes of this section:
(1) “Additional qualified cargo” means the amount of qualified cargo moved by a qualified taxpayer in the current taxable year
that exceeds the amount the cargo moved in the preceding taxable year.
(2) “Breakbulk or bulk cargo” means any nonliquid commodities, automobiles, trucks, lumber, agricultural products or commodities, machinery, equipment, materials, products, or other cargo transported as palletized or unpalletized bagged, packaged, wrapped, drummed, baled, or crated goods, or that are loaded in bulk directly into the hold of a ship that are shipped via oceangoing vessel. “Breakbulk or bulk cargo” does not include any liquid commodities handled in bulk or any containerized cargo.
(3) “Containerized cargo” means any machinery, equipment, materials, products, commodities, or any other cargo transported by containers, that are rigid, sealable, and reusable metal boxes built to a recognized international standard, in which goods are shipped via oceangoing vessel.
(4) “Export” means any breakbulk or bulk cargo or containerized cargo that is shipped in interstate or foreign commerce from the state to a foreign country or a domestic noncontiguous state or territory via oceangoing vessel.
(5) “Oceangoing vessel” means a vessel, ship, or barge engaged, for compensation, in transporting breakbulk or bulk cargo or containerized cargo in interstate or foreign commerce.
(6) “Public port” means any port or harbor operating under grant from the state, subject to the restrictions of the tidelands trust, or any other public port or harbor district established by a political subdivision of the state for the purposes of conducting interstate or foreign trade.
(7) “Qualified cargo” means any breakbulk or bulk cargo or
containerized cargo that is exported from a farming, manufacturing, fabrication, assembly, distribution, processing, or warehouse facility located in the state and that is moved by way of an oceangoing vessel berthed at a public port facility in the state during the taxable year and certified by the Franchise Tax Board as meeting the terms of this section. For purposes of this section, all agricultural products and commodities shipped from or to the state by way of an oceangoing vessel berthed at a public port facility in the state shall be considered qualified cargo.
(8) “Qualified taxpayer” means a commercial entity, all or a portion of whose activities involve the export of breakbulk or bulk cargo or containerized cargo to or from cargo facilities located within the state. For purposes of this section, a marine terminal, intermodal rail terminal, or truck terminal that handles cargo, but that is not a usual and regular final destination or
origination point of those cargoes, shall not be considered a qualified taxpayer.
(9) “Ton” means a net ton of 2,000 pounds and, for containerized cargo, shall exclude the weight of the container.
(d) (1) A qualified taxpayer seeking certification of qualified cargo shall submit, during the taxable year for which the credit is being sought, an application to the Franchise Tax Board that includes the following information:
(A) A verified statement of the estimated additional cargo volume data for the taxable year for which the credit is being sought and the cargo volumes for the taxable year prior to the taxable year of the application, specifically including the total annual volume and tons of breakbulk or containerized cargo exported from farming, manufacturing, fabrication, assembly,
distribution, processing, or warehousing facilities located in the state.
(B) Any other information required by the Franchise Tax Board.
(2) If the application is incomplete, The Franchise Tax Board may request additional information from the applicant prior to taking further action on the application.
(3) The applicant shall remit a fee paid to the Franchise Tax Board equal to the reasonable costs of the Franchise Tax Board’s review and evaluation of the application and certification.
(4) In order to receive certification, the applicant shall provide to the Franchise Tax Board a verified statement of the actual additional cargo volume data for the taxable year for which the credit is being sought when that data is available.
(5) The Franchise Tax Board may audit an applicant in order to verify claims presented to the Franchise Tax Board in the application.
(6) The Franchise Tax Board shall issue a certification for qualified cargo to a qualified taxpayer upon making a finding that the certification requirements are met.
(7) The Franchise Tax Board may develop a standard form and instructions to facilitate the submission of applications pursuant to this subdivision.
