CA AB1972

Exempts from state and local sales and use taxes the purchase of tangible personal property used by qualified manufacturers primarily in manufacturing, processing, refining, fabricating, or recycling activities from January 1, 2013 through December 31, 2018.

Extends exemption to tangible personal property used in research and development, maintenance, repair, measurement, or testing of manufacturing equipment, and to contractor purchases for construction projects integral to manufacturing processes.

Excludes from exemption property used primarily in administration, general management, or marketing; consumables with useful life under one year; and furniture, inventory, or storage equipment for finished products.

Defines "qualified person" as businesses in NAICS manufacturing industries (3111-3399), specific utility and research industries, and their affiliated entities in unitary groups.

Prohibits state reimbursement to local agencies for sales tax revenue losses resulting from this exemption, notwithstanding existing law requiring such reimbursement.