Bill Text: CA AB886 | 2013-2014 | Regular Session | Amended
Bill Title: California Transportation Financing Authority: tax credit certificates for exporters and importers: income tax credit.
Spectrum: Partisan Bill (Democrat 2-0)
Status: (Introduced - Dead) 2014-02-03 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB886 Detail]
Download: California-2013-AB886-Amended.html
BILL NUMBER: AB 886 AMENDED BILL TEXT AMENDED IN ASSEMBLY APRIL 16, 2013 AMENDED IN ASSEMBLY MARCH 21, 2013 INTRODUCED BY AssemblyMemberAllenMembers Allen and Ian Calderon FEBRUARY 22, 2013 An act to add and repeal Division 4 (commencing with Section 64140) of Title 6.7 of the Government Code, and to add and repeal Sections 17053.60, 17053.65, 17053.66, 23660, 23665, and 23666 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy. LEGISLATIVE COUNSEL'S DIGEST AB 886, as amended, Allen. California Transportation Financing Authority: tax credit certificates for exporters and importers: income tax credit. Existing law creates the California Transportation Financing Authority, with various powers and duties relative to the financing of transportation projects. This bill would authorize the authority to award tax credit certificates to exporters and importers, as defined, that demonstrate to the satisfaction of the authority that, during the taxable year, they have increased their cargo tonnage or value through California ports and airports by specified amounts or had a net increase in qualified full-time employees hired in California or have incurred capital costs for a cargo facility in California. The bill would authorize an aggregate $500,000,000 in tax credit certificates to be awarded by the authority for taxable years beginning on or after January 1, 2014, and before January 1, 2019, as provided. The bill would require the authority to provide a report to the Legislature regarding the tax credit certificate program, as provided. The bill would authorize the authority to impose fees to cover its costs, with fees to be deposited in the Job and Trade Competitiveness Fee Account, which the bill would create in the State Treasury. The bill would authorize the authority to borrow money until the time that sufficient fee revenue is available, with loans made to the authority to be repayable solely from revenues in the account. The bill would make legislative findings and declarations. The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws. This bill would, for taxable years beginning on or after January 1, 2014, and before January 1, 2019, allow a credit or credits in an aggregate amount not to exceed $250,000 for a taxable year against the taxes imposed by those laws if a taxpayer receives a tax credit certificate from the authority. This bill would take effect immediately as a tax levy. Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Division 4 (commencing with Section 64140) is added to Title 6.7 of the Government Code, to read: DIVISION 4. JOB AND TRADE COMPETITIVENESS ACT 64140. (a) The Legislature finds and declares all of the following: (1) California is the international trade leader of the United States as the gateway to the dynamic economies of the Pacific Rim. International trade is one of the most important economic and job creation drivers of the state and a key to the state's economic recovery. Together, the three California customs districts of Los Angeles, San Diego, and San Francisco led the nation by processing approximately $500 billion in two-way trade value in 2010. The combined California ports of Los Angeles, Long Beach, and Oakland are the busiest seaports in the nation, handling approximately 45 percent of all the waterborne containerized cargo coming into the United States. (2) California, however, must do more to ensure that California ports remain competitive, as the Gulf, East Coast, and Mexican ports work to attract business away from California seaports and competition intensifies after the expansion of the Panama Canal in 2014. California ports are taking action to retain market share by expanding terminal capacity and investing in other trade-related infrastructure projects, but more needs to be done to protect California's vitally important international trade sector, including creating incentives to maintain and grow new jobs related to business, manufacturing, and trade in the years ahead. (3) Providing California tax credits to exporters and importers through California ports and airports and increasing cargo-moving capacity at California's ports and airports will support President Obama's national export initiative. (b) It is the intent of the Legislature to boost exports and imports through California ports and airports by providing tax credits for California exporters and importers and by providing tax credits for increasing cargo-moving capacity. 