Amended in Assembly April 16, 2013

Amended in Assembly March 21, 2013

California Legislature—2013–14 Regular Session

Assembly Bill No. 886

Introduced by Assembly begin delete Member end delete begin insert Members end insert Allen begin insert and Ian Calderon end insert

February 22, 2013

An act to add and repeal Division 4 (commencing with Section 64140) of Title 6.7 of the Government Code, and to add and repeal Sections 17053.60, 17053.65, 17053.66, 23660, 23665, and 23666 of the Revenue and Taxation Code, relating to taxation, to take effect immediately, tax levy.

LEGISLATIVE COUNSEL’S DIGEST

AB 886, as amended, Allen. California Transportation Financing Authority: tax credit certificates for exporters and importers: income tax credit.

Existing law creates the California Transportation Financing Authority, with various powers and duties relative to the financing of transportation projects.

This bill would authorize the authority to award tax credit certificates to exporters and importers, as defined, that demonstrate to the satisfaction of the authority that, during the taxable year, they have increased their cargo tonnage or value through California ports and airports by specified amounts or had a net increase in qualified full-time employees hired in California or have incurred capital costs for a cargo facility in California. The bill would authorize an aggregate $500,000,000 in tax credit certificates to be awarded by the authority for taxable years beginning on or after January 1, 2014, and before January 1, 2019, as provided. begin insert The bill would require the authority to provide a report to the Legislature regarding the tax credit certificate program, as provided. end insert The bill would authorize the authority to impose fees to cover its costs, with fees to be deposited in the Job and Trade Competitiveness Fee Account, which the bill would create in the State Treasury. The bill would authorize the authority to borrow money until the time that sufficient fee revenue is available, with loans made to the authority to be repayable solely from revenues in the account.

The bill would make legislative findings and declarations.

The Personal Income Tax Law and the Corporation Tax Law allow various credits against the taxes imposed by those laws.

This bill would, for taxable years beginning on or after January 1, 2014, and before January 1, 2019, allow a credit or credits in an aggregate amount not to exceed $250,000 for a taxable year against the taxes imposed by those laws if a taxpayer receives a tax credit certificate from the authority.

This bill would take effect immediately as a tax levy.

Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Division 4 (commencing with Section 64140) is
added to Title 6.7 of the Government Code, to read:

 

Division 4.  JOB AND TRADE COMPETITIVENESS ACT

 

64140.  

(a) The Legislature finds and declares all of the
following:

(1) California is the international trade leader of the United
States as the gateway to the dynamic economies of the Pacific
Rim. International trade is one of the most important economic
and job creation drivers of the state and a key to the state’s
economic recovery. Together, the three California customs districts
of Los Angeles, San Diego, and San Francisco led the nation by
processing approximately $500 billion in two-way trade value in
2010. The combined California ports of Los Angeles, Long Beach,
and Oakland are the busiest seaports in the nation, handling
approximately 45 percent of all the waterborne containerized cargo
coming into the United States.

(2) California, however, must do more to ensure that California
ports remain competitive, as the Gulf, East Coast, and Mexican
ports work to attract business away from California seaports and
competition intensifies after the expansion of the Panama Canal
in 2014. California ports are taking action to retain market share
by expanding terminal capacity and investing in other trade-related
infrastructure projects, but more needs to be done to protect
California’s vitally important international trade sector, including
creating incentives to maintain and grow new jobs related to
business, manufacturing, and trade in the years ahead.

(3) Providing California tax credits to exporters and importers
through California ports and airports and increasing cargo-moving
capacity at California’s ports and airports will support President
Obama’s national export initiative.

(b) It is the intent of the Legislature to boost exports and imports
through California ports and airports by providing tax credits for
California exporters and importers and by providing tax credits
for increasing cargo-moving capacity.

64141.  

For the purposes of this division, the following terms
have the following meanings:

(a) “Annual full-time equivalent” means either of the following:

(1) In the case of a full-time employee who was paid hourly
qualified wages, “annual full-time equivalent” means the total
number of hours worked for the taxpayer by the employee (not to
exceed 2,000 hours per employee) divided by 2,000.

(2) In the case of a salaried full-time employee, “annual full-time
equivalent” means the total number of weeks worked for the
taxpayer by the employee divided by 52.

