CA SB587

Creates a tax credit against personal income and corporation taxes for taxable years January 1, 2026 through January 1, 2031, equal to the amount of local sales and use taxes paid on purchases that would otherwise qualify for the state's partial manufacturing equipment exemption under Section 6377.1

Allows unused credits to be carried forward for up to eight succeeding years; credits must be claimed on timely filed original returns only

Requires taxpayers to file amended returns if property generating the credit is moved out of state or otherwise disqualified within one year of purchase

Requires the Department of Finance to provide annual estimates to legislative budget committees by May 14 of each year regarding projected revenue loss, with credits only allowed for taxable years in which the Legislature appropriates funds for administration

Mandates the Franchise Tax Board to submit a report to the Legislature by April 1, 2033, detailing the total dollar amount of credits allowed and number of taxpayers claiming credits; provisions sunset December 1, 2031, with repeal January 1, 2034