64141. For the purposes of this division, the following terms have the following meanings: (a) "Annual full-time equivalent" means either of the following: (1) In the case of a full-time employee who was paid hourly qualified wages, "annual full-time equivalent" means the total number of hours worked for the taxpayer by the employee (not to exceed 2,000 hours per employee) divided by 2,000. (2) In the case of a salaried full-time employee, "annual full-time equivalent" means the total number of weeks worked for the taxpayer by the employee divided by 52. (b) "Authority" means the California Transportation Financing Authority established in Section 64101. (c) (1) "Capital costs" means all costs and expenses incurred by one or more exporter or importer in connection with the acquisition, construction, installation, and equipping of a cargo facility, including any environmental mitigation undertaken specifically to reduce the impacts of a cargo facility, during the period commencing with the date on which the acquisition, construction, installation, and equipping commences and ending on the date on which the cargo facility is placed in service. (2) Capital costs shall include, but not be limited to, the following: (A) The costs of acquiring, constructing, installing, equipping, and financing a cargo facility, including all obligations incurred for labor and to contractors, subcontractors, builders, and materialmen. (B) The costs of acquiring land or rights in land and any cost incidental thereto, including recording fees. (C) The costs of contract bonds and of insurance of any kind that may be required or necessary during the acquisition, construction, or installation of a cargo facility. (D) The costs of architectural and engineering services, including test borings, surveys, estimates, plans, specifications, preliminary investigations, environmental mitigation, and supervision of construction, as well as for the performance of all the duties required by or consequent upon the acquisition, construction, and installation of a cargo facility. (E) The costs associated with installation of fixtures and equipment, surveys, including archaeological and environmental surveys, site tests and inspections, subsurface site work, excavation, removal of structures, roadways, and other surface obstructions, filling, grading, paving, and provisions for drainage, stormwater retention, installation of utilities, including water, sewerage treatment, gas, electricity, communications, and similar facilities, and offsite construction of utility extensions to the boundaries of the property. (F) The costs of completing any environmental mitigation. (G) All other costs of a nature comparable to those described, including, but not limited to, all project costs required to be capitalized for federal income tax purposes pursuant to the provisions of Section 263(a) of Title 26 of the United States Code. (H) Costs otherwise defined as capital costs incurred by the exporter or importer where the qualifying taxpayer is the lessee under a lease that contains a term of not less than five years and is characterized as a capital lease for federal income tax purposes. (3) Capital costs shall not include property owned or leased by the exporter or importer or a related entity before the commencement of the acquisition, construction, installation, or equipping of the cargo facility, unless the property was physically located outside the state for a period of at least one year prior to the date on which the cargo facility was placed in service. (4) Capital costs shall not include project costs that were expended prior to January 1, 2014. (d) "Cargo facility" means a capital project at a port or airport in California designed to increase cargo-moving capacity at that port or airport and that is expended in a taxable year and has a useful life of five years or more. (e) "Export cargo tonnage" means the weight of cargo exported through California ports by an exporter to destinations outside the United States. (f) "Export cargo value" means the value of cargo exported through California airports by an exporter to destinations outside of the United States as certified by the applicant for a tax credit certificate. (g) "Exporter" means a California taxpayer that is the shipper of record of agricultural products or manufactured goods on an ocean bill of lading or on an air waybill. (h) "Import cargo tonnage" means the weight of cargo imported by an importer through California ports by that importer from outside the United States. (i) "Import cargo value" means the value of cargo imported through California airports by an importer from outside the United States as certified by the applicant for a tax credit certificate. (j) "Importer" means a California taxpayer that is the consignee of record of agricultural products or manufactured goods on an ocean bill of lading or on an air waybill. (k) (1) "Qualified full-time employee" means either of the following: (A) A qualified employee who was paid qualified wages by the qualified employer for services of not less than an average of 35 hours per week. (B) A