(b) “Authority” means the California Transportation Financing
Authority established in Section 64101.

(c) (1) “Capital costs” means all costs and expenses incurred
by one or more exporter or importer in connection with the
acquisition, construction, installation, and equipping of a cargo
facility, including any environmental mitigation undertaken
specifically to reduce the impacts of a cargo facility, during the
period commencing with the date on which the acquisition,
construction, installation, and equipping commences and ending
on the date on which the cargo facility is placed in service.

(2) Capital costs shall include, but not be limited to, the
following:

(A) The costs of acquiring, constructing, installing, equipping,
and financing a cargo facility, including all obligations incurred
for labor and to contractors, subcontractors, builders, and
materialmen.

(B) The costs of acquiring land or rights in land and any cost
incidental thereto, including recording fees.

(C) The costs of contract bonds and of insurance of any kind
that may be required or necessary during the acquisition,
construction, or installation of a cargo facility.

(D) The costs of architectural and engineering services,
including test borings, surveys, estimates, plans, specifications,
preliminary investigations, environmental mitigation, and
supervision of construction, as well as for the performance of all
the duties required by or consequent upon the acquisition,
construction, and installation of a cargo facility.

(E) The costs associated with installation of fixtures and
equipment, surveys, including archaeological and environmental
surveys, site tests and inspections, subsurface site work, excavation,
removal of structures, roadways, and other surface obstructions,
filling, grading, paving, and provisions for drainage, stormwater
retention, installation of utilities, including water, sewerage
treatment, gas, electricity, communications, and similar facilities,
and offsite construction of utility extensions to the boundaries of
the property.

(F) The costs of completing any environmental mitigation.

(G) All other costs of a nature comparable to those described,
including, but not limited to, all project costs required to be
capitalized for federal income tax purposes pursuant to the
provisions of Section 263(a) of Title 26 of the United States Code.

(H) Costs otherwise defined as capital costs incurred by the
exporter or importer where the qualifying taxpayer is the lessee
under a lease that contains a term of not less than five years and
is characterized as a capital lease for federal income tax purposes.

(3) Capital costs shall not include property owned or leased by
the exporter or importer or a related entity before the
commencement of the acquisition, construction, installation, or
equipping of the cargo facility, unless the property was physically
located outside the state for a period of at least one year prior to
the date on which the cargo facility was placed in service.

(4) Capital costs shall not include project costs that were
expended prior to January 1, 2014.

(d) “Cargo facility” means a capital project at a port or airport
in California designed to increase cargo-moving capacity at that
port or airport and that is expended in a taxable year and has a
useful life of five years or more.

(e) “Export cargo tonnage” means the weight of cargo exported
through California ports by an exporter to destinations outside the
United States.

(f) “Export cargo value” means the value of cargo exported
through California airports by an exporter to destinations outside
of the United States as certified by the applicant for a tax credit
certificate.

(g) “Exporter” means a California taxpayer that is the shipper
of record of agricultural products or manufactured goods on an
ocean bill of lading or on an air waybill.

(h) “Import cargo tonnage” means the weight of cargo imported
by an importer through California ports by that importer from
outside the United States.

(i) “Import cargo value” means the value of cargo imported
through California airports by an importer from outside the United
States as certified by the applicant for a tax credit certificate.

(j) “Importer” means a California taxpayer that is the consignee
of record of agricultural products or manufactured goods on an
ocean bill of lading or on an air waybill.

(k) (1) “Qualified full-time employee” means either of the
following:

(A) A qualified employee who was paid qualified wages by the
qualified employer for services of not less than an average of 35
hours per week.

(B) A qualified employee who was a salaried employee and
was paid compensation during the taxable year for full-time
employment, within the meaning of Section 515 of the Labor Code,
by the qualified employer.

(2) A “qualified employee” shall not include any of the
following:

(A) An employee certified as a qualified employee in an
enterprise zone designated in accordance with Chapter 12.8
(commencing with Section 7070) of Division 7 of Title 1.

(B) An employee certified as a qualified disadvantaged
individual in a manufacturing enhancement area designated in
accordance with Section 7073.8.

(C) An employee certified as a qualified employee in a targeted
tax area designated in accordance with Section 7097.

