6377.
(a) On and after January 1, 2012, there are exempted from the taxes imposed by this part the gross receipts from the sale of, and the storage, use, or other consumption in this state of, any of the following by a qualified person:(1) Tangible personal property that will become an ingredient or component part of tangible personal property primarily manufactured, processed, fabricated, or used in research and development activities.
(2) Tangible personal property directly and primarily used or consumed in or during the actual manufacturing, processing, fabrication, or research and development of tangible personal property if the use or consumption of the property is necessary or essential to the manufacturing, processing, fabrication operation, or research and development.
(3) Semiconductor, pharmaceutical or biotechnology fabrication, or research and development clean rooms and equipment.
(b) For the purposes of this section, all of the following apply:
(1) “Component” means ____.
(2) “Consumed” means ____.
(3) “Consumption” means ____.
(4) “Development” means ____.
(5) “Directly” means ____.
(6) “Fabricated” means ____.
(7) “Fabricating” means ____.
(8) “Fabrication” means ____.
(9) “Ingredient” means ____.
(10) “Manufactured” means ____.
(11) “Manufacturing” means ____.
(12) “Process” means ____.
(13) “Processed” means ____.
(14) “Processing” means ____.
(15) “Qualified person” ____.
(16) “Qualified tangible personal property” means ____.
(17) “Research” means ____.
(18) “Semiconductor, pharmaceutical or biotechnology fabrication, or research and development clean rooms and equipment” means ____:
(c) No exemption shall be allowed under this section unless the purchaser furnishes the retailer with an exemption certificate, completed in accordance with any instructions or regulations as the board may prescribe, and the retailer subsequently furnishes the board with a copy of the exemption certificate. The exemption certificate shall contain the sales price of the machinery or equipment that is exempt pursuant to subdivision (a).
(d) (1) Notwithstanding any provision of the Bradley-Burns Uniform Local Sales and Use Tax Law (Part 1.5 (commencing with Section 7200)) or the Transactions and Use Tax Law (Part 1.6 (commencing with Section 7251)), the exemption established by this section shall not apply with respect to any tax levied by a county, city, or district pursuant to, or in accordance with, either of those laws.
(2) Notwithstanding subdivision (a), the exemption established by this section shall not apply with respect to any tax levied pursuant to Sections 6051.2 and 6201.2, or pursuant to Section 35 of Article XIII of the California Constitution.
(e) Notwithstanding subdivision (a), the exemption provided by this section shall not apply to any sale or use of property that, within one year from the date of purchase, is either removed from California, converted from an exempt use under subdivision (a) to some other use not qualifying for the exemption, or used in a manner not qualifying for the exemption.
(f) If a purchaser certifies in writing to the seller that the property purchased without payment of the tax will be used in a manner entitling the seller to regard the gross receipts from the sale as exempt from the sales tax, and within one year from the date of purchase, the purchaser (1) removes that property from California, (2) converts that property for use in a manner not qualifying for the exemption, or (3) uses that property in a manner not qualifying for the exemption, the purchaser shall be liable for payment of sales tax, with applicable interest, as if the purchaser were a retailer making a retail sale of the property at the time the property is so removed, converted, or used, and the sales price of the property to the purchaser shall be deemed the gross receipts from that retail sale.
(g) This section applies to leases of tangible personal property classified as “continuing sales” and “continuing purchases” in accordance with Sections 6006.1 and 6010.1. The exemption established by this section shall apply to the rentals payable pursuant to such a lease, provided the lessee is a qualified person and the property is used in an activity described in subdivision (a). Rentals that meet the foregoing requirements are eligible for the exemption for a period of six years from the date of commencement of the lease. At the close of the six-year period from the date of commencement of the lease, lease receipts are subject to tax without exemption.