qualified employee who was a salaried employee and was paid compensation during the taxable year for full-time employment, within the meaning of Section 515 of the Labor Code, by the qualified employer. (2) A "qualified employee" shall not include any of the following: (A) An employee certified as a qualified employee in an enterprise zone designated in accordance with Chapter 12.8 (commencing with Section 7070) of Division 7 of Title 1. (B) An employee certified as a qualified disadvantaged individual in a manufacturing enhancement area designated in accordance with Section 7073.8. (C) An employee certified as a qualified employee in a targeted tax area designated in accordance with Section 7097. (D) An employee certified as a qualified disadvantaged individual or a qualified displaced employee in a local agency military base recovery area (LAMBRA) designated in accordance with Chapter 12.97 (commencing with Section 7105) of Division 7 of Title 1. (E) An employee whose wages are included in calculating any other credit allowed under Part 10 (commencing with Section 17001) or Part 11 (commencing with Section 23001) of Division 2 of the Revenue and Taxation Code. (l) "Qualified wages" means wages subject to Division 6 (commencing with Section 13000) of the Unemployment Insurance Code. (m) "Tax credit certificate" means a certificate awarded by the authority to an exporter or importer evidencing the right of the exporter or importer to claim the tax credits provided for in this division in the amount specified in the certificate. 64142. (a) Subject to the limitations in subdivision (f), for taxable years beginning on or after January 1, 2014, and before January 1, 2019, the authority may award a tax credit certificate to a person that is an exporter or importer pursuant to subdivisions (b), (c), and (d) in an aggregate amount that is not greater than two hundred fifty thousand dollars ($250,000) for a taxable year. (b) A tax credit certificate, in an amount specified in subdivision (a) of Section 17053.60 of the Revenue and Taxation Code or subdivision (a) of Section 23660 of the Revenue and Taxation Code, may be awarded by the authority to any of the following: (1) Exporters that demonstrate to the satisfaction of the authority that they have increased their export cargo tonnage through California ports in a taxable year beginning on or after January 1, 2014, and before January 1, 2019, by at least 5 percent over their export cargo tonnage through California ports for the preceding taxable year. (2) Importers that demonstrate to the satisfaction of the authority that they have increased their import cargo tonnage through California ports in a taxable year beginning on or after January 1, 2014, and before January 1, 2019, by at least 5 percent over their import cargo tonnage through California ports for the preceding taxable year. (3) Exporters that demonstrate to the satisfaction of the authority that they have increased their export cargo value through California airports in a taxable year beginning on or after January 1, 2014, and before January 1, 2019, by at least 5 percent over their export cargo value through California airports for the preceding taxable year. (4) Importers that demonstrate to the satisfaction of the authority that they have increased their import cargo value through California airports in taxable year beginning on or after January 1, 2014, and before January 1, 2019, by at least 5 percent over their import cargo value through California airports for the preceding taxable year. (5) Exporters or importers that demonstrate to the satisfaction of the authority that they have exported or imported export or import cargo tonnage through California ports in excess of 400,000 tons in a taxable year beginning on or after January 1, 2014, and before January 1, 2019, and that they did not export or import cargo through California ports in the preceding taxable year. (6) Exporters and importers that demonstrate to the satisfaction of the authority that they have exported or imported cargo through California airports with export or import cargo value in excess of two hundred fifty thousand dollars ($250,000) in a taxable year beginning on or after January 1, 2014, and before January 1, 2019, and that they did not export or import cargo through California airports in the preceding taxable year. (c) (1) A tax credit certificate, in an amount specified in subdivision (a) of Section 17053.65 of the Revenue and Taxation Code or subdivision (a) of Section 23665 of the Revenue and Taxation Code, may be awarded by the authority to an exporter or importer that demonstrates to the satisfaction of the authority that the exporter or importer had a net increase in qualified full-time employees hired in California during the taxable year. (2) The net increase in qualified full-time employees of a qualified employer shall be determined as provided by this paragraph: (A) The net increase in qualified full-time