(D) An employee certified as a qualified disadvantaged
individual or a qualified displaced employee in a local agency
military base recovery area (LAMBRA) designated in accordance
with Chapter 12.97 (commencing with Section 7105) of Division
7 of Title 1.

(E) An employee whose wages are included in calculating any
other credit allowed under Part 10 (commencing with Section
17001) or Part 11 (commencing with Section 23001) of Division
2 of the Revenue and Taxation Code.

(l) “Qualified wages” means wages subject to Division 6
(commencing with Section 13000) of the Unemployment Insurance
Code.

(m) “Tax credit certificate” means a certificate awarded by the
authority to an exporter or importer evidencing the right of the
exporter or importer to claim the tax credits provided for in this
division in the amount specified in the certificate.

64142.  

(a) Subject to the limitations in subdivision (f), for
taxable years beginning on or after January 1, 2014, and before
January 1, 2019, the authority may award a tax credit certificate
to a person that is an exporter or importer pursuant to subdivisions
(b), (c), and (d) in an aggregate amount that is not greater than two
hundred fifty thousand dollars ($250,000) for a taxable year.

(b) A tax credit certificate, in an amount specified in subdivision
(a) of Section 17053.60 of the Revenue and Taxation Code or
subdivision (a) of Section 23660 of the Revenue and Taxation
Code, may be awarded by the authority to any of the following:

(1) Exporters that demonstrate to the satisfaction of the authority
that they have increased their export cargo tonnage through
California ports in a taxable year beginning on or after January 1,
2014, and before January 1, 2019, by at least 5 percent over their
export cargo tonnage through California ports for the preceding
taxable year.

(2) Importers that demonstrate to the satisfaction of the authority
that they have increased their import cargo tonnage through
California ports in a taxable year beginning on or after January 1,
2014, and before January 1, 2019, by at least 5 percent over their
import cargo tonnage through California ports for the preceding
taxable year.

(3) Exporters that demonstrate to the satisfaction of the authority
that they have increased their export cargo value through California
airports in a taxable year beginning on or after January 1, 2014,
and before January 1, 2019, by at least 5 percent over their export
cargo value through California airports for the preceding taxable
year.

(4) Importers that demonstrate to the satisfaction of the authority
that they have increased their import cargo value through California
airports in taxable year beginning on or after January 1, 2014, and
before January 1, 2019, by at least 5 percent over their import
cargo value through California airports for the preceding taxable
year.

(5) Exporters or importers that demonstrate to the satisfaction
of the authority that they have exported or imported export or
import cargo tonnage through California ports in excess of 400,000
tons in a taxable year beginning on or after January 1, 2014, and
before January 1, 2019, and that they did not export or import
cargo through California ports in the preceding taxable year.

(6) Exporters and importers that demonstrate to the satisfaction
of the authority that they have exported or imported cargo through
California airports with export or import cargo value in excess of
two hundred fifty thousand dollars ($250,000) in a taxable year
beginning on or after January 1, 2014, and before January 1, 2019,
and that they did not export or import cargo through California
airports in the preceding taxable year.

(c) (1) A tax credit certificate, in an amount specified in
subdivision (a) of Section 17053.65 of the Revenue and Taxation
Code or subdivision (a) of Section 23665 of the Revenue and
Taxation Code, may be awarded by the authority to an exporter
or importer that demonstrates to the satisfaction of the authority
that the exporter or importer had a net increase in qualified
full-time employees hired in California during the taxable year.

(2) The net increase in qualified full-time employees of a
qualified employer shall be determined as provided by this
paragraph:

(A) The net increase in qualified full-time employees shall be
determined on an annual full-time equivalent basis by subtracting
from the amount determined in clause (ii) the amount determined
in clause (i).

(i) The total number of qualified full-time employees employed
in the preceding taxable year by the taxpayer and by any trade or
business acquired by the taxpayer during the current taxable year.

(ii) The total number of full-time employees employed in the
current taxable year by the taxpayer and by any trade or business
acquired during the current taxable year.

(B) For taxpayers that first commence doing business in this
state during the taxable year, the number of full-time employees
for the immediately preceding prior taxable year shall be zero.

(d) A tax credit certificate, in an amount specified in subdivision
(a) of Section 17053.66 of the Revenue and Taxation Code or
subdivision (a) of Section 23666 of the Revenue and Taxation
Code, may be awarded by the authority to an exporter or importer
that demonstrates to the satisfaction of the authority that the
exporter or importer has paid capital costs on a cargo facility in
California during the taxable year.

