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SB-85 Personal income and bank and corporation taxes: credits: qualified wages.(1999-2000)

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SB85:v98#DOCUMENT

Amended  IN  Senate  April 15, 1999

CALIFORNIA LEGISLATURE— 1999–2000 REGULAR SESSION

Senate Bill
No. 85

Introduced  by  Senator Knight
 (Coauthor(s): Senator Rainey)
 (Coauthor(s): Assembly Member House, Leach, Robert Pacheco, Runner)

December 07, 1998

An act to add and repeal Sections 17053.38, 17053.39, 23638, and 23639 17053.38 and 23638 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.


LEGISLATIVE COUNSEL'S DIGEST


SB 85, as amended, Knight. Personal income and bank and corporation taxes: credits: VentureStar spacecraft qualified wages.
The Personal Income Tax Law and the Bank and Corporation Tax Law authorize various credits against the taxes imposed by those laws.

This bill would authorize a credit against those taxes for each taxable and income year beginning on or after January 1, 2001, and before January 1, 2006, in an amount equal to a specified percentage of the qualified wages, as defined, paid or incurred during the taxable or income year or in connection with an initial contract or subcontract to manufacture property for ultimate use at a VentureStar launch site or in the manufacture of a VentureStar spacecraft, as specified. This bill would also authorize a credit against those taxes for each taxable and income year beginning on or after January 1, 2001, and before January 1, 2006, in an amount equal to 10% of the qualified cost, as provided, of property for use in the manufacture of a product for ultimate use at a VentureStar launch site or in the manufacture of a VentureStar spacecraft, as specified, that is placed in service in this state.

This bill would authorize a credit against those taxes for each taxable and income year beginning on or after January 1, 2000, and before January 1, 2006, in an amount equal to 10% of the amount paid or incurred during the taxable or income year by a qualified taxpayer for qualified wages which, in general, would be for services related to engineering, design, and manufacture of a reusable launch vehicle or site therefor.This bill would take effect immediately as a tax levy.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

Section 17053.38 is added to the Revenue

SECTION 1.

 Section 17053.38 is added to the Revenue and Taxation Code, to read:

17053.38.
 (a) For each taxable year beginning on or after January 1, 2000, and before January 1, 2006, there shall be allowed as a credit against the “net tax,” as defined in Section 17039, an amount equal to 10 percent of the amount paid or incurred during the taxable year by a qualified taxpayer for qualified wages.
(b) For purposes of this section:
(1) “Qualified taxpayer” means any taxpayer, including any subcontractor, engaged in the engineering, design, and manufacture of a Reusable Launch Vehicle or of any launch site for that kind of vehicle.
(2) “Qualified wages” means any wages paid or incurred by a qualified taxpayer to any employee of the taxpayer for performing any services related to the activities specified in paragraph (1) located in this state.
(c) 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 year, and the succeeding seven years if necessary, until the credit is exhausted.
(d) This section shall remain in effect only until December 1, 2006, and as of that date is repealed.

SEC. 2.

 Section 23638 is added to the Revenue and Taxation Code, to read:

23638.
 (a) For each income year beginning on or after January 1, 2000, and before January 1, 2006, there shall be allowed as a credit against the “tax,” as defined in Section 23036, an amount equal to 10 percent of the amount paid or incurred during the income year by a qualified taxpayer for qualified wages.
(b) For purposes of this section:
(1)“Qualified taxpayer” means any taxpayer, including any subcontractor, engaged in the engineering, design, and manufacture of a Reusable Launch Vehicle or of any launch site for that kind of vehicle.
(2) “Qualified wages” means any wages paid or incurred by a qualified taxpayer to any employee of the taxpayer for performing any services related to the activities specified in paragraph (1) located in this state.
(c) 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 year, and the succeeding seven years if necessary, until the credit is exhausted.
(d) This section shall remain in effect only until December 1, 2006, and as of that date is repealed.

SEC. 3.

 This act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect.