AB 2687 Summary

• Establishes two tax credits for taxable years 2011-2020: a trade infrastructure investment credit (up to 5% of qualifying project capital costs) and an import-export cargo credit ($5 per ton of additional qualified cargo).

• Applies to personal income tax and corporation tax for qualifying projects with minimum $5 million capital costs related to port/harbor operations and cargo handling at California public ports.

• Requires Franchise Tax Board certification of projects and cargo, with determination that state revenues from economic impacts will offset the cost of providing tax credits.

• Allows unused credits to carry forward up to 10 years; requires recapture of credits if qualifying project is sold within 10 years unless credit is assigned to new owner.

• Mandates Legislative Analyst evaluation by January 1, 2020, assessing tax credit effectiveness, jobs created, payroll impact, and infrastructure development; credits expire December 1, 2022 unless extended.