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§ 5480.1. Definitions.

10 CA ADC § 5480.1Barclays Official California Code of Regulations

Barclays California Code of Regulations
Title 10. Investment
Chapter 7.72. Rural Investment Tax Exemption
10 CCR § 5480.1
§ 5480.1. Definitions.
Currentness
The following definitions apply to this chapter:
(a) “Applicant” means a natural person or business entity submitting an Application.
(b) “Application” means a written request for an Eligibility Letter submitted to the CIEDB Board containing the information required in Section 5480.2.
(c) “Attainment Date” means the date an entity attains an Investment of one hundred fifty million dollars ($150,000,000) and fills 500 new Direct Jobs plus Supporting Jobs, including a minimum of 175 Direct Jobs, each as described in section 5480.1(i).
(d) “Authorized Applicant Representative” means the Chief Financial Officer, or equivalent, of the Applicant.
(e) “Certification Letter” means a letter written by an Authorized Applicant Representative to the CIEDB Board confirming that the Applicant has attained the required investment of one hundred fifty million ($150,000,000) and filled the 500 new Direct Jobs plus Supporting Jobs, each as described in Section 5480.1(i).
(f) “CIEDB Board” means the board of directors of the California Infrastructure and Economic Development Bank within the California Technology, Trade and Commerce Agency.
(g) “Commencement Date” means the first day of the Applicant's Fiscal Year containing January 1, 2001.
(h) “Direct Jobs” means FTE Employees in the County where the Eligible Facility is located.
(i) “Eligible Entity” means an Applicant that locates or expands an Eligible Facility and complies with all of the following:
(1) The Applicant makes an Investment of at least one hundred fifty million dollars ($150,000,000) in the county in which an Eligible Facility is located. In calculating the Investment, only Investments made between the Commencement Date and the date one year after the Partial Exemption Use Date (unless extended pursuant to an approved Extension Request) shall be included in the calculation;
(2) The Applicant maintains the Investment described in subsection (1) in the Qualified County for at least 24 months following the Attainment Date.
(3) The Applicant creates a minimum of 500 new Direct Jobs plus Supporting Jobs, including a minimum of 175 new Direct Jobs, in the county in which an Eligible Facility is located. In calculating the Direct Jobs and Supporting Jobs, only those Direct Jobs and Supporting Jobs filled between the Commencement Date and the date one year after the Partial Exemption Use Date (unless extended pursuant to an approved Extension Request) shall be included in the calculation. “New” as used in this section means an FTE Employee hired into a position not previously held by another employee of the Applicant.
(4) The Applicant maintains the 500 new Direct Jobs plus Supporting Jobs described in subsection (3) in the Qualified County for at least 24 months following the Attainment Date.
(j) “Eligible Facility” means the physical location within a Qualified County owned or leased by the Eligible Entity.
(k) “Eligibility Letter” means the written notification from the CIEDB Board to the Applicant required pursuant to Revenue and Taxation Code Section 6378.1(g) stating that the Applicant is eligible to request a Partial Exemption.
(l) “Eligible Tangible Personal Property” means ‘Tangible Personal Property' as defined in California Code of Regulations, Title 18, section 1525.7.
(m) “Exemption Allocation Letter” means the written notification from the CIEDB Board stating that the Applicant has received a specified amount of Partial Exemption for the indicated year.
(n) “Extension Request” means a written request by an Applicant to extend by up to 12 months the Attainment Date.
(o) “FTE Employee” means one or more employees collectively employed by the Applicant for 1,750 hours per year and not moved, transferred, or displaced from other California locations owned or operated by the Applicant or related entity. As used in this subsection, “related entity” means an entity that the Applicant owns 51% or more of or another entity that owns 51% or more of the Applicant.
(p) “Intent of Revocation Letter” means written notification from the CIEDB Board to the Board of Equalization and the Applicant stating that the Applicant is no longer an Eligible Entity. The letter shall include the effective date of the revocation, which shall be the date the CIEDB Board determines that the Applicant failed to meet the Eligible Entity requirements in Section 5480.1(i).
(q) “Investment” means money spent by the Applicant in the county where the Eligible Facility is located for the following: Construction, renovation, and acquisition of all lands, structures, real property, rights, rights-of-way, franchises, licenses, easements, and interests acquired or used in the county, including:
(1) The cost of demolishing or removing any buildings or structures;
(2) The cost of all machinery and equipment located in the county; and
(3) The cost of architectural, engineering, and legal services, plans, specifications, estimates, and other expenses necessary or incidental to the construction or acquisition of a building or structure in the county.
(r) “NAICS” means North American Industrial Classification System code published by the United States Office of Management and Budget, 1997 edition.
(s) “Partial Exemption” means an exemption from only those taxes imposed by Sections 6051, 6051.3, 6201, and 6201.3 of the Revenue and Taxation Code on the gross receipts from the sale in this state of, and the storage, use or other consumption in this state of Eligible Tangible Personal Property purchased by an Eligible Entity.
(t) “Partial Exemption Use Date” means the earliest date on which the Eligible Entity purchases the Eligible Tangible Personal Property upon which it applies any Partial Exemption.
(u) “Qualified County” means a California county with an average annual unemployment rate of five percentage points or more above the statewide average for the most recent calendar year as determined by the State of California, Employment Development Department.
(v) “Request” means a request for a Partial Exemption allocation.
(w) “SIC” means the Standard Industrial Classification Manual published by the United States Office of Management and Budget, 1987.
(x) “Supporting Jobs” means the estimated number of full time equivalent employees created in the Eligible County determined by use of the United States Department of Commerce, Bureau of Economic Analysis' Regional Input-Output Multipliers RIMS II for the county.

Credits

Note: Authority cited: Section 11152, Government Code; and Section 6378.1, Revenue and Taxation Code. Reference: Section 6378.1, Revenue and Taxation Code.
History
1. New section filed 8-15-2002; operative 9-14-2002 (Register 2002, No. 33).
This database is current through 4/19/24 Register 2024, No. 16.
Cal. Admin. Code tit. 10, § 5480.1, 10 CA ADC § 5480.1
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