employees shall be determined on an annual full-time equivalent basis by subtracting from the amount determined in clause (ii) the amount determined in clause (i). (i) The total number of qualified full-time employees employed in the preceding taxable year by the taxpayer and by any trade or business acquired by the taxpayer during the current taxable year. (ii) The total number of full-time employees employed in the current taxable year by the taxpayer and by any trade or business acquired during the current taxable year. (B) For taxpayers that first commence doing business in this state during the taxable year, the number of full-time employees for the immediately preceding prior taxable year shall be zero. (d) A tax credit certificate, in an amount specified in subdivision (a) of Section 17053.66 of the Revenue and Taxation Code or subdivision (a) of Section 23666 of the Revenue and Taxation Code, may be awarded by the authority to an exporter or importer that demonstrates to the satisfaction of the authority that the exporter or importer has paid capital costs on a cargo facility in California during the taxable year. (e) The authority shall, consistent with the requirements and criteria of this division and Sections 17053.60, 17053.65, 17053.66, 23660, 23665, and 23666 of the Revenue and Taxation Code, do all of the following: (1) Establish a procedure for applicants to apply for the tax credit certificates, and a process to award those tax credit certificates on a first-come-first-served basis. (2) Determine the information necessary to be provided by an applicant to the authority in order to award the tax credit certificates. (3) Develop and provide application forms for use by applicants for tax credit certificates. The application form shall allow for electronic submission and shall provide for inclusion of the applicant's taxpayer identification number. (f) The total amount of tax credit certificates authorized to be awarded pursuant to subdivisions (b), (c), and (d) in each of the five calendar years beginning with January 1, 2014, is one hundred million dollars ($100,000,000), for a total of five hundred million dollars ($500,000,000), and any portion of that authorization not awarded in any calendar year may be awarded in a future calendar year ending before January 1, 2019. (g) (1) The authority shall establish and charge applicants fees that it determines are reasonably sufficient to cover all of its costs in carrying out its responsibilities under this division. The fees shall be deposited in the Job and Trade Competitiveness Fee Account, which is hereby established in the State Treasury. Moneys in the account shall be available, upon appropriation by the Legislature, to the authority for the purpose of implementing this division. (2) Until the time that sufficient revenue is received by the authority, the authority may borrow any money as may be required for the purpose of meeting necessary expenses under this division, not to exceed the amount appropriated. A loan made to the authority shall be repayable solely from moneys appropriated to the authority from the Job and Trade Competitiveness Fee Account and shall not constitute a general obligation of the state for which the full faith and credit of the state are pledged. (h) The authority shall determine the amount of each tax credit pursuant to this division and Sections 17053.60, 17053.65, 17053.66, 23660, 23665, and 23666 of the Revenue and Taxation Code, and the Franchise Tax Board shall not be responsible for determining the amount of that tax credit. The authority shall provide the Franchise Tax Board with an electronic copy of each tax credit certification awarded by it within 30 days after issuing the certificate. The tax credit certificate shall include the date of issuance, the amount of the tax credit, the name, the type of credit awarded, and taxpayer identification number of the exporter or importer to which the certificate was awarded. (i) (1) The authority shall establish audit procedures of taxpayers who have been awarded a tax credit certificate to verify that the tax credit certificate was awarded consistent with the requirements of this division and Sections 17053.60, 17053.65, 17053.66, 23660, 23665, and 23666 of the Revenue and Taxation Code. The authority shall conduct audits at random as the authority deems appropriate. (2) An audit undertaken pursuant to paragraph (1) shall be conducted within 12 months of the issuance of the tax credit certificate. The authority shall allow no less than 30 days to respond to audit findings. (j) In the event that the authority determines that any amount of a tax credit certificate was not awarded consistent with the requirements of this division or Sections 17053.60, 17053.65, 17053.66, 23660, 23665, and 23666 of the Revenue and Taxation Code, the authority shall cancel any unapplied amount erroneously awarded and any previously allowed credit erroneously awarded shall be recaptured. The