Income taxes: credits: manufacturers' machinery and equipment.

The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. Existing law provides that, except as specified, the total credits allowable under those laws may not reduce the taxes imposed by those laws by more than $5,000,000, as provided, for taxable years beginning on or after January 1, 2020, and before January 1, 2023. Existing law requires any bill authorizing a new tax expenditure to contain, among other things, specific goals, purposes, and objectives the tax expenditure will achieve, detailed performance indicators, and data collection requirements. This bill would establish credits against the taxes imposed by those laws for taxable years beginning on or after January 1, 2021, and before January 1, 2032, in an amount equal to a specified percentage of the amount paid or incurred during the taxable year by a qualified taxpayer, as defined, for qualified personal tangible property, defined, in part, to include machinery and equipment, up to $1,000,000. The bill would exclude these credits from the $5,000,000 tax reduction cap described above. The bill would also include additional information required for any bill authorizing a new tax expenditure. This bill would take effect immediately as a tax levy.