AB 810 Summary

• Exempts from state sales and use taxes the sale and use of tangible personal property purchased by qualified manufacturers for use in manufacturing, processing, refining, fabricating, or recycling operations, effective January 1, 2011

• Exempts sustainable development equipment that reduces greenhouse gas emissions, promotes energy efficiency, reduces water waste, or utilizes recycled materials in the manufacturing process

• Exempts tangible personal property purchased by qualified persons and used primarily in research and development processes that meet Internal Revenue Code Section 174 requirements

• Defines qualified persons as those primarily engaged in manufacturing industries (NAICS codes 3111-3399 and 5112) and their affiliates in unitary groups

• Excludes the exemption from local sales taxes, transactions and use taxes, and specifies property removed from California or converted to non-exempt uses within one year becomes subject to sales tax liability