authority shall notify the Franchise Tax Board of any amounts of a tax credit certificate that were erroneously awarded and were canceled. (k) The authority may prescribe rules, guidelines, or procedures necessary or appropriate to carry out the purposes of this division , including, but not limited to, an appeals process for denied or disqualified applications and audit findings. The guidelines, policies, and procedures shall provide for the issuance of a certificate within 30 days of submission of a complete application and a 14-day response for appeals . Chapter 3.5 (commencing with Section 11340) of Part 1 of Division 3 of Title 2 does not apply to any rule, guideline, or procedure prescribed by the authority pursuant to this subdivision. (l) A tax credit certificate awarded pursuant to this section shall not be transferable. (m) The authority shall notify the taxpayer within 45 days of either a denial of the tax credit certificate application or an award of a tax credit certificate. (n) Notwithstanding Section 102315 of the Government Code, by February 1 of the year following a year in which allocations are made, the authority shall report to the Legislature on the program's activities, including, but not limited to, the number of allocations, number of jobs created, the amount of capital investment leveraged, and the volume and value of imports and exports that received credit certificates. This report may be included within other annual reporting done by the authority.(n)(o) This division shall remain in effect only until January 1, 2021, and as of that date is repealed. SEC. 2. Section 17053.60 is added to the Revenue and Taxation Code, to read: 17053.60. (a) (1) For each taxable year beginning on or after January 1, 2014, and before January 1, 2019, and subject to subdivision (c), there shall be allowed as a credit against the "net tax," as defined in Section 17039, the amount specified in paragraph (2), to an exporter or importer that has been awarded a tax credit certificate pursuant to the Job and Trade Competitiveness Act (Division 4 (commencing with Section 64140) of Title 6.7 of the Government Code). (2) (A) If an exporter or importer exported or imported during the preceding taxable year, the credit amount will be determined as follows: (i) The amount of credit allowed for an exporter or importer that increases exports or imports through ports in California shall be three dollars and twelve and one-half cents ($3.125) per ton of increased exports and imports for the taxable year through ports in California by the exporter or importer. (ii) The amount of credit allowed for an exporter or importer that increases exports or imports through airports in California shall be one thousand dollars ($1,000) for each ten thousand dollars ($10,000) of increased exports and imports for the taxable year through airports in California by the exporter or importer. (B) If an exporter or importer did not export or import during the preceding taxable year, the credit amount shall be determined as follows: (i) The amount of credit allowed for an exporter or importer that exports or imports 400,000 or more tons through ports in California in a taxable year shall be three dollars and twelve and one-half cents ($3.125) per ton of exports and imports for the taxable year through ports in California by the exporter or importer. (ii) The amount of credit allowed for an exporter or importer that exports or imports two hundred fifty thousand dollars ($250,000) or more through airports in California shall be one thousand dollars ($1,000) for each ten thousand dollars ($10,000) of exports and imports for the taxable year through airports in California by the exporter or importer. (b) For purposes of this section: (1) "Authority" means the California Transportation Financing Authority established in Section 64101 of the Government Code. (2) "Exporter" has the same meaning as provided in subdivision (g) of Section 64141 of the Government Code. (3) "Importer" has the same meaning as provided in subdivision (j) of Section 64141 of the Government Code. (4) "Increased exports or imports" means the difference between the amount of exports and imports, whether measured by tons or dollars, in the current taxable year and the preceding taxable year if the current taxable year has a greater amount of exports or imports. (5) "Tax credit certificate" has the same meaning as provided in subdivision (m) of Section 64141 of the Government Code. (c) The aggregate amount of credit allowed to a taxpayer under this section and Sections 17053.65 and 17053.66 shall be no more than two hundred fifty thousand dollars ($250,000) for a taxable year and shall be limited to the amount specified in the tax credit certificate issued to the taxpayer pursuant to the Job and Trade Competitiveness Act (Division 4 (commencing with Section 64140) of Title 6.7 of the Government Code). (d) In the event that the authority notifies the Franchise Tax Board of