(e) The authority shall, consistent with the requirements and
criteria of this division and Sections 17053.60, 17053.65, 17053.66,
23660, 23665, and 23666 of the Revenue and Taxation Code, do
all of the following:

(1) Establish a procedure for applicants to apply for the tax
credit certificates, and a process to award those tax credit
certificates on a first-come-first-served basis.

(2) Determine the information necessary to be provided by an
applicant to the authority in order to award the tax credit
certificates.

(3) Develop and provide application forms for use by applicants
for tax credit certificates. The application form shall begin insert allow for
electronic submission and shall end insert provide for inclusion of the
applicant’s taxpayer identification number.

(f) The total amount of tax credit certificates authorized to be
awarded pursuant to subdivisions (b), (c), and (d) in each of the
five calendar years beginning with January 1, 2014, is one hundred
million dollars ($100,000,000), for a total of five hundred million
dollars ($500,000,000), and any portion of that authorization not
awarded in any calendar year may be awarded in a future calendar
year ending before January 1, 2019.

(g) (1) The authority shall establish and charge applicants fees
that it determines are reasonably sufficient to cover all of its costs
in carrying out its responsibilities under this division. The fees
shall be deposited in the Job and Trade Competitiveness Fee
Account, which is hereby established in the State Treasury. Moneys
in the account shall be available, upon appropriation by the
Legislature, to the authority for the purpose of implementing this
division.

(2) Until the time that sufficient revenue is received by the
authority, the authority may borrow any money as may be required
for the purpose of meeting necessary expenses under this division,
not to exceed the amount appropriated. A loan made to the
authority shall be repayable solely from moneys appropriated to
the authority from the Job and Trade Competitiveness Fee Account
and shall not constitute a general obligation of the state for which
the full faith and credit of the state are pledged.

(h) The authority shall determine the amount of each tax credit
pursuant to this division and Sections 17053.60, 17053.65,
17053.66, 23660, 23665, and 23666 of the Revenue and Taxation
Code, and the Franchise Tax Board shall not be responsible for
determining the amount of that tax credit. The authority shall
provide the Franchise Tax Board with an electronic copy of each
tax credit certification awarded by it within 30 days after issuing
the certificate. The tax credit certificate shall include the date of
issuance, the amount of the tax credit, the name, the type of credit
awarded, and taxpayer identification number of the exporter or
importer to which the certificate was awarded.

(i)  begin insert (1) end insert begin insert   end insert The authority shall establish audit procedures of
taxpayers who have been awarded a tax credit certificate to verify
that the tax credit certificate was awarded consistent with the
requirements of this division and Sections 17053.60, 17053.65,
17053.66, 23660, 23665, and 23666 of the Revenue and Taxation
Code. The authority shall conduct audits at random as the authority
deems appropriate.

begin insert

(2) An audit undertaken pursuant to paragraph (1) shall be
conducted within 12 months of the issuance of the tax credit
certificate. The authority shall allow no less than 30 days to
respond to audit findings.

end insert

(j) In the event that the authority determines that any amount
of a tax credit certificate was not awarded consistent with the
requirements of this division or Sections 17053.60, 17053.65,
17053.66, 23660, 23665, and 23666 of the Revenue and Taxation
Code, the authority shall cancel any unapplied amount erroneously
awarded and any previously allowed credit erroneously awarded
shall be recaptured. The authority shall notify the Franchise Tax
Board of any amounts of a tax credit certificate that were
erroneously awarded and were canceled.

(k) The authority may prescribe rules, guidelines, or procedures
necessary or appropriate to carry out the purposes of this division begin insert ,
including, but not limited to, an appeals process for denied or
disqualified applications and audit findings. The guidelines,
policies, and procedures shall provide for the issuance of a
certificate within 30 days of submission of a complete application
and a 14-day response for appeals end insert . Chapter 3.5 (commencing with
Section 11340) of Part 1 of Division 3 of Title 2 does not apply to
any rule, guideline, or procedure prescribed by the authority
pursuant to this subdivision.

(l) A tax credit certificate awarded pursuant to this section shall
not be transferable.

