Taxation: credits: apportionment: sales factor.

The Personal Income Tax Law and the Corporation Tax Law authorize various credits against the taxes imposed by those laws. This bill would authorize a credit against those taxes for taxable years beginning on or after January 1, 2011, in an amount equal to a specified percentage of the qualified expenditures, as defined, attributable to the production of a qualified motion picture in California, or, where the qualified motion picture has relocated to California or is an independent film, as provided. This bill would authorize the sale of credits, attributable to an independent film, to an unrelated party. This bill would, until for taxable years beginning on or after January 1, 2011, in lieu of the credits authorized under the Personal Income Tax Law and the Corporation Tax Law for qualified motion pictures, allow a credit against qualified state sales and use taxes, as provided. This bill would impose specified duties on the California Film Commission, the Franchise Tax Board, and the State Board of Equalization, in administering the credits. This bill would require the Business, Transportation and Housing Agency to report to the Legislature regarding the economic impact of specified tax incentives created by the bill, as specified. This bill would, for taxable years beginning on or after January 1, 2009, and before January 1, 2011, authorize a credit, under both laws, in an amount equal to $3,000, prorated as provided, for each full-time employee hired during the taxable year by a qualified employer, as defined. The Corporation Tax Law imposes taxes measured by income and, in the case of a business with income derived from or attributable to sources both within and without this state, apportions the income between this state and other states and foreign countries in accordance with a specified 4-factor formula based on the property, payroll, and sales within and without this state, except that in the case of an apportioning trade or business that derives more than 50% of its gross business receipts from conducting one or more qualified business activities, as defined, business income is apportioned in accordance with a specified 3-factor formula. This bill would, for taxable years beginning on or after January 1, 2011, allow a taxpayer to have that income apportioned in accordance with a single sales factor formula, except as provided. The California Constitution authorizes the Governor to declare a fiscal emergency and to call the Legislature into special session for that purpose. The Governor issued a proclamation declaring a fiscal emergency, and calling a special session for this purpose, on December 19, 2008. This bill would state that it addresses the fiscal emergency declared by the Governor by proclamation issued on December 19, 2008, pursuant to the California Constitution. This bill would take effect immediately as a tax levy.