Sa le s & Use T a x E xc lusio n Pro g ra m Disc ussio n o f - - PowerPoint PPT Presentation

▶
sa le s use t a x e xc lusio n pro g ra m
SMART_READER_LITE
LIVE PREVIEW

Sa le s & Use T a x E xc lusio n Pro g ra m Disc ussio n o f - - PowerPoint PPT Presentation

Jan 15, 2024 160 likes •378 views

Sa le s & Use T a x E xc lusio n Pro g ra m Disc ussio n o f Pro po se d Re g ula tio n Ame ndme nts Oc to b e r 22, 2019 We lc o me F o r tho se he re in pe rso n, ple a se sig n in a t the b a c k Co pie s o f the pre se

slide-1
SLIDE 1

Oc to b e r 22, 2019

Sa le s & Use T a x E xc lusio n Pro g ra m

Disc ussio n o f Pro po se d Re g ula tio n Ame ndme nts

slide-2
SLIDE 2
  • F
  • r tho se he re in pe rso n, ple a se sig n in a t the b a c k
  • Co pie s o f the pre se nta tio n a nd pro po se d re g ula tio ns a re

a va ila b le a t the b a c k a nd o n o ur we b site a t:

  • https:/ / www.tre a sure r.c a .g o v/ c a e a tfa / ste / re g ula tio ns/ ind

e x.a sp

  • T

his he a ring is b e ing re c o rde d

  • Pub lic Co mme nt:
  • I

n pe rso n (will b e ta ke n first): ple a se c o me to the fro nt to spe a k in the mic ro pho ne

  • Via we b ina r: Ple a se ra ise yo u ha nd o r type yo ur q ue stio n

in the c o mme nt b o x

We lc o me

2

slide-3
SLIDE 3
  • Sta ff’ s Sta ke ho lde r Pro c e ss & Appro a c h
  • Ove rvie w o f Pro po se d Ame ndme nts
  • Ne xt Ste ps
  • Pub lic Co mme nt

Ag e nda

3

slide-4
SLIDE 4

Re g ula tio n De ve lo pme nt Pro c e ss

4

I ndividua l b rie fing s to pro vide b a c kg ro und a nd so lic it input o n g o a ls a nd po lic y prio ritie s Sta ff de ve lo ps a list o f po te ntia l c ha ng e s Sta ke ho lde r o utre a c h, pro viding list o f po te ntia l c ha ng e s a nd inviting pa rtic ipa tio n a t Bo a rd me e ting Se pte mb e r 9th Bo a rd me e ting to disc uss the pro po se d c ha ng e s a nd so lic it pub lic input Dra ft pro po se d re g ula tio n te xt in lig ht

  • f Bo a rd me e ting

disc ussio n Re le a se te xt fo r c o mme nt a nd ho ld pub lic wo rksho p o n pro po se d te xt Pre se nt fina l dra ft re g ula tio ns to Bo a rd a t No ve mb e r Bo a rd me e ting fo r c o nside ra tio n I f a do pte d b y the Bo a rd, file with OAL a s e me rg e nc y re g ula tio ns to b e e ffe c tive in De c e mb e r Ope n up a pplic a tio ns fo r 2020 in De c e mb e r fo r c o nside ra tio n in F e b rua ry

slide-5
SLIDE 5

Sta ff’ s Appro a c h to Pro po se d Re g ula tio ns

5

Re spo nd to Bo a rd me mb e r prio ritie s a nd inc o rpo ra te pub lic fe e db a c k Ma ke inc re me nta l c ha ng e s a t this time Antic ipa te a dditio na l c ha ng e s ne xt ye a r, a llo wing mo re to so lic it input a nd c o nside r issue s

slide-6
SLIDE 6

Pr

  • pose d Ame ndme nts

to the ST E Pr

  • gr

am Re gulations

6

slide-7
SLIDE 7

Curre nt Co mpe titive Crite ria

  • Ne w Applic a nt (5 po ints)
  • L
  • c a te d in c o unty o f hig h

une mplo yme nt (up to 5 po ints)

  • Co rpo ra te HQ in Ca lifo rnia (1

po int)

  • Sma ll Busine ss (1 po int)
  • Re b uilding due to

e me rg e nc y disa ste r (5 po ints) Pro po se d Co mpe titive Crite ria

  • Co st o f ST

E pe r jo b c re a te d (up to 75 po ints)

  • L
  • c a te d in c o unty o f hig h

une mplo yme nt (up to 50 po ints)

  • T
  • ta l Po llutio n Be ne fits sc o re

g re a te r tha n 0 (AS/ AT / Re c yc ling )(100 po ints)

