SB 1073

Bill Subjects

Abstract

The Personal Income Tax Law and the Corporation Tax Law, by reference to a specified federal statute, allow a credit against taxes imposed by those laws for increasing research expenses, as defined. In general, the amount of the credit under both laws is equal to 15% of the excess of the qualified research expenses, as defined, for the taxable year over the base amount, as defined, and, in addition, for purposes of the Corporation Tax Law, 24% of the basic research payments, as defined. The term "base amount" means the product of the average annual gross receipts of the taxpayer for each of the specified years preceding the taxable year and the fixed-base percentage, as defined, but in no event less than 50% of the qualified research expenses for the taxable year. This bill would, under both laws, for each taxable year beginning on or after January 1, 2010, provide that the credit for increasing research expenses shall be equal to 20% of the qualified research expenses with respect to green technology and renewable energy research and development costs, as provided. This bill would provide that new and additional credits allowable for specified taxable years would be allowed only against the taxes imposed for taxable years beginning on or after January 1, 2014, as prescribed. This bill would take effect immediately as a tax levy.