CA SBX68

Provides a partial exemption from state sales and use taxes on tangible personal property purchased for use in manufacturing, processing, refining, fabricating, or recycling, effective January 1, 2011.

Exempts purchases of tangible personal property used primarily in qualified research as defined by Section 41(d)(1) of the Internal Revenue Code.

Exempts property used to maintain, repair, measure, or test manufacturing and research equipment, including machinery, computers, software, pollution control equipment, special purpose buildings, and fuels used in the manufacturing process.

Exemption does not apply to local sales and use taxes, transactions and use taxes, or specified state taxes deposited into the Local Public Safety Fund, Local Revenue Fund, or Fiscal Recovery Fund.

Requires purchasers to furnish retailers with exemption certificates and prohibits exemption for property removed from California or converted to non-exempt use within one year of purchase.