(e) (1) The total aggregate amount of the credit for the taxable year beginning on and after January 1, 2021, and before January 1, 2022, that may be awarded to all qualified taxpayers pursuant to this section and Section 23660 shall not exceed ninety million dollars ($90,000,000).
(2) The total aggregate amount of the credit for each taxable year beginning on and after January 1, 2022, that may be awarded to all qualified taxpayers pursuant to this section and Section 23660 shall be zero dollars ($0), plus the unallocated credit amount, if any, from the preceding calendar year, unless otherwise specified in the annual Budget Act.
(3) The dollar amount to be multiplied by the additional qualified cargo shall not exceed one dollar and fifty cents ($1.50). The Franchise Tax Board may reduce that dollar amount, equally for all qualified taxpayers, if the Franchise Tax Board believes that, due to the cumulative amount of certified cargo by the Franchise Tax Board under this section, the cumulative amount of the credit claimed by qualified taxpayers will exceed the total aggregate amount of the credit for that taxable year.
(4) The Franchise Tax Board shall post on its internet website the total aggregate amount of the credit authorized by the Legislature for the following taxable year and the expected dollar amount to be multiplied by the additional qualified cargo for that taxable year.
(f) (1) If the Franchise Tax Board finds that any claims regarding additional cargo for which a qualified taxpayer received credits were inaccurate, the qualified taxpayer shall remit the amount of the credit back to the Franchise Tax Board in a form and manner as specified by the Franchise Tax Board.
(2) Interest may be assessed and collected on recovered credits computed from the original due date of the return on which the credit was taken.
(3) The provisions of this
section shall be in addition to and shall not limit the authority of the Franchise Tax Board to assess or to collect under any other provision of law.
(g) In the case where the credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following taxable year, and succeeding years if necessary, until the credit is exhausted.
(h) The Franchise Tax Board may prescribe rules, guidelines, procedures, or other guidance to carry out the purposes of this section.
(i) For purposes of complying with Section 41, with respect to this section and Section 23660, the Legislative Analyst shall prepare, by January 1, 2027, an evaluation of the effectiveness of the Export Cargo Tax Credit. The report, submitted in compliance with Section 9795 of the Government Code, shall
include the overall impact of the credits, the amount of credits issued, the economic impact of the credits on jobs in the state, tax revenues, and the economy, and any other factors that describe the impact of the credits.
(j) This section shall remain in effect only until December 1, 2027, and as of that date is repealed.
SEC. 4.
Section 17060.5 is added to the Revenue and Taxation Code, to read:17060.5.
(a) For each taxable year beginning on or after January 1, 2021, and before January 1, 2023, there shall be allowed a credit against the “net tax,” as defined in Section 17039, to a qualified taxpayer in an amount equal to the product of thirty dollars ($30) and the number of pieces of hired export equipment by the qualified taxpayer in the taxable year.(b) This section and Section 23660.5 shall be known as the Export Equipment Access Tax Credit.
(c) For purposes of this section:
(1) “Breakbulk or bulk cargo” means any nonliquid commodities, automobiles, trucks, lumber, agricultural products or commodities,
machinery, equipment, materials, products, or other cargo transported as palletized or unpalletized bagged, packaged, wrapped, drummed, baled, or crated goods, or that are loaded in bulk directly into the hold of a ship that are shipped via oceangoing vessel. “Breakbulk or bulk cargo” does not include any liquid commodities handled in bulk or any containerized cargo.
(2) “Containerized cargo” means any machinery, equipment, materials, products, commodities, or any other cargo transported by containers, that are rigid, sealable, and reusable metal boxes built to a recognized international standard, in which goods are shipped via oceangoing vessel.
(3) “Export” means any breakbulk or bulk cargo or containerized cargo that is shipped in interstate or foreign commerce from the state to a foreign country or a domestic noncontiguous state or territory via oceangoing vessel.
