Section 17053.49-1 - The Manufacturers' Investment Credit(See Regulation Section 17053.49-0 for Table of Contents.)
(a)In General. The Manufacturers' Investment Credit (MIC) is allowed to any qualified taxpayer in an amount equal to six percent (6%) of any qualified costs paid or incurred on or after January 1, 1994, for qualified property that is placed in service in this state. A qualified taxpayer who leases qualified property for use in a qualified activity of the qualified taxpayer may also claim the MIC. Qualified property may be either new or used and must be placed in service in this state and used by a qualified taxpayer in a qualified activity for more than one year to avoid recapture of the MIC. The basis of any qualified property for which the MIC is claimed is not required to be reduced by the amount of any MIC claimed.(b)MIC for Qualified Costs Paid or Incurred in 1994 Must Be Claimed on Qualified Taxpayer's Return for First Taxable Year Beginning on or After January 1, 1995. In the case of any qualified costs paid or incurred on or after January 1, 1994, and prior to the first taxable year of the qualified taxpayer beginning on or after January 1, 1995, the MIC shall be treated as having been allowed as of the date the qualified property is placed in service in this state but shall not be claimed by the qualified taxpayer until the qualified taxpayer files its California tax return for its first taxable year beginning on or after January 1, 1995. No MIC shall be claimed on any return filed for any taxable year commencing prior to the qualified taxpayer's first taxable year beginning on or after January 1, 1995. Fiscal year taxpayers who paid or incurred qualified costs on or after January 1, 1994, and during the qualified taxpayer's taxable year beginning in 1993, shall treat any such taxable year 1993 qualified costs as 1994 qualified costs to be claimed on the qualified taxpayer's 1995 taxable year return.(c)Cross References. Regulation 17053.49-2 contains definitions applicable to Regulations 17053.49-1 through 17053.49-11, inclusive. Regulation 17053.49-3 contains rules relating to qualified taxpayers, Regulation 17053.49-4 contains rules relating to qualified costs, Regulation 17053.49-5 contains rules relating to qualified property, Regulation 17053.49-6 contains rules applicable to leases of qualified property by qualified taxpayers, Regulation 17053.49-7 is reserved, Regulation 17053.49-8 contains recapture rules, Regulation 17053.49-9 contains rules relating to carryforwards, Regulation 17053.49-10 contains general recordkeeping requirements, and Regulation 17053.49-11 contains other miscellaneous provisions. For rules relating to the MIC allowed to taxpayers under the Bank and Corporation Tax Law, see Revenue and Taxation Code Section 23649 and the regulations thereunder.(d)General References. For purposes of Regulations 17053.49-1 through 17053.49-11, inclusive, the following general references shall apply: (1) All citations to the Revenue and Taxation Code are to the California Revenue and Taxation Code.(2) All citations to the Internal Revenue Code are to the Internal Revenue Code of 1986.(3) The credits provided for in Revenue and Taxation Code Sections 17053.49 and 23649 shall be collectively referred to as the "Manufacturers' Investment Credit" or the "MIC."(4) Any reference to a taxpayer's taxable year shall mean the taxable year as defined in Revenue and Taxation Code Section 17010.(5) Any reference to sales or use tax shall mean California sales or use tax imposed under Part 1 (commencing with Section 6001) of Division 2 of the Revenue and Taxation Code. Any discussion of California sales and use tax law in Regulations 17053.49-1 through 17053.49-11, inclusive, is based upon such law as in effect on the date these regulations became effective, and is generally intended to restate the requirements set forth in Revenue and Taxation Code Section 17053.49 and to be illustrative of, but have no effect on, the California sales and use tax law and the regulations thereunder. All examples which contain references to an amount of California sales or use tax shall be at an assumed hypothetical sales or use tax rate of eight percent (8%).(6) Any reference to "Division D of the SIC Manual" shall mean that portion of the SIC Manual which includes Codes 2011 through 3999, inclusive.Cal. Code Regs. Tit. 18, §§ 17053.49-1
1. New section filed 5-1-96; operative 5-31-96 (Register 96, No. 18).
2. Change without regulatory effect amending subsection (d)(6) filed 8-14-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 33). Note: Authority cited: Section 19503, Revenue and Taxation Code. Reference: Section 17053.49, Revenue and Taxation Code.
1. New section filed 5-1-96; operative 5-31-96 (Register 96, No. 18).
2. Change without regulatory effect amending subsection (d)(6) filed 8-14-97 pursuant to section 100, title 1, California Code of Regulations (Register 97, No. 33).