  • Co rpo ra te HQ in Ca lifo rnia

(15 po ints)

  • Re b uilding o r re lo c a ting due

to na tura l disa ste r (50 po ints)

Applic a tio n Co nside ra tio n Pro c e ss

(Se c tio n 10032(a )(1),(7))

7

  • Co ntinue re vie wing o n a ro lling b a sis until c o mpe titive .
  • Whe n CAE

AT F A re c e ive s Applic a tio ns re q ue sting ST E in e xc e ss o f the sta tuto ry c a p, Applic a tio ns sub mitte d fo r tha t pa rtic ula r Bo a rd me e ting will b e c o nside re d in the o rde r in whic h the y a re ra nke d b a se d o n c o mpe titive c rite ria .

slide-8
SLIDE 8

E xa mple s –

  • Applic a tio n re q ue sts $7,000,000 in ST

E . Pro je c t is a ntic ipa te d to c re a te 10 jo b s a s a re sult o f the ST E . 1 jo b = $700,000 in ST E , the re fo re 30 po ints a wa rde d.

  • Applic a tio n re q ue sts $500,000 in ST

E . Pro je c t is no t a ntic ipa te d to c re a te a ny jo b s a s a re sult o f the ST E . T he re fo re no po ints a wa rde d.

  • Applic a tio n re q ue sts $1,200,000 in ST

E . Pro je c t is a ntic ipa te d to c re a te 1 jo b a s a re sult o f the ST E . 1 jo b = $1,200,000 in ST E , the re fo re 20 po ints a wa rde d.

Pro po se d Co mpe titive Crite rio n Co st o f ST E pe r Jo b Cre a te d

(Se c tio n 10032(a )(7)(B))

8

Po ints fo r Jo b Cre a tio n

  • 1 Job ≤ $50,000 in STE = 75 points
  • $50,000 in STE < 1 Job ≤ $100,000 in STE = 60 points
  • $100,000 in STE < 1 Job ≤ $150,000 in STE = 55 points
  • $150,000 in STE < 1 Job ≤ $200,000 in STE = 45 points
  • $200,000 in STE < 1 Job ≤ $300,000 in STE = 40 points
  • $300,000 in STE < 1 Job ≤ $400,000 in STE = 35 points
  • $400,000 in STE < 1 Job ≤ $750,000 in STE = 30 points
  • $750,000 in STE < 1 Job ≤ $1,500,000 in STE = 20 points
  • 1 Jo b > $1,500,000 in ST

E , o r 0 jo b s c re a te d = 0 po ints

slide-9
SLIDE 9

Pro po se d Co mpe titive Crite ria Une mplo yme nt

(Se c tio n 10032(a )(7)(B))

9

Po ints a re b a se d o n ho w muc h g re a te r the lo c a l une mplo yme nt ra te is in c o mpa riso n to the a nnua l a ve ra g e sta te wide une mplo yme nt ra te , pursua nt to the fo llo wing fo rmula : Po ints = ((lo c a l ra te / sta te ra te ) * 100) – 100 E xa mple :

  • Annua l a ve ra g e sta te wide une mplo yme nt ra te : 5.23%
  • L
  • c a l une mplo yme nt ra te : 7.5%

((7.5%/ 5.23%) * 100) – 100 = 43 po ints

slide-10
SLIDE 10

Cur r e nt Re gulations

  • $20 millio n in ST

E c a p

  • I

f a ny ST E re ma ins a t the e nd o f the ye a r, Applic a nts c a n sub mit a re vise d Applic a tio n fo r re vie w a nd c o nside ra tio n

  • Bo a rd must vo te to ma ke the ST

E a va ila b le , in a dditio na l to vo ting o n e a c h Applic a nt’ s re q ue st

  • ST

E is split e ve nly a mo ng e lig ib le Applic a nts

Annua l Pe r-Applic a nt Ca p

(Se c tio n 10032(a )(4))

10

slide-11
SLIDE 11

Pr

  • pose d Change s
  • L
  • we r c a p to $10 millio n in ST

E

  • I

f a ny ST E re ma ins, ST E is split pro po rtio na lly a mo ng e lig ib le Applic a nts b a se d o n po ints e a rne d fro m e va lua tio n c rite ria

  • E

D will a nno unc e if a ny ST E is a va ila b le , ra the r tha n re q uiring a Bo a rd vo te

  • E

va lua tio n c rite ria (sa me a s pro po se d c o mpe titive c rite ria )