(4) “Export equipment” means any chassis used by an exporter to move an empty intermodal container which is subsequently loaded and taken to a marine terminal located within the state for export.
(5) “Hired export equipment” shall mean any piece of export equipment that is hired for utilization in a nonrevenue repositioning prior to the equipment being utilized for an export move.
(6) “Nonrevenue repositioning” means a repositioning of a chassis for hire which has no other transaction associated with its movement. Nonrevenue repositioning does not include any component of the hire of the export equipment to facilitate the move of an empty container that is paid by any third party other than the qualified taxpayer seeking a credit pursuant to this section.
(7) “Oceangoing vessel” means a vessel, ship, or barge engaged, for compensation, in transporting breakbulk or bulk cargo or containerized cargo in interstate or foreign commerce.
(8) “Qualified taxpayer” means a commercial entity, all or a portion of whose activities involve the export of breakbulk or bulk cargo or containerized cargo to or from cargo facilities located within the state. For purposes of this section, a marine terminal, intermodal rail terminal, or truck terminal that handles cargo, but that is not a usual and regular final destination or origination point of those cargoes, shall not be considered a qualified taxpayer.
(d) (1) A qualified taxpayer seeking certification of qualified pieces of hired equipment shall submit, during the taxable year for which the credit is being sought, an application to the Franchise Tax Board that
includes the following information:
(A) A verified statement of the estimated number of qualified pieces of hired equipment used in the year.
(B) A verified statement of the estimated number of export moves associated with the equipment hires.
(C) Any other information required by the Franchise Tax Board.
(2) If the information submitted pursuant to this subdivision is incomplete, the Franchise Tax Board may request additional information from the qualified taxpayer.
(3) The qualified taxpayer shall remit a fee to the Franchise Tax Board equal to the reasonable costs of the Franchise Tax Board’s review and evaluation of the application and certification.
(4) In order to receive certification, the applicant shall provide to the Franchise Tax Board all of the following when that data is available:
(A) A summary of the number of qualified pieces of hired equipment used in the year accompanied by a verified statement and history of the equipment hires.
(B) A summary of the number of export moves associated with the equipment hires accompanied by a verified statement and history of the export moves.
(C) A verified statement correlating each piece of equipment to each export move.
(5) The Franchise Tax Board may audit a qualified taxpayer in order to verify claims presented in the submitted information.
(6) The Franchise Tax Board shall issue a certification for qualified pieces of hired equipment to a qualified taxpayer upon making a finding that the certification requirements are met.
(7) The Franchise Tax Board may develop a standard form and instructions to facilitate the submission of information pursuant to this subdivision.
(e) (1) The total aggregate amount of the credit for the taxable year beginning on and after January 1, 2021, and before January 1, 2022 that may be awarded to all qualified taxpayers pursuant to this section and Section 23660.5 shall not exceed eighty-one million dollars ($81,000,000).
(2) The total aggregate amount of the credit for each taxable year beginning on and after January 1, 2022, that may be
awarded to all qualified taxpayers pursuant to this section and Section 23660.5 shall be zero dollars ($0), plus the unallocated credit amount, if any, from the preceding calendar year, unless otherwise authorized in the annual Budget Act.
(3) The dollar amount to be multiplied by the number of pieces of hired export equipment shall not exceed thirty dollars ($30). The Franchise Tax Board may reduce that dollar amount, equally for all qualified taxpayers, if the Franchise Tax Board believes that, due to the cumulative amount of certified hired export equipment by the Franchise Tax Board under this section, the estimated cumulative amount of the credit claimed by qualified taxpayers will exceed the total aggregate amount of the credit authorized in the Budget Act for that taxable year.
(4) The Franchise Tax Board shall post on its internet website the total aggregate amount of the
credit authorized by the Legislature for the following taxable year and the expected dollar amount to be multiplied by the number of pieces of hired export equipment for that taxable year.
