Taxes: exemption and credits: new aerospace projects.

Existing sales and use tax laws impose taxes on retailers measured by the gross receipts from the sale of tangible personal property sold at retail in this state, 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, and provides various exemptions from those taxes. Existing law exempts from those taxes, on and after July 1, 2014, and before January 1, 2022, the gross receipts from the sale of, and the storage, use, or other consumption of, qualified tangible personal property purchased by a qualified person for use primarily in manufacturing, processing, refining, fabricating, or recycling of property; qualified tangible personal property purchased for use by a contractor for specified purposes; and qualified tangible personal property purchased for use by a qualified person to be used primarily in research and development, as provided, and until January 1, 2021, the gross receipts from the sale of, and the storage, use, or other consumption of, qualified tangible personal property purchased by a qualified person for those purposes. This exemption does not apply to tangible personal property purchased during any calendar year that exceeds $200,000,000 of purchases of qualified tangible personal property for which an exemption is claimed by a qualified person. This bill would, from January 1, 2015, until January 1, 2018, impose a $300,000,000 limit, rather than a $200,000,000 limit, on exempt purchases of manufacturing and research and development equipment for use in a new aerospace project, as defined in this bill. The bill would, on January 1, 2017, require the Board of Equalization report to the Legislature on the amount of manufacturing and research and development equipment purchased for use in a new aerospace project since January 1, 2015. The bill would, on January 1, 2017, require the Employment Development Department to report to the Legislature on any increase in aerospace manufacturing employment since January 1, 2015. This bill would take effect immediately as a tax levy.