  • Co st o f ST

E pe r jo b c re a te d (up to 75 po ints)

  • Hig h une mplo yme nt c o unty (up to 50 po ints)
  • Pro je c t ma ke s a pro duc t tha t g e ne ra te s e nviro nme nta l

b e ne fits (AS/ AT / RF ) (100 po ints)

  • Co rpo ra te HQ in Ca lifo rnia (15 po ints)
  • Re b uilding o r re lo c a ting due to na tura l disa ste r (50 po ints)

Annua l Pe r-Applic a nt Ca p

(Se c tio n 10032(a )(4))

11

slide-12
SLIDE 12

Re c e iving Additio na l ST E a t the E nd o f the Ye a r (Se c tio n 10032(a )(4))

12 T

  • ta l ST

E Re que st T

  • ta l

Pollution Be ne fit Sc or e > 0 100 pts CA HQ 15pts Une mployme nt Sc or e Up to 50 pts Ne w Jobs Sc or e Up to 75 pts Re build or r e loc a ting a fte r na tur a l disa ste r ? 50 pts T

  • ta l

Sc or e Up to 290 pts

Applic a nt 1 $40 MM 100 15 40 155 Applic a nt 2 $12 MM 15 35 50 100 Applic a nt 3 $20 MM 100 50 55 205

E xample – Additional Awar d Sc or e

slide-13
SLIDE 13

E xample (Continue d) - Alloc ation of Additional ST E

ST E Re ma ining a t e nd o f ye a r: $10,000,000 F ina l Awa rds

Re c e iving Additio na l ST E a t the E nd o f the Ye a r (Se c tio n 10032(a )(4))

13 T

  • ta l ST

E Re que st T

  • ta l

Sc or e Sha r e of Points Initia l Additional Awa r d Sha r e

  • f

Points Se c onda r y Additional Awa r d T

  • ta l Additional

ST E Awa r de d

  • App. 1

$40 MM 155 34% $3,369,565 43% $74,879 $3,444,444

  • App. 2

$12 MM 100 22% $2,000,000 $0 $2,000,000

  • App. 3

$20 MM 205 45% $4,456,522 57% $99,034 $4,555,556

T

  • ta l ST

E Re que st Ca ppe d Awa r d T

  • ta l Additional

ST E Awa r de d T

  • ta l Awa r

d Re ma ining Ask for F utur e Apps

  • App. 1

$40 MM $10MM $3,444,444 $13,444,444 $26,555,556

  • App. 2

$12 MM $10MM $2,000,000 $12,000,000 $0

  • App. 3

$20 MM $10MM $4,555,556 $14,555,556 $5,444,444

slide-14
SLIDE 14
  • No lo ng e r re q uiring a ha rdc o py o f the Applic a tio n pa c ke t –
  • nly a n e le c tro nic ve rsio n. (§10032(a )(2), §10032(b ),

§10036(a )(3))

  • Ask fo r Co rpo ra te He a dq ua rte rs a ddre ss.

(§10032(c )(4)(A)(vii))

  • Must indic a te whe the r the re will b e a ne t re duc tio n in jo b s a t

the F a c ility re sulting fro m the purc ha se a nd use o f the Qua lifie d Pro pe rty (Re q uire d unde r AB 176). (§10032(c )(4)(B)(i)k)

Additio na l Cha ng e s

14

slide-15
SLIDE 15
  • Ope n up po ints c urre ntly o nly a wa rde d to AM pro je c ts fo r R&D,

wo rkfo rc e pa rtne rships, a nd b e ing pa rt o f a n industry c luste r to a ll e lig ib ility pa thwa ys. (§10032(c )(4)(F ) & §10033(c )(E ))

  • E

lig ib ility a nd re vie w o f L e g a l Sta tus Que stio nna ire – (1) no c a se unde r OSHA’ s Se ve re Vio la to r E nfo rc e me nt Pro g ra m, a nd (2) no willful OSHA vio la tio ns. (§10033(b )(3))

  • Upda te L

e g a l Sta tus Que stio nna ire ve rsio n (§10032(c )(2))

  • E

xte nd time fra me to purc ha se 15% o f Qua lifie d Pro pe rty fro m 1 ye a r to 18 mo nths a nd a llo w the Bo a rd to e xte nd upo n a finding o f e xtra o rdina ry c irc umsta nc e s. (§10034(b )(1))

  • E

xtra o rdina ry c irc umsta nc e s ma y inc lude unfo re se e n pe rmitting issue s, b ut do e s no t inc lude a la c k o f funding