(f) (1) If the Franchise Tax Board finds that any claims regarding additional cargo for which a qualified taxpayer received credits were inaccurate, the qualified taxpayer shall remit the amount of the credit back to the Franchise Tax Board in a form and manner as specified by the Franchise Tax Board.
(2) Interest may be assessed and collected on recovered credits computed from the original due date of the return on which the credit was taken.
(3) The provisions of this section shall be in addition to and shall not limit the authority of the Franchise Tax Board to assess or to collect under any other provision
of law.
(g) In the case where the credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following taxable year, and succeeding years if necessary, until the credit is exhausted.
(h) The Franchise Tax Board may prescribe rules, guidelines, procedures, or other guidance to carry out the purposes of this section.
(i) For purposes of complying with Section 41, with respect to this section and Section 23660.5, the Legislative Analyst shall prepare, by January 1, 2023, an evaluation of the effectiveness of the Export Equipment Access Tax Credit. The report, submitted in compliance with Section 9795 of the Government Code, shall include the overall impact of the credits, the amount of credits issued, the economic impact of the credits on jobs in the state, tax
revenues, and the economy, and any other factors that describe the impact of the credits.
(j) This section shall remain in effect only until December 1, 2023, and as of that date is repealed.
SEC. 5.
Section 23660 is added to the Revenue and Taxation Code, to read:23660.
(a) For each taxable year beginning on or after January 1, 2021, and before January 1, 2027, there shall be allowed a credit against the “tax,” as defined in Section 23036, to a qualified taxpayer in an amount equal to the product of one dollar and fifty cents ($1.50) and the number of tons of additional qualified cargo moved by the qualified taxpayer in the taxable year.(b) This section and Section 17060 shall be known as the Export Cargo Tax Credit.
(c) For purposes of this section:
(1) “Additional qualified cargo” means the amount of qualified cargo moved by a qualified taxpayer in the current taxable year that
exceeds the amount the cargo moved in the preceding taxable year.
(2) “Breakbulk or bulk cargo” means any nonliquid commodities, automobiles, trucks, lumber, agricultural products or commodities, machinery, equipment, materials, products, or other cargo transported as palletized or unpalletized bagged, packaged, wrapped, drummed, baled, or crated goods, or that are loaded in bulk directly into the hold of a ship that are shipped via oceangoing vessel. “Breakbulk or bulk cargo” does not include any liquid commodities handled in bulk or any containerized cargo.
(3) “Containerized cargo” means any machinery, equipment, materials, products, commodities, or any other cargo transported by containers, that are rigid, sealable, and reusable metal boxes built to a recognized international standard, in which goods are shipped via oceangoing vessel.
(4) “Export” means any breakbulk or bulk cargo or containerized cargo that is shipped in interstate or foreign commerce from the state to a foreign country or a domestic noncontiguous state or territory via oceangoing vessel.
(5) “Oceangoing vessel” means a vessel, ship, or barge engaged, for compensation, in transporting breakbulk or bulk cargo or containerized cargo in interstate or foreign commerce.
(6) “Public port” means any port or harbor operating under grant from the state, subject to the restrictions of the tidelands trust, or any other public port or harbor district established by a political subdivision of the state for the purposes of conducting interstate or foreign trade.
(7) “Qualified cargo” means any breakbulk or bulk cargo or containerized
cargo that is exported from a farming, manufacturing, fabrication, assembly, distribution, processing, or warehouse facility located in the state and that is moved by way of an oceangoing vessel berthed at a public port facility in the state during the taxable year and certified by the Franchise Tax Board as meeting the terms of this section. For purposes of this section, all agricultural products and commodities shipped from or to the state by way of an oceangoing vessel berthed at a public port facility in the state shall be considered qualified cargo.
(8) “Qualified taxpayer” means a commercial entity, all or a portion of whose activities involve the export of breakbulk or bulk cargo or containerized cargo to or from cargo facilities located within the state. For purposes of this section, a marine terminal, intermodal rail terminal, or truck terminal that handles cargo, but that is not a usual and regular final destination or origination
point of those cargoes, shall not be considered a qualified taxpayer.
(9) “Ton” means a net ton of 2,000 pounds and, for containerized cargo, shall exclude the weight of the container.
(d) (1) A qualified taxpayer seeking certification of qualified cargo shall submit, during the taxable year for which the credit is being sought, an application to the Franchise Tax Board that includes the following information:
(A) A verified statement of the estimated additional cargo volume data for the taxable year for which the credit is being sought and the cargo volumes for the taxable year prior to the taxable year of the application, specifically including the total annual volume and tons of breakbulk or containerized cargo exported from farming, manufacturing, fabrication, assembly, distribution,
processing, or warehousing facilities located in the state.
(B) Any other information required by the Franchise Tax Board.
(2) If the application is incomplete, The Franchise Tax Board may request additional information from the applicant prior to taking further action on the application.
(3) The applicant shall remit a fee paid to the Franchise Tax Board equal to the reasonable costs of the Franchise Tax Board’s review and evaluation of the application and certification.
(4) In order to receive certification, the applicant shall provide to the Franchise Tax Board a verified statement of the actual additional cargo volume data for the taxable year for which the credit is being sought when that data is available.
(5) The Franchise Tax Board may audit an applicant in order to verify claims presented to the Franchise Tax Board in the application.
(6) The Franchise Tax Board shall issue a certification for qualified cargo to a qualified taxpayer upon making a finding that the certification requirements are met.
(7) The Franchise Tax Board may develop a standard form and instructions to facilitate the submission of applications pursuant to this subdivision.
(e) (1) The total aggregate amount of the credit for the taxable year beginning on and after January 1, 2021, and before January 1, 2022, that may be awarded to all qualified taxpayers pursuant to this section and Section 23660 shall not exceed ninety million dollars ($90,000,000).
(2) The total aggregate amount of the credit for each taxable year beginning on and after January 1, 2022, that may be awarded to all qualified taxpayers pursuant to this section and Section 17060 shall be zero dollars ($0), plus the unallocated credit amount, if any, from the preceding calendar year, unless otherwise specified in the annual Budget Act.
(3) The dollar amount to be multiplied by the additional qualified cargo shall not exceed one dollar and fifty cents ($1.50). The Franchise Tax Board may reduce that dollar amount, equally for all qualified taxpayers, if the Franchise Tax Board believes that, due to the cumulative amount of certified cargo by the Franchise Tax Board under this section, the cumulative amount of the credit claimed by qualified taxpayers will exceed the total aggregate amount of the credit for that taxable year.
(4) The Franchise Tax Board shall post on its internet website the total aggregate amount of the credit authorized by the Legislature for the following taxable year and the expected dollar amount to be multiplied by the additional qualified cargo for that taxable year.
(f) (1) If the Franchise Tax Board finds that any claims regarding additional cargo for which a qualified taxpayer received credits were inaccurate, the qualified taxpayer shall remit the amount of the credit back to the Franchise Tax Board in a form and manner as specified by the Franchise Tax Board.
(2) Interest may be assessed and collected on recovered credits computed from the original due date of the return on which the credit was taken.
(3) The provisions of this
section shall be in addition to and shall not limit the authority of the Franchise Tax Board to assess or to collect under any other provision of law.
(g) In the case where the credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “tax” in the following taxable year, and succeeding years if necessary, until the credit is exhausted.
(h) The Franchise Tax Board may prescribe rules, guidelines, procedures, or other guidance to carry out the purposes of this section.
(i) This section shall remain in effect only until December 1, 2027, and as of that date is repealed. However, any unused credit may continue to be carried forward, as provided in subdivision (g), until the credit is exhausted.
SEC. 6.
Section 23660.5 is added to the Revenue and Taxation Code, to read:23660.5.
