California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 2.5 - Personal Income Tax (Taxable Years Beginning After 12-31-54) › Subchapter 2 - Imposition of Tax › Article 1 - Joint Strike Fighter Wage Credit › Section 17053.49-1 - The Manufacturers' Investment Credit

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(See Regulation Section
						17053.49-0 for Table of
						Contents.)
(a)
In
					 General
. The Manufacturers' Investment Credit (MIC) is allowed to any
					 qualified taxpayer in an amount equal to six percent (6%) of any qualified
					 costs paid or incurred on or after January 1, 1994, for qualified property that
					 is placed in service in this state. A qualified taxpayer who leases qualified
					 property for use in a qualified activity of the qualified taxpayer may also
					 claim the MIC. Qualified property may be either new or used and must be placed
					 in service in this state and used by a qualified taxpayer in a qualified
					 activity for more than one year to avoid recapture of the MIC. The basis of any
					 qualified property for which the MIC is claimed is not required to be reduced
					 by the amount of any MIC claimed.
(b)
MIC for Qualified Costs Paid or
					 Incurred in 1994 Must Be Claimed on Qualified Taxpayer's Return for First
					 Taxable Year Beginning on or After January 1, 1995
. In the case of any
					 qualified costs paid or incurred on or after January 1, 1994, and prior to the
					 first taxable year of the qualified taxpayer beginning on or after January 1,
					 1995, the MIC shall be treated as having been allowed as of the date the
					 qualified property is placed in service in this state but shall not be claimed
					 by the qualified taxpayer until the qualified taxpayer files its California tax
					 return for its first taxable year beginning on or after January 1, 1995. No MIC
					 shall be claimed on any return filed for any taxable year commencing prior to
					 the qualified taxpayer's first taxable year beginning on or after January 1,
					 1995. Fiscal year taxpayers who paid or incurred qualified costs on or after
					 January 1, 1994, and during the qualified taxpayer's taxable year beginning in
					 1993, shall treat any such taxable year 1993 qualified costs as 1994 qualified
					 costs to be claimed on the qualified taxpayer's 1995 taxable year
					 return.
(c)
Cross
					 References.
Regulation 17053.49-2 contains definitions applicable to
					 Regulations 17053.49-1 through 17053.49-11, inclusive. Regulation 17053.49-3
					 contains rules relating to qualified taxpayers, Regulation 17053.49-4 contains
					 rules relating to qualified costs, Regulation 17053.49-5 contains rules
					 relating to qualified property, Regulation 17053.49-6 contains rules applicable
					 to leases of qualified property by qualified taxpayers, Regulation 17053.49-7
					 is reserved, Regulation 17053.49-8 contains recapture rules, Regulation
					 17053.49-9 contains rules relating to carryforwards, Regulation 17053.49-10
					 contains general recordkeeping requirements, and Regulation 17053.49-11
					 contains other miscellaneous provisions. For rules relating to the MIC allowed
					 to taxpayers under the Bank and Corporation Tax Law, see Revenue and Taxation
					 Code Section
					 23649
					 and the regulations thereunder.
(d)
General References
. For purposes of Regulations
					 17053.49-1
					 through 17053.49-11, inclusive, the following general references shall apply:
(1) All citations to the Revenue and Taxation
					 Code are to the California Revenue and Taxation Code.
(2) All citations to the Internal Revenue
					 Code are to the Internal Revenue Code of 1986.
(3) The credits provided for in Revenue and
					 Taxation Code Sections
					 17053.49 and
					 23649
					 shall be collectively referred to as the "Manufacturers' Investment Credit" or
					 the "MIC."
(4) Any reference to a
					 taxpayer's taxable year shall mean the taxable year as defined in Revenue and
					 Taxation Code Section
					 17010.
(5) Any reference to sales or use tax shall
					 mean California sales or use tax imposed under Part 1 (commencing with Section
					 6001) of Division 2 of the Revenue
					 and Taxation Code. Any discussion of California sales and use tax law in
					 Regulations
					 17053.49-1
					 through 17053.49-11, inclusive, is based upon such law as in effect on the date
					 these regulations became effective, and is generally intended to restate the
					 requirements set forth in Revenue and Taxation Code Section
					 17053.49 and to be illustrative
					 of, but have no effect on, the California sales and use tax law and the
					 regulations thereunder. All examples which contain references to an amount of
					 California sales or use tax shall be at an assumed hypothetical sales or use
					 tax rate of eight percent (8%).
(6)
					 Any reference to "Division D of the SIC Manual" shall mean that portion of the
					 SIC Manual which includes Codes 2011 through 3999,
					 inclusive.