Manufacturers Research and Development Tax Credit Alert
By State Senator Lou Correa
I am pleased to share with you some good news that is expected to help grow the economy effectively by encouraging and rewarding the entrepreneurial spirit that made our state so great.
In 2013, legislation that was passed to reform tax credits and allowed California to effectively compete with other states and nations by redirecting approximately $750 million for job creation credits targeted toward high unemployment and high poverty areas of the state; establishing a new manufacturing sales tax exemptions; and establishing economic incentives for business who located anywhere in the state.
Major components of that legislation went into effect starting July 1st of 2014. Business are now allowed to exclude the first $200 Million in equipment purchases from 4.19 percent of the sales tax (the state share of the sales tax). I believe that these investments toward tax incentives help California manufacturing and biotech industries, and create of a transparent system for hiring credits to get more Californians back to work with middle-class jobs. To learn more about the eligibility requirements for these economic incentives please go to: http://www.boe.ca.gov/sutax/ manufacturing_exemptions.htm Continue reading