(a) For each taxable year beginning on or after January 1, 2021, and before January 1, 2023, there shall be allowed a credit against the “tax,” as defined in Section 23036, to a qualified taxpayer in an amount equal to the product of thirty dollars ($30) and the number of pieces of hired export equipment by the qualified taxpayer in the taxable year.(b) This section and Section 17060.5 shall be known as the Export Equipment Access Tax Credit.
(c) For purposes of this section:
(1) “Breakbulk or bulk cargo” means any nonliquid commodities, automobiles, trucks, lumber, agricultural products or commodities,
machinery, equipment, materials, products, or other cargo transported as palletized or unpalletized bagged, packaged, wrapped, drummed, baled, or crated goods, or that are loaded in bulk directly into the hold of a ship that are shipped via oceangoing vessel. “Breakbulk or bulk cargo” does not include any liquid commodities handled in bulk or any containerized cargo.
(2) “Containerized cargo” means any machinery, equipment, materials, products, commodities, or any other cargo transported by containers, that are rigid, sealable, and reusable metal boxes built to a recognized international standard, in which goods are shipped via oceangoing vessel.
(3) “Export” means any breakbulk or bulk cargo or containerized cargo that is shipped in interstate or foreign commerce from the state to a foreign country or a domestic noncontiguous state or territory via oceangoing vessel.
(4) “Export equipment” means any chassis used by an exporter to move an empty intermodal container which is subsequently loaded and taken to a marine terminal located within the state for export.
(5) “Hired export equipment” shall mean any piece of export equipment that is hired for utilization in a nonrevenue repositioning prior to the equipment being utilized for an export move.
(6) “Nonrevenue repositioning” means a repositioning of a chassis for hire which has no other transaction associated with its movement. Nonrevenue repositioning does not include any component of the hire of the export equipment to facilitate the move of an empty container that is paid by any third party other than the qualified taxpayer seeking a credit pursuant to this section.
(7) “Oceangoing vessel” means a vessel, ship, or barge engaged, for compensation, in transporting breakbulk or bulk cargo or containerized cargo in interstate or foreign commerce.
(8) “Qualified taxpayer” means a commercial entity, all or a portion of whose activities involve the export of breakbulk or bulk cargo or containerized cargo to or from cargo facilities located within the state. For purposes of this section, a marine terminal, intermodal rail terminal, or truck terminal that handles cargo, but that is not a usual and regular final destination or origination point of those cargoes, shall not be considered a qualified taxpayer.
(d) (1) A qualified taxpayer seeking certification of qualified pieces of hired equipment shall submit, during the taxable year for which the credit is being sought, an application to the Franchise Tax Board that
includes the following information:
(A) A verified statement of the estimated number of qualified pieces of hired equipment used in the year.
(B) A verified statement of the estimated number of export moves associated with the equipment hires.
(C) Any other information required by the Franchise Tax Board.
(2) If the information submitted pursuant to this subdivision is incomplete, the Franchise Tax Board may request additional information from the qualified taxpayer.
(3) The qualified taxpayer shall remit a fee to the Franchise Tax Board equal to the reasonable costs of the Franchise Tax Board’s review and evaluation of the application and certification.
(4) In order to receive certification, the applicant shall provide to the Franchise Tax Board all of the following when that data is available:
(A) A summary of the number of qualified pieces of hired equipment used in the year accompanied by a verified statement and history of the equipment hires.
(B) A summary of the number of export moves associated with the equipment hires accompanied by a verified statement and history of the export moves.
(C) A verified statement correlating each piece of equipment to each export move.
(5) The Franchise Tax Board may audit a qualified taxpayer in order to verify claims presented in the submitted information.
(6) The Franchise Tax Board shall issue a certification for qualified pieces of hired equipment to a qualified taxpayer upon making a finding that the certification requirements are met.
(7) The Franchise Tax Board may develop a standard form and instructions to facilitate the submission of information pursuant to this subdivision.