any amounts of a tax credit certificate that were erroneously awarded and were canceled pursuant to subdivision (j) of Section 64142 of the Government Code, those amounts shall not be allowed as a credit, and any previously allowed credit shall be recaptured. The taxpayer shall be liable for any increase in tax attributable to the recapture of any credit previously allowed under this section. (e) 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 year, and succeeding nine years, if necessary, until the credit is exhausted. (f) This section shall remain in effect only until December 1, 2019, and as of that date is repealed. SEC. 3. Section 17053.65 is added to the Revenue and Taxation Code, to read: 17053.65. (a) For each taxable year beginning on or after January 1, 2014, and before January 1, 2019, and subject to subdivision (c), there shall be allowed as a credit against the "net tax," as defined in Section 17039, to an exporter or importer that has been awarded a tax credit certificate pursuant to the Job and Trade Competitiveness Act (Division 4 (commencing with Section 64140) of Title 6.7 of the Government Code), in an amount equal to three thousand dollars ($3,000) for each net increase in qualified full-time employees hired in California during the taxable year by an exporter or importer, in a taxable year. (b) For purposes of this section: (1) "Authority" means the California Transportation Financing Authority established in Section 64101 of the Government Code. (2) "Exporter" has the same meaning as provided in subdivision (g) of Section 64141 of the Government Code. (3) "Importer" has the same meaning as provided in subdivision (j) of Section 64141 of the Government Code. (4) "Qualified full-time employee" has the same meaning as provided in subdivision (k) of Section 64141 of the Government Code. (5) "Tax credit certificate" has the same meaning as provided in subdivision (m) of Section 64141 of the Government Code. (c) The aggregate amount of the credit allowed to a taxpayer under this section and Sections 17053.60 and 17053.66 shall be no more than two hundred fifty thousand dollars ($250,000) for a taxable year and shall be limited to the amount specified in the tax credit certificate issued to the taxpayer pursuant to the Job and Trade Competitiveness Act (Division 4 (commencing with Section 64140) of Title 6.7 of the Government Code). (d) In the event that the authority notifies the Franchise Tax Board of any amounts of a tax credit certificate that were erroneously awarded and were canceled pursuant to subdivision (j) of Section 64142 of the Government Code, those amounts shall not be allowed as a credit, and any previously allowed credit shall be recaptured. The taxpayer shall be liable for any increase in tax attributable to the recapture of any credit previously allowed under this section. (e) 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 year, and succeeding nine years, if necessary, until the credit is exhausted. (f) This section shall remain in effect only until December 1, 2019, and as of that date is repealed. SEC. 4. Section 17053.66 is added to the Revenue and Taxation Code, to read: 17053.66. (a) For each taxable year beginning on or after January 1, 2014, and before January 1, 2019, and subject to subdivision (c), there shall be allowed as a credit against the "net tax," as defined in Section 17039, to an exporter or importer that has been awarded a tax credit certificate pursuant to the Job and Trade Competitiveness Act (Division 4 (commencing with Section 64140) of Title 6.7 of the Government Code), in an amount of up to, but not to exceed, 2 percent of the total capital costs for a cargo facility constructed in California by an exporter or importer during a taxable year. (b) For purposes of this section: (1) "Authority" means the California Transportation Financing Authority established in Section 64101 of the Government Code. (2) "Capital costs" has the same meaning as provided in subdivision (c) of Section 64141 the Government Code. (3) "Cargo facility" has the same meaning as provided in subdivision (d) of Section 64141 of the Government Code. (4) "Exporter" has the same meaning as provided in subdivision (g) of Section 64141 of the Government Code. (5) "Importer" has the same meaning as provided in subdivision (j) of Section 64141 of the Government Code. (6) "Tax credit certificate" has the same meaning as provided in subdivision (m) of Section 64141 of the Government Code. (c) The aggregate amount of the credit allowed to a taxpayer under this section and Sections 17053.60 and 17053.65 shall be no more than two hundred fifty thousand dollars ($250,000) for a taxable year and shall be limited to the amount specified in the tax credit certificate issued to the taxpayer pursuant to the Job and Trade Competitiveness Act (Division 4 (commencing with Section 64140) of Title 6.7 of the Government Code). (d) In the event that the authority notifies the Franchise Tax