(m) The authority shall notify the taxpayer within 45 days of
either a denial of the tax credit certificate application or an award
of a tax credit certificate.

begin insert

(n) Notwithstanding Section 102315 of the Government Code,
by February 1 of the year following a year in which allocations
are made, the authority shall report to the Legislature on the
program’s activities, including, but not limited to, the number of
allocations, number of jobs created, the amount of capital
investment leveraged, and the volume and value of imports and
exports that received credit certificates. This report may be
included within other annual reporting done by the authority.

end insert begin delete

(n)

end delete

begin insert (o) end insert  This division shall remain in effect only until January 1,
2021, and as of that date is repealed.

SEC. 2.  

Section 17053.60 is added to the Revenue and Taxation
Code, to read:

17053.60.  

(a) (1) For each taxable year beginning on or after
January 1, 2014, and before January 1, 2019, and subject to
subdivision (c), there shall be allowed as a credit against the “net
tax,” as defined in Section 17039, the amount specified in
paragraph (2), to an exporter or importer that has been awarded a
tax credit certificate pursuant to the Job and Trade Competitiveness
Act (Division 4 (commencing with Section 64140) of Title 6.7 of
the Government Code).

(2) (A) If an exporter or importer exported or imported during
the preceding taxable year, the credit amount will be determined
as follows:

(i) The amount of credit allowed for an exporter or importer
that increases exports or imports through ports in California shall
be three dollars and twelve and one-half cents ($3.125) per ton of
increased exports and imports for the taxable year through ports
in California by the exporter or importer.

(ii) The amount of credit allowed for an exporter or importer
that increases exports or imports through airports in California
shall be one thousand dollars ($1,000) for each ten thousand dollars
($10,000) of increased exports and imports for the taxable year
through airports in California by the exporter or importer.

(B) If an exporter or importer did not export or import during
the preceding taxable year, the credit amount shall be determined
as follows:

(i) The amount of credit allowed for an exporter or importer
that exports or imports 400,000 or more tons through ports in
California in a taxable year shall be three dollars and twelve and
one-half cents ($3.125) per ton of exports and imports for the
taxable year through ports in California by the exporter or importer.

(ii) The amount of credit allowed for an exporter or importer
that exports or imports two hundred fifty thousand dollars
($250,000) or more through airports in California shall be one
thousand dollars ($1,000) for each ten thousand dollars ($10,000)
of exports and imports for the taxable year through airports in
California by the exporter or importer.

(b) For purposes of this section:

(1) “Authority” means the California Transportation Financing
Authority established in Section 64101 of the Government Code.

(2) “Exporter” has the same meaning as provided in subdivision
(g) of Section 64141 of the Government Code.

(3) “Importer” has the same meaning as provided in subdivision
(j) of Section 64141 of the Government Code.

(4) “Increased exports or imports” means the difference between
the amount of exports and imports, whether measured by tons or
dollars, in the current taxable year and the preceding taxable year
if the current taxable year has a greater amount of exports or
imports.

(5) “Tax credit certificate” has the same meaning as provided
in subdivision (m) of Section 64141 of the Government Code.

(c) The aggregate amount of credit allowed to a taxpayer under
this section and Sections 17053.65 and 17053.66 shall be no more
than two hundred fifty thousand dollars ($250,000) for a taxable
year and shall be limited to the amount specified in the tax credit
certificate issued to the taxpayer pursuant to the Job and Trade
Competitiveness Act (Division 4 (commencing with Section 64140)
of Title 6.7 of the Government Code).

(d) In the event that the authority notifies the Franchise Tax
Board of any amounts of a tax credit certificate that were
erroneously awarded and were canceled pursuant to subdivision
(j) of Section 64142 of the Government Code, those amounts shall
not be allowed as a credit, and any previously allowed credit shall
be recaptured. The taxpayer shall be liable for any increase in tax
attributable to the recapture of any credit previously allowed under
this section.

(e) In the case where the credit allowed by this section exceeds
the “net tax,” the excess may be carried over to reduce the “net
tax” in the following year, and succeeding nine years, if necessary,
until the credit is exhausted.

(f) This section shall remain in effect only until December 1,
2019, and as of that date is repealed.

SEC. 3.  

Section 17053.65 is added to the Revenue and Taxation
Code, to read:

17053.65.  