(e) (1) The total aggregate amount of the credit for the taxable year beginning on and after January 1, 2021, and before January 1, 2022, that may be awarded to all qualified taxpayers pursuant to this section and Section 23660.5 shall not exceed eighty-one million dollars ($81,000,000).
(2) The total aggregate amount of the credit for each taxable year beginning on and after January 1, 2022, that may be
awarded to all qualified taxpayers pursuant to this section and Section 17060.5 shall be zero dollars ($0), plus the unallocated credit amount, if any, from the preceding calendar year, unless otherwise authorized in the annual Budget Act.
(3) The dollar amount to be multiplied by the number of pieces of hired export equipment shall not exceed thirty dollars ($30). The Franchise Tax Board may reduce that dollar amount, equally for all qualified taxpayers, if the Franchise Tax Board believes that, due to the estimated cumulative amount of certified hired export equipment by the Franchise Tax Board under this section, the cumulative amount of the credit claimed by qualified taxpayers will exceed the total aggregate amount of the credit authorized in the Budget Act for that taxable year.
(4) The Franchise Tax Board shall post on its internet website the total aggregate amount of the
credit authorized by the Legislature for the following taxable year and the expected dollar amount to be multiplied by the number of pieces of hired export equipment for that taxable year.
(f) (1) If the Franchise Tax Board finds that any claims regarding additional cargo for which a qualified taxpayer received credits were inaccurate, the qualified taxpayer shall remit the amount of the credit back to the Franchise Tax Board in a form and manner as specified by the Franchise Tax Board.
(2) Interest may be assessed and collected on recovered credits computed from the original due date of the return on which the credit was taken.
(3) The provisions of this section shall be in addition to and shall not limit the authority of the Franchise Tax Board to assess or to collect under any other provision
of law.
(g) In the case where the credit allowed by this section exceeds the “tax,” the excess may be carried over to reduce the “tax” in the following taxable year, and succeeding years if necessary, until the credit is exhausted.
(h) The Franchise Tax Board may prescribe rules, guidelines, procedures, or other guidance to carry out the purposes of this section.
(i) This section shall remain in effect only until December 1, 2023, and as of that date is repealed.
SEC. 7.
The Legislature hereby finds and declares that the tax credits authorized by Sections 17060, 17060.5, 23660, and 23660.5 of the Revenue and Taxation Code, as added by this act, serve the public purpose of alleviating the effects of the global supply chain crisis induced by the COVID-19 pandemic and providing immediate benefits to the impacted California exporter community to boost the competitiveness of the state economy, and do not constitute a gift of public funds within the meaning of Section 6 of Article XVI of the California Constitution.For purposes of this chapter, all of the following apply:
(a)“Local agency” means a city, county, and special district.
(b)(1)(A)“Jurisdiction” means a local agency, school district, community college district, or county superintendent of schools.
(B)A jurisdiction as defined in this subdivision is a “district” for purposes of Section 1 of Article XIII A of the California Constitution.
(2)For jurisdictions located in more than one county, the county auditor of each county in which that jurisdiction is located shall, for the purposes of computing the amount for that jurisdiction pursuant to this chapter, treat the portion of the jurisdiction located within that county as a separate jurisdiction.
(c)“Property tax revenue” includes the amount of state reimbursement for the homeowners’ exemption. “Property tax revenue” does not include the amount of property tax levied for the purpose of making payments for the interest and principal on either of the following:
(1)General obligation bonds or other indebtedness approved by the voters
before July 1, 1978, including tax rates levied pursuant to Part 10 (commencing with Section 15000) of Division 1 of, and Sections 39308 and 39311 and former Sections 81338 and 81341 of the Education Code, and Section 26912.7 of the Government Code.
(2)Bonded indebtedness for the acquisition or improvement of real property approved by two-thirds of the voters on or after June 4, 1986.