Board of any amounts of a tax credit certificate that were erroneously awarded and were canceled pursuant to subdivision (j) of Section 64142 of the Government Code, those amounts shall not be allowed as a credit, and any previously allowed credit shall be recaptured. The taxpayer shall be liable for any increase in tax attributable to the recapture of any credit previously allowed under this section. (e) 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 year, and succeeding nine years, if necessary, until the credit is exhausted. (f) This section shall remain in effect only until December 1, 2019, and as of that date is repealed. SEC. 5. Section 23660 is added to the Revenue and Taxation Code, to read: 23660. (a) (1) For each taxable year beginning on or after January 1, 2014, and before January 1, 2019, and subject to subdivision (c), there shall be allowed as a credit against the "tax," as defined in Section 23036, an amount specified in paragraph (2), to an exporter or importer that has been awarded a tax credit certificate pursuant to the Job and Trade Competitiveness Act (Division 4 (commencing with Section 64140) of Title 6.7 of the Government Code). (2) (A) If an exporter or importer exported or imported during the preceding taxable year, the credit amount will be determined as follows: (i) The amount of credit allowed for an exporter or importer that increases exports or imports through ports in California shall be three dollars and twelve and one-half cents ($3.125) per ton of increased exports and imports for the taxable year through ports in California by the exporter or importer. (ii) The amount of credit allowed for an exporter or importer that increases exports or imports through airports in California shall be one thousand dollars ($1,000) for each ten thousand dollars ($10,000) of increased exports and imports for the taxable year through airports in California by the exporter or importer. (B) If an exporter or importer did not export or import during the preceding taxable year, the credit amount shall be determined as follows: (i) The amount of credit allowed for an exporter or importer that exports or imports 400,000 or more tons through ports in California in a taxable year shall be three dollars and twelve and one-half cents ($3.125) per ton of exports and imports for the taxable year through ports in California by the exporter or importer. (ii) The amount of credit allowed for an exporter or importer that exports or imports two hundred fifty thousand dollars ($250,000) or more through airports in California shall be one thousand dollars ($1,000) for each ten thousand dollars ($10,000) of exports and imports for the taxable year through airports in California by the exporter or importer. (b) For purposes of this section: (1) "Authority" means the California Transportation Financing Authority established in Section 64101 of the Government Code. (2) "Exporter" has the same meaning as provided in subdivision (g) of Section 64141 of the Government Code. (3) "Importer" has the same meaning as provided in subdivision (j) of Section 64141 of the Government Code. (4) "Increased exports or imports" means the difference between the amount of exports and imports, whether measured by tons or dollars, in the current taxable year and the preceding taxable year if the current taxable year has a greater amount of exports or imports. (5) "Tax credit certificate" has the same meaning as provided in subdivision (m) of Section 64141 of the Government Code. (c) The aggregate amount of credit allowed to a taxpayer under this section and Sections 23665 and 23666 shall be no more than two hundred fifty thousand dollars ($250,000) for a taxable year and shall be limited to the amount specified in the tax credit certificate issued to the taxpayer pursuant to the Job and Trade Competitiveness Act (Division 4 (commencing with Section 64140) of Title 6.7 of the Government Code). (d) In the event that the authority notifies the Franchise Tax Board of any amounts of a tax credit certificate that were erroneously awarded and were canceled pursuant to subdivision (j) of Section 64142 of the Government Code, those amounts shall not be allowed as a credit, and any previously allowed credit shall be recaptured. The taxpayer shall be liable for any increase in tax attributable to the recapture of any credit previously allowed under this section. (e) In the case where the credit allowed by this section exceeds the "tax," the excess may be carried over to reduce the "tax" in the following year, and succeeding nine years, if necessary, until the credit is exhausted. (f) This section shall remain in effect only until December 1, 2019, and as of that date is repealed. SEC. 6. Section 23665 is added to the Revenue and Taxation Code, to read: 23665. (a) For each taxable year beginning on or after January 1, 2014, and before January 1, 2019, and subject to subdivision (c), there shall be allowed as a credit against the "tax," as