CA AB2640

Provides a credit against personal income tax and corporation tax for the full amount of sales and use taxes paid on qualified property placed in service in California for taxable years beginning January 1, 2011 through December 31, 2015.

Defines "qualified property" as Section 1245 property and "qualified taxpayer" as taxpayers primarily engaged in manufacturing or related industries (NAICS codes 311111-339999).

Eliminates the federal income tax exclusion for qualified parking benefits provided by employers to employees for taxable years 2011-2015.

Caps total credits allocated under this section and related provisions at $100 million, adjusted annually for inflation, with a first-come-first-served allocation system and waitlist for excess applications.

Allows credit carryover for up to 8 years if credit exceeds tax liability in a given year, but recaptures the credit if qualified property is removed from the state or disposed of within one year of placement in service.