Proposed Amendments to Regulation 1525.4, Manufacturing and Research and Development Equipment

The California Department of Tax and Fee Administration proposes to amend Regulation 1525.4, Manufacturing and Research and Development Equipment. The proposed amendments clarify the regulation and make it consistent with the changes to Revenue and Taxation Code section 6377.1 made by Assembly Bill No. 398 (Stats. 2017, ch. 135) and Assembly Bill No. 131 (Stats. 2017, ch. 252). The statutory changes expanded the definitions of "qualified person" and "qualified tangible personal property"; expanded the partial exemption to apply to qualified tangible personal property purchased for use by a qualified person to be used primarily in the generation or production or storage and distribution of electric power; extended the statute's sunset date; and amended the definition of "useful life."