Additio na l Cha ng e s

15

slide-16
SLIDE 16
  • Upda te de finitio ns tha t a re missing re fe re nc e s to Adva nc e d

Ma nufa c turing a nd Re c yc le d fe e dsto c k pro je c ts. (§§10031(p),(w))

  • Cla rify tha t c o mpe titive c rite ria o nly a pplie s to the

Applic a tio ns sub mitte d fo r the Bo a rd me e ting a t whic h the Pro g ra m b e c o me s o ve rsub sc rib e d (a nd no t to Applic a tio ns c urre ntly unde r re vie w fo r a n e a rlie r Bo a rd me e ting ). (§10032(a )(7))

  • Cla rify tha t AM pro je c ts do no t ha ve a “T
  • ta l Po llutio n

Be ne fits” c a lc ula tio n a s AS, AT , a nd Re c yc ling pro je c ts do unde r Se c tio ns 10033(c )(4)(C),(E ). (§10033(c )(4))

  • Cla rify Administra tive F

e e la ng ua g e to e xpla in whe n a nd ho w fe e s a re pa id. (§10031(a ) & §10036(b )(5))

  • Upda te / fix sta tute a nd re g ula tio n se c tio n re fe re nc e s

thro ug ho ut.

Cla rifying a nd T e c hnic a l Ame ndme nts

16

slide-17
SLIDE 17

Re que st for Input on Othe r Pote ntial Modific ations not in Cur r e nt Pr

  • pose d T

e xt

17

slide-18
SLIDE 18
  • AB 176 re q uire s CAE

AT F A to c o nside r: “T he e xte nt to whic h the pro je c t will c re a te ne w, o r re sult in the lo ss o f, pe rma ne nt, full-time jo b s in Ca lifo rnia , inc luding the a ve ra g e a nd minimum wa g e fo r e a c h c la ssific a tio n o f full-time e mplo ye e s pro po se d to b e hire d o r no t re ta ine d.”

  • Qua lity o f Jo b s (e x: re tire me nt pla n, he a lth b e ne fits,

c o ntrib utio n a mo unts, e tc .)

  • Additio na l Wo rkpla c e Sa fe ty Re q uire me nts
  • I

nc o rpo ra ting a nd q ua ntifying sho rt-live d c lima te po lluta nt re duc tio n a s a se pa ra te c rite rio n

Othe r Po te ntia l Mo dific a tio ns

18

slide-19
SLIDE 19

Ne xt Ste ps

19

I ndividua l b rie fing s to pro vide b a c kg ro und a nd so lic it input o n g o a ls a nd po lic y prio ritie s Sta ff de ve lo ps a list o f po te ntia l c ha ng e s Sta ke ho lde r o utre a c h, pro viding list o f po te ntia l c ha ng e s a nd inviting pa rtic ipa tio n a t Bo a rd me e ting Se pte mb e r 9th Bo a rd me e ting to disc uss the pro po se d c ha ng e s a nd so lic it pub lic input Dra ft pro po se d re g ula tio n te xt in lig ht

  • f Bo a rd me e ting

disc ussio n Re le a se te xt fo r c o mme nt a nd ho ld pub lic wo rksho p o n pro po se d te xt Pre se nt fina l dra ft re g ula tio ns to Bo a rd a t No ve mb e r Bo a rd me e ting fo r c o nside ra tio n I f a do pte d b y the Bo a rd, file with OAL a s e me rg e nc y re g ula tio ns to b e e ffe c tive in De c e mb e r Ope n up a pplic a tio ns fo r 2020 in De c e mb e r fo r c o nside ra tio n in F e b rua ry

slide-20
SLIDE 20
  • Oc to b e r 29, 2019 - Writte n c o mme nts will b e a c c e pte d until 5:00

p.m.

  • Ple a se sub mit to : Xe e .Mo ua @ sto .c a .g o v
  • No ve mb e r 19, 2019 - Pro po se d re g ula tio ns b ro ug ht to CAE

AT F A Bo a rd fo r a ppro va l

  • Sta rt 5 Da y No tic e o f E

me rg e nc y Re g ula tio ns

  • No ve mb e r 27, 2019 - Sub mit re g ula tio ns to Offic e o f

Administra tive L a w fo r re vie w a nd a ppro va l

  • 10 da y re vie w pe rio d
  • De c e mb e r 9, 2019 - Re g ula tio ns e ffe c tive
  • De c e mb e r 20, 2019 - Applic a tio n de a dline fo r F

e b rua ry 18, 2020 Bo a rd Me e ting

T e nta tive T ime line

20

slide-21
SLIDE 21

Public Comme nt

21