defined in Section 23036, to an exporter or importer that has been awarded a tax credit certificate pursuant to the Job and Trade Competitiveness Act (Division 4 (commencing with Section 64140) of Title 6.7 of the Government Code), in an amount equal to three thousand dollars ($3,000) for each net increase in qualified full-time employees hired in California during the taxable year by an exporter or importer, in a taxable year. (b) For purposes of this section: (1) "Authority" means the California Transportation Financing Authority established in Section 64101 of the Government Code. (2) "Exporter" has the same meaning as provided in subdivision (g) of Section 64141 of the Government Code. (3) "Importer" has the same meaning as provided in subdivision (j) of Section 64141 of the Government Code. (4) "Qualified full-time employee" has the same meaning as provided in subdivision (k) of Section 64141 of the Government Code. (5) "Tax credit certificate" has the same meaning as provided in subdivision (m) of Section 64141 of the Government Code. (c) The aggregate amount of the credit allowed to a taxpayer under this section and Sections 23660 and 23666 shall be no more than two hundred fifty thousand dollars ($250,000) for a taxable year and shall be limited to the amount specified in the tax credit certificate issued to the taxpayer pursuant to the Job and Trade Competitiveness Act (Division 4 (commencing with Section 64140) of Title 6.7 of the Government Code). (d) In the event that the authority notifies the Franchise Tax Board of any amounts of a tax credit certificate that were erroneously awarded and were canceled pursuant to subdivision (j) of Section 64142 of the Government Code, those amounts shall not be allowed as a credit, and any previously allowed credit shall be recaptured. The taxpayer shall be liable for any increase in tax attributable to the recapture of any credit previously allowed under this section. (e) In the case where the credit allowed by this section exceeds the "tax," the excess may be carried over to reduce the "tax" in the following year, and succeeding nine years, if necessary, until the credit is exhausted. (f) This section shall remain in effect only until December 1, 2019, and as of that date is repealed. SEC. 7. Section 23666 is added to the Revenue and Taxation Code, to read: 23666. (a) For each taxable year beginning on or after January 1, 2014, and before January 1, 2019, and subject to subdivision (c), there shall be allowed as a credit against the "tax," as defined in Section 23036, to an exporter or importer that has been awarded a tax credit certificate pursuant to the Job and Trade Competitiveness Act (Division 4 (commencing with Section 64140) of Title 6.7 of the Government Code), in an amount of up to, but not to exceed, 2 percent of the total capital costs for a cargo facility constructed in California by an exporter or importer during a taxable year. (b) For purposes of this section: (1) "Authority" means the California Transportation Financing Authority established in Section 64101 of the Government Code. (2) "Capital costs" has the same meaning as provided in subdivision (c) of Section 64141 of the Government Code. (3) "Cargo facility" has the same meaning as provided in subdivision (d) of the Government Code. (4) "Exporter" has the same meaning as provided in subdivision (g) of Section 64141 of the Government Code. (5) "Importer" has the same meaning as provided in subdivision (j) of Section 64141 of the Government Code. (6) "Tax credit certificate" has the same meaning as provided in subdivision (m) of Section 64141 of the Government Code. (c) The aggregate amount of the credit allowed to a taxpayer under this section and Sections 23660 and 23665 shall be no more than two hundred fifty thousand dollars ($250,000) for a taxable year and shall be limited to the amount specified in the tax credit certificate issued to the taxpayer pursuant to the Job and Trade Competitiveness Act (Division 4 (commencing with Section 64140) of Title 6.7 of the Government Code). (d) In the event that the authority notifies the Franchise Tax Board of any amounts of a tax credit certificate that were erroneously awarded and were canceled pursuant to subdivision (j) of Section 64142 of the Government Code, those amounts shall not be allowed as a credit, and any previously allowed credit shall be recaptured. The taxpayer shall be liable for any increase in tax attributable to the recapture of any credit previously allowed under this section. (e) In the case where the credit allowed by this section exceeds the "tax," the excess may be carried over to reduce the "tax" in the following year, and succeeding nine years, if necessary, until the credit is exhausted. (f) This section shall remain in effect only until December 1, 2019, and as of that date is repealed. SEC. 8. This act provides for a tax levy within the meaning of Article IV of the Constitution and shall go into immediate effect.