(d)“Taxable assessed value” means total assessed value minus all exemptions other than the homeowners’ and business inventory exemptions.
(e)(1)“Jurisdictional change” includes any change of organization, as defined in Section 56021 of the Government Code and a reorganization, as defined in Section 56073 of the Government Code. “Jurisdictional change” also includes any
change in the boundary of those special districts that are not under the jurisdiction of a local agency formation commission.
(2)“Jurisdictional change” also includes a functional consolidation where two or more local agencies, except two or more counties, exchange or otherwise reassign functions and any change in the boundaries of a school district or community college district or county superintendent of schools.
(f)“School entities” means school districts, community college districts, the Educational Revenue Augmentation Fund, and county superintendents of schools.
(g)(1)Except as otherwise provided in this subdivision, “tax rate area” means a specific geographic area all of which is within the jurisdiction of the same combination of local agencies and school entities for the current
fiscal year.
(2)In the case of a jurisdictional change pursuant to Section 99, the area subject to the change shall constitute a new tax rate area, except that if the area subject to change is within the same combinations of local agencies and school entities as an existing tax rate area, the two tax rate areas may be combined into one tax rate area.
(3)Existing tax rate areas having the same combinations of local agencies and school entities may be combined into one tax rate area. For the combination of existing tax rate areas, the factors used to allocate the annual tax increment pursuant to Section 98 shall be determined by calculating a weighted average of the annual tax increment factors used in the tax rate areas being combined.
(h)“State assistance payments” means:
(1)For counties, amounts determined pursuant to subdivision (b) of Section 16260 of the Government Code, increased by the amount specified for each county pursuant to Section 94 of Chapter 282 of the Statutes of 1979, with the resultant sum reduced by an amount derived by the calculation made pursuant to Section 16713 of the Welfare and Institutions Code.
(2)For cities, 82.91 percent of the amounts determined pursuant to subdivisions (b) and (i) of Section 16250 of the Government Code, plus for any city an additional amount equal to one-half of the amount of any outstanding debt as of June 30, 1978, for “museums” as shown in the Controller’s “Annual Report of Financial Transactions of Cities for Fiscal Year 1977–78.”
(3)For special districts, 95.24 percent of the amounts received pursuant to Chapter 3 (commencing with
Section 16270) of Part 1.5 of Division 4 of Title 2 of the Government Code, Section 35.5 of Chapter 332 of the Statutes of 1978, and Chapter 12 of the Statutes of 1979.
(i)“City clerk” means the clerk of the governing body of a city or city and county.
(j)“Executive officer” means the executive officer of a local agency formation commission.
(k)“City” means any city whether general law or charter, except a city and county.
(l)“County” means any chartered or general law county. “County” includes a city and county.
(m)“Special district” means any agency of the state for the local performance of governmental or proprietary functions within limited boundaries. “Special district” includes
a county service area, a maintenance district or area, an improvement district or improvement zone, or any other zone or area, formed for the purpose of designating an area within which a property tax rate will be levied to pay for a service or improvement benefiting that area. “Special district” includes the Bay Area Air Quality Management District. “Special district” does not include a city, a county, a school district, or a community college district. “Special district” does not include any agency that is not authorized by statute to levy a property tax rate. However, any special district authorized to levy a property tax by the statute under which the district was formed shall be considered a special district. Additionally, a county free library established pursuant to Article 1 (commencing with Section 19100) of Chapter 6 of Part 11 of Division 1 of Title 1 of the Education Code, and for which a property tax was levied in the 1977–78 fiscal year, shall be considered a special district.
(n)“Excess tax school entity” means an educational agency for which the amount of the state funding entitlement determined under subdivision (e), (f), or (g) of Section 2575, or Section 84750.4, 84750.5, or 84751 of the Education Code, as appropriate, is zero, and as described in subdivision (o) of Section 42238.02 of the Education Code, as implemented by Section 42238.03 of the Education Code.