(a) For each taxable year beginning on or after
January 1, 2014, and before January 1, 2019, and subject to
subdivision (c), there shall be allowed as a credit against the “net
tax,” as defined in Section 17039, to an exporter or importer that
has been awarded a tax credit certificate pursuant to the Job and
Trade Competitiveness Act (Division 4 (commencing with Section
64140) of Title 6.7 of the Government Code), in an amount equal
to three thousand dollars ($3,000) for each net increase in qualified
full-time employees hired in California during the taxable year by
an exporter or importer, in a taxable year.

(b) For purposes of this section:

(1) “Authority” means the California Transportation Financing
Authority established in Section 64101 of the Government Code.

(2) “Exporter” has the same meaning as provided in subdivision
(g) of Section 64141 of the Government Code.

(3) “Importer” has the same meaning as provided in subdivision
(j) of Section 64141 of the Government Code.

(4) “Qualified full-time employee” has the same meaning as
provided in subdivision (k) of Section 64141 of the Government
Code.

(5) “Tax credit certificate” has the same meaning as provided
in subdivision (m) of Section 64141 of the Government Code.

(c) The aggregate amount of the credit allowed to a taxpayer
under this section and Sections 17053.60 and 17053.66 shall be
no more than two hundred fifty thousand dollars ($250,000) for a
taxable year and shall be limited to the amount specified in the tax
credit certificate issued to the taxpayer pursuant to the Job and
Trade Competitiveness Act (Division 4 (commencing with Section
64140) of Title 6.7 of the Government Code).

(d) In the event that the authority notifies the Franchise Tax
Board of any amounts of a tax credit certificate that were
erroneously awarded and were canceled pursuant to subdivision
(j) of Section 64142 of the Government Code, those amounts shall
not be allowed as a credit, and any previously allowed credit shall
be recaptured. The taxpayer shall be liable for any increase in tax
attributable to the recapture of any credit previously allowed under
this section.

(e) In the case where the credit allowed by this section exceeds
the “net tax,” the excess may be carried over to reduce the “net
tax” in the following year, and succeeding nine years, if necessary,
until the credit is exhausted.

(f) This section shall remain in effect only until December 1,
2019, and as of that date is repealed.

SEC. 4.  

Section 17053.66 is added to the Revenue and Taxation
Code, to read:

17053.66.  

(a) For each taxable year beginning on or after
January 1, 2014, and before January 1, 2019, and subject to
subdivision (c), there shall be allowed as a credit against the “net
tax,” as defined in Section 17039, to an exporter or importer that
has been awarded a tax credit certificate pursuant to the Job and
Trade Competitiveness Act (Division 4 (commencing with Section
64140) of Title 6.7 of the Government Code), in an amount of up
to, but not to exceed, 2 percent of the total capital costs for a cargo
facility constructed in California by an exporter or importer during
a taxable year.

(b) For purposes of this section:

(1) “Authority” means the California Transportation Financing
Authority established in Section 64101 of the Government Code.

(2) “Capital costs” has the same meaning as provided in
subdivision (c) of Section 64141 the Government Code.

(3) “Cargo facility” has the same meaning as provided in
subdivision (d) of Section 64141 of the Government Code.

(4) “Exporter” has the same meaning as provided in subdivision
(g) of Section 64141 of the Government Code.

(5) “Importer” has the same meaning as provided in subdivision
(j) of Section 64141 of the Government Code.

(6) “Tax credit certificate” has the same meaning as provided
in subdivision (m) of Section 64141 of the Government Code.

(c) The aggregate amount of the credit allowed to a taxpayer
under this section and Sections 17053.60 and 17053.65 shall be
no more than two hundred fifty thousand dollars ($250,000) for a
taxable year and shall be limited to the amount specified in the tax
credit certificate issued to the taxpayer pursuant to the Job and
Trade Competitiveness Act (Division 4 (commencing with Section
64140) of Title 6.7 of the Government Code).

(d) In the event that the authority notifies the Franchise Tax
Board of any amounts of a tax credit certificate that were
erroneously awarded and were canceled pursuant to subdivision
(j) of Section 64142 of the Government Code, those amounts shall
not be allowed as a credit, and any previously allowed credit shall
be recaptured. The taxpayer shall be liable for any increase in tax
attributable to the recapture of any credit previously allowed under
this section.

