17060.
(a) For each taxable year beginning on or after January 1, 2023, and before January 1, 2027, there shall be allowed a credit against the “net tax,” as defined in Section 17039, to a qualified taxpayer in an amount equal to the product of one dollar and fifty cents ($1.50) ($1.50), except as provided in paragraph (3) of subdivision (e), and the number of tons of additional qualified cargo moved by the qualified taxpayer in the taxable year.(b) This section and Section 23660 shall be known as the Export Cargo
Tax Credit.
(c) For purposes of this section:
(1) “Additional qualified cargo” means the amount of qualified cargo moved by a qualified taxpayer in a taxable year
that exceeds the amount the qualified taxpayer moved in the preceding taxable year.
(2) “Breakbulk or bulk cargo” means any nonliquid commodities, automobiles, trucks, lumber, agricultural products or commodities, machinery, equipment, materials, products, or other cargo transported as palletized or unpalletized bagged, packaged, wrapped, drummed, baled, or crated goods, or that are loaded in bulk directly into the hold of a ship that are shipped via oceangoing vessel. “Breakbulk or bulk cargo” does not include any liquid commodities handled in bulk or any containerized cargo.
(3) “Containerized cargo” means any machinery, equipment, materials, products, commodities, or any other cargo transported by containers, that are rigid, sealable, and reusable metal boxes built
to a recognized international standard, in which goods are shipped via oceangoing vessel.
(4) “Export” means any breakbulk or bulk cargo or containerized cargo that is shipped in interstate or foreign commerce from the state to a foreign country or a domestic noncontiguous state or territory via oceangoing vessel.
(5) “Oceangoing vessel” means a vessel, ship, or barge engaged, for compensation, in transporting breakbulk or bulk cargo or containerized cargo in interstate or foreign commerce.
(6) “Public port” means any port or harbor operating under grant from the state, subject to the restrictions of the tidelands trust, or any other public port or harbor district established by a political subdivision of the state for the
purposes of conducting interstate or foreign trade.
(7) “Qualified cargo” means any breakbulk or bulk cargo or containerized cargo that is exported from a farming, manufacturing, fabrication, assembly, distribution, processing, or warehouse facility located in the state and that is moved by way of an oceangoing vessel berthed at a public port facility in the state during the taxable year and certified by the Franchise Tax Board as meeting the terms of this section. For purposes of this section, all agricultural products and commodities shipped from or to the state by way of an oceangoing vessel berthed at a public port facility in the state shall be considered qualified cargo.
(8) “Qualified taxpayer” means a commercial entity, all or a portion of whose activities involve the
export of breakbulk or bulk cargo or containerized cargo to or from cargo facilities located within the state. For purposes of this section, a marine terminal, intermodal rail terminal, or truck terminal that handles cargo, but that is not a usual and regular final destination or origination point of those cargoes, shall not be considered a qualified taxpayer.
(9) “Ton” means a net ton of 2,000 pounds and, for containerized cargo, shall exclude the weight of the container.
(d) (1) A To be eligible for the credit allowed by this section, a qualified taxpayer seeking certification of qualified cargo
shall submit, during the taxable year for which the credit is being sought, an application to the Franchise Tax Board that includes the following information:
(A) A verified statement of the estimated additional cargo volume data for the taxable year for which the credit is being sought and the cargo volumes for the taxable year prior to the taxable year of the application, specifically including the total annual volume and tons of breakbulk or containerized cargo exported from farming, manufacturing, fabrication, assembly,
distribution, processing, or warehousing facilities located in the state.
(B) Any other information required by the Franchise Tax Board.
(2) If the application is incomplete, The Franchise Tax Board may request additional information from the applicant prior to taking further action on the application.
(3) The applicant shall remit a fee paid to the Franchise Tax Board equal to the reasonable costs of the Franchise Tax Board’s review and evaluation of the application and certification.
(4) In order to receive certification, the applicant shall provide to the Franchise Tax Board a verified statement of the actual additional cargo volume data for the
taxable year for which the credit is being sought when that data is available.
(5) The Franchise Tax Board may audit an applicant in order to verify claims presented to the Franchise Tax Board in the application.
(6) The Franchise Tax Board shall issue a certification for qualified cargo to a qualified taxpayer upon making a finding that the certification requirements are met.
(7) The Franchise Tax Board may develop a standard form and instructions to facilitate the submission of applications pursuant to this subdivision.
(e) (1) The total aggregate amount of the credit for the taxable year beginning on and after January 1, 2023, and
before January 1, 2024, that may be awarded to all qualified taxpayers pursuant to this section and Section 23660 shall not exceed ninety million dollars ($90,000,000).
(2) The total aggregate amount of the credit for each taxable year beginning on and after January 1, 2024, that may be awarded to all qualified taxpayers pursuant to this section and Section 23660 shall be zero dollars ($0), plus the unallocated credit amount, if any, from the
preceding calendar year, unless otherwise specified in the annual Budget Act.
(3) The dollar amount to be multiplied by the additional qualified cargo shall not exceed one dollar and fifty cents ($1.50) per ton. The Franchise Tax Board may shall reduce that dollar amount, equally for all qualified taxpayers, if the Franchise Tax Board believes determines that, due to the cumulative amount of certified cargo
qualified cargo certified by the Franchise Tax Board under this section, the cumulative amount of the credit claimed by qualified taxpayers will exceed the total aggregate amount of the credit for that taxable year.
(4) The Franchise Tax Board shall post on its internet website the total aggregate amount of the credit authorized by the Legislature for the following taxable year and the expected estimated dollar amount to be multiplied by the additional qualified cargo for that taxable year.
(f) (1) If the Franchise Tax Board finds that any claims regarding
additional cargo for which a qualified taxpayer received credits were inaccurate, the qualified taxpayer shall remit the amount of the credit back to the Franchise Tax Board in a form and manner as specified by the Franchise Tax Board.
(2) Interest may be assessed and collected on recovered credits computed from the original due date of the return on which the credit was taken.
(3) The provisions of this section shall be in addition to and shall not limit the authority of the Franchise Tax Board to assess or to collect under any other provision of law.
(g) In the case where the credit allowed by this section exceeds the “net tax,” the excess may be carried over to reduce the “net tax” in the following taxable year, and up
to and including eight succeeding years if necessary, until the credit is exhausted.
(h) The Franchise Tax Board may prescribe rules, guidelines, procedures, or other guidance to carry out the purposes of this section. Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 of the Government Code shall not apply to any rule, guideline, or procedure prescribed by the Franchise Tax Board pursuant to this section.
(i) For purposes of complying with Section 41, with respect to this section and Section 23660, the Legislative Analyst shall prepare, by January 1, 2027, an evaluation of the effectiveness of the Export Cargo Tax Credit. The report, submitted in compliance with Section
9795 of the Government Code, shall include the overall impact of the credits, the amount of credits issued, the economic impact of the credits on jobs in the state, tax revenues, and the economy, and any other factors that describe the impact of the credits.
(j) This section shall remain in effect only until December 1, 2027, and as of that date is repealed.