Section 23636-1 - The Joint Strike Fighter (JSF) Wage CreditThe Joint Strike Fighter (JSF) Wage Credit -- (See Regulation 23636-0 for Table of Contents.)
(a) In General. The Joint Strike Fighter (JSF) Wage Credit is allowed to any qualified taxpayer for each taxable year beginning on or after January 1, 2001, and before January 1, 2006, in the following amounts: (1) Fifty percent of qualified wages paid or incurred during any taxable year beginning on or after January 1, 2001, and before January 1, 2002.(2) Forty percent of qualified wages paid or incurred during any taxable year beginning on or after January 1, 2002, and before January 1, 2003.(3) Thirty percent of qualified wages paid or incurred during any taxable year beginning on or after January 1, 2003, and before January 1, 2004.(4) Twenty percent of qualified wages paid or incurred during any taxable year beginning on or after January 1, 2004, and before January 1, 2005.(5) Ten percent of qualified wages paid or incurred during any taxable year beginning on or after January 1, 2005, and before January 1, 2006. The credit allowed by Revenue and Taxation Code section 23636 and this regulation shall not exceed ten thousand dollars ($10,000) per year, per qualified employee, subject to reduction as provided in Revenue and Taxation Code section 23636, subsection (c), and this Regulation 23636-5 for employees that are qualified employees for only part of a taxable year.
(b) Joint Strike Fighter Property Credit. The Joint Strike Fighter Property Credit contained in Revenue and Taxation Code section 23637 provides a credit for qualified property and capitalized direct labor costs to construct, modify or install qualified property used to manufacture products for ultimate use in a Joint Strike Fighter. In contrast, the Joint Strike Fighter Wage Credit allowed by Revenue and Taxation Code section 23636 and this regulation provides a credit for certain capitalized direct labor costs to develop and manufacture inventory property designed to be physically installed in or attached to a Joint Strike Fighter.(c) Cross References. Regulation 23636-2 contains definitions applicable to Regulations 23636-1 through 23636-9, inclusive, Regulation 23636-3 contains rules relating to qualified taxpayers, Regulation 23636-4 contains rules relating to qualified wages, Regulation 23636-5 contains rules relating to qualified employees, Regulation 23636-6 contains rules relating to contract bidding, Regulation 23636-7 contains rules relating to carryforwards, Regulation 23636-8 contains general recordkeeping requirements, and Regulation 23636-9 contains other miscellaneous provisions. For rules relating to the JSF Wage Credit allowed to taxpayers under the Personal Income Tax Law, see Revenue and Taxation Code section 17053.36 and the regulations thereunder.(d) General References. For purposes of Regulations 23636-1 through 23636-9, 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, as amended.(3) The credits provided for in Revenue and Taxation Code sections 17053.36 and 23636 shall be collectively referred to as the "Joint Strike Fighter Wage Credit" or the "JSF Wage Credit."(4) Unless otherwise provided, any reference to wages in the examples in this regulation shall mean wages that are direct labor costs, as used in Internal Revenue Code section 263 A and defined in the regulations thereunder, and shall assume that the wages are qualified wages paid to qualified employees to manufacture property in this state for ultimate use in a Joint Strike Fighter. In addition, unless otherwise provided, all examples in this regulation shall assume that the qualified taxpayer's bid to manufacture property for ultimate use in a Joint Strike Fighter reflected a reduction in the amount of the Joint Strike Fighter Wage Credit allowable as provided in Revenue and Taxation Code section 23636, subsection (e), and Regulation 23636-6.Cal. Code Regs. Tit. 18, §§ 23636-1
1. New section filed 1-23-2003; operative 2-22-2003 (Register 2003, No. 4). Note: Authority cited: Section 19503, Revenue and Taxation Code. Reference: Section 23636, Revenue and Taxation Code.
1. New section filed 1-23-2003; operative 2-22-2003 (Register 2003, No. 4).