(e) In the case where the credit allowed by this section exceeds
the “net tax,” the excess may be carried over to reduce the “net
tax” in the following year, and succeeding nine years, if necessary,
until the credit is exhausted.

(f) This section shall remain in effect only until December 1,
2019, and as of that date is repealed.

SEC. 5.  

Section 23660 is added to the Revenue and Taxation
Code, to read:

23660.  

(a) (1) For each taxable year beginning on or after
January 1, 2014, and before January 1, 2019, and subject to
subdivision (c), there shall be allowed as a credit against the “tax,”
as defined in Section 23036, an amount specified in paragraph (2),
to an exporter or importer that has been awarded a tax credit
certificate pursuant to the Job and Trade Competitiveness Act
(Division 4 (commencing with Section 64140) of Title 6.7 of the
Government Code).

(2) (A) If an exporter or importer exported or imported during
the preceding taxable year, the credit amount will be determined
as follows:

(i) The amount of credit allowed for an exporter or importer
that increases exports or imports through ports in California shall
be three dollars and twelve and one-half cents ($3.125) per ton of
increased exports and imports for the taxable year through ports
in California by the exporter or importer.

(ii) The amount of credit allowed for an exporter or importer
that increases exports or imports through airports in California
shall be one thousand dollars ($1,000) for each ten thousand dollars
($10,000) of increased exports and imports for the taxable year
through airports in California by the exporter or importer.

(B) If an exporter or importer did not export or import during
the preceding taxable year, the credit amount shall be determined
as follows:

(i) The amount of credit allowed for an exporter or importer
that exports or imports 400,000 or more tons through ports in
California in a taxable year shall be three dollars and twelve and
one-half cents ($3.125) per ton of exports and imports for the
taxable year through ports in California by the exporter or importer.

(ii) The amount of credit allowed for an exporter or importer
that exports or imports two hundred fifty thousand dollars
($250,000) or more through airports in California shall be one
thousand dollars ($1,000) for each ten thousand dollars ($10,000)
of exports and imports for the taxable year through airports in
California by the exporter or importer.

(b) For purposes of this section:

(1) “Authority” means the California Transportation Financing
Authority established in Section 64101 of the Government Code.

(2) “Exporter” has the same meaning as provided in subdivision
(g) of Section 64141 of the Government Code.

(3) “Importer” has the same meaning as provided in subdivision
(j) of Section 64141 of the Government Code.

(4) “Increased exports or imports” means the difference between
the amount of exports and imports, whether measured by tons or
dollars, in the current taxable year and the preceding taxable year
if the current taxable year has a greater amount of exports or
imports.

(5) “Tax credit certificate” has the same meaning as provided
in subdivision (m) of Section 64141 of the Government Code.

(c) The aggregate amount of credit allowed to a taxpayer under
this section and Sections 23665 and 23666 shall be no more than
two hundred fifty thousand dollars ($250,000) for a taxable year
and shall be limited to the amount specified in the tax credit
certificate issued to the taxpayer pursuant to the Job and Trade
Competitiveness Act (Division 4 (commencing with Section 64140)
of Title 6.7 of the Government Code).

(d) In the event that the authority notifies the Franchise Tax
Board of any amounts of a tax credit certificate that were
erroneously awarded and were canceled pursuant to subdivision
(j) of Section 64142 of the Government Code, those amounts shall
not be allowed as a credit, and any previously allowed credit shall
be recaptured. The taxpayer shall be liable for any increase in tax
attributable to the recapture of any credit previously allowed under
this section.

(e) In the case where the credit allowed by this section exceeds
the “tax,” the excess may be carried over to reduce the “tax” in
the following year, and succeeding nine years, if necessary, until
the credit is exhausted.

(f) This section shall remain in effect only until December 1,
2019, and as of that date is repealed.

SEC. 6.  

Section 23665 is added to the Revenue and Taxation
Code, to read:

23665.  

(a) For each taxable year beginning on or after January
1, 2014, and before January 1, 2019, and subject to subdivision
(c), there shall be allowed as a credit against the “tax,” as defined
in Section 23036, to an exporter or importer that has been awarded
a tax credit certificate pursuant to the Job and Trade
Competitiveness Act (Division 4 (commencing with Section 64140)
of Title 6.7 of the Government Code), in an amount equal to three
thousand dollars ($3,000) for each net increase in qualified
full-time employees hired in California during the taxable year by
an exporter or importer, in a taxable year.

