CA AB52

Establishes income tax credits for taxable years 2025-2029 allowing taxpayers to claim credits equal to sales and use taxes paid on manufacturing equipment and research and development equipment that would otherwise be exempt under state law but are subject to local taxes.

Applies to both personal income tax (Section 17053.90) and corporation tax (Section 23623) with identical credit provisions and requirements.

Allows excess credits to carry forward up to 8 years if they exceed the taxpayer's net tax liability in a given year.

Denies credits for qualified property removed from California within one year of purchase, converted to non-exempt use, or used in a manner not qualifying for exemption.

Requires the Department of Finance to provide annual revenue impact estimates to legislative budget committees by May 14, 2025 and thereafter, with credits allowed only for years when the Legislature appropriates money for administration in the Budget Act.