SB 587: Personal income taxes: credit: manufacturing: sales and use taxes.

This bill allows a credit against personal income tax and corporation tax for taxpayers who have paid sales tax reimbursement or use tax on certain purchases that would have been exempt from taxation. The exemption applies to purchases made for manufacturing, recycling, and research and development, and the credit is limited to taxable years beginning in 2026 and ending in 2031. The credit is equal to the amount of sales tax reimbursement or use tax paid, and it is administered by the California Department of Tax and Fee Administration. The bill requires the Department of Finance to estimate the revenue loss if the credits are allowed and to provide reimbursement for certain costs. The bill takes effect immediately as a tax levy.