(b) For purposes of this section:

(1) “Authority” means the California Transportation Financing
Authority established in Section 64101 of the Government Code.

(2) “Exporter” has the same meaning as provided in subdivision
(g) of Section 64141 of the Government Code.

(3) “Importer” has the same meaning as provided in subdivision
(j) of Section 64141 of the Government Code.

(4) “Qualified full-time employee” has the same meaning as
provided in subdivision (k) of Section 64141 of the Government
Code.

(5) “Tax credit certificate” has the same meaning as provided
in subdivision (m) of Section 64141 of the Government Code.

(c) The aggregate amount of the credit allowed to a taxpayer
under this section and Sections 23660 and 23666 shall be no more
than two hundred fifty thousand dollars ($250,000) for a taxable
year and shall be limited to the amount specified in the tax credit
certificate issued to the taxpayer pursuant to the Job and Trade
Competitiveness Act (Division 4 (commencing with Section 64140)
of Title 6.7 of the Government Code).

(d) In the event that the authority notifies the Franchise Tax
Board of any amounts of a tax credit certificate that were
erroneously awarded and were canceled pursuant to subdivision
(j) of Section 64142 of the Government Code, those amounts shall
not be allowed as a credit, and any previously allowed credit shall
be recaptured. The taxpayer shall be liable for any increase in tax
attributable to the recapture of any credit previously allowed under
this section.

(e) In the case where the credit allowed by this section exceeds
the “tax,” the excess may be carried over to reduce the “tax” in
the following year, and succeeding nine years, if necessary, until
the credit is exhausted.

(f) This section shall remain in effect only until December 1,
2019, and as of that date is repealed.

SEC. 7.  

Section 23666 is added to the Revenue and Taxation
Code, to read:

23666.  

(a) For each taxable year beginning on or after January
1, 2014, and before January 1, 2019, and subject to subdivision
(c), there shall be allowed as a credit against the “tax,” as defined
in Section 23036, to an exporter or importer that has been awarded
a tax credit certificate pursuant to the Job and Trade
Competitiveness Act (Division 4 (commencing with Section 64140)
of Title 6.7 of the Government Code), in an amount of up to, but
not to exceed, 2 percent of the total capital costs for a cargo facility
constructed in California by an exporter or importer during a
taxable year.

(b) For purposes of this section:

(1) “Authority” means the California Transportation Financing
Authority established in Section 64101 of the Government Code.

(2) “Capital costs” has the same meaning as provided in
subdivision (c) of Section 64141 of the Government Code.

(3) “Cargo facility” has the same meaning as provided in
subdivision (d) of the Government Code.

(4) “Exporter” has the same meaning as provided in subdivision
(g) of Section 64141 of the Government Code.

(5) “Importer” has the same meaning as provided in subdivision
(j) of Section 64141 of the Government Code.

(6) “Tax credit certificate” has the same meaning as provided
in subdivision (m) of Section 64141 of the Government Code.

(c) The aggregate amount of the credit allowed to a taxpayer
under this section and Sections 23660 and 23665 shall be no more
than two hundred fifty thousand dollars ($250,000) for a taxable
year and shall be limited to the amount specified in the tax credit
certificate issued to the taxpayer pursuant to the Job and Trade
Competitiveness Act (Division 4 (commencing with Section 64140)
of Title 6.7 of the Government Code).

(d) In the event that the authority notifies the Franchise Tax
Board of any amounts of a tax credit certificate that were
erroneously awarded and were canceled pursuant to subdivision
(j) of Section 64142 of the Government Code, those amounts shall
not be allowed as a credit, and any previously allowed credit shall
be recaptured. The taxpayer shall be liable for any increase in tax
attributable to the recapture of any credit previously allowed under
this section.

(e) In the case where the credit allowed by this section exceeds
the “tax,” the excess may be carried over to reduce the “tax” in
the following year, and succeeding nine years, if necessary, until
the credit is exhausted.

(f) This section shall remain in effect only until December 1,
2019, and as of that date is repealed.

SEC. 8.  

This act provides for a tax levy within the meaning of
Article IV of the Constitution and shall go into immediate effect.