CA AB1951

Expands the sales and use tax exemption for manufacturing and research and development equipment from a partial exemption to a full exemption for purchases not exceeding $200,000,000 per calendar year, effective January 1, 2023 through December 31, 2027.

Applies to qualified persons engaged in manufacturing, processing, refining, fabricating, recycling, research and development, and electric power generation or storage activities as defined by specific North American Industry Classification System (NAICS) codes.

Exempts qualified tangible personal property including machinery, equipment, computers, software, pollution control devices, and special purpose buildings used as integral parts of manufacturing or research processes.

Requires the California Department of Tax and Fee Administration to submit annual reports to the Legislature detailing exemption amounts, administrative costs, and number of businesses receiving the exemption; the Legislative Analyst's Office must report by January 1, 2027 on the exemption's economic impact.

Specifies that no state reimbursement is made to local agencies for sales and use tax revenue losses resulting from this exemption; takes effect immediately as a tax levy.