Tax News

CCH (cch.taxgroup.com) reports:

The California Assembly has passed two budget trailer bills that would (1) revise California's corporation franchise and income tax apportionment formula for qualified taxpayers; (2) increase the research and development alternative incremental credit against personal income and corporation franchise and income taxes and enact a sunset date for the credit; (3) enact a motion picture credit and a commercial production credit against personal income tax and corporation franchise and income taxes; (4) repeal the credentialed teacher retention credit beginning with the 2007 taxable year; (5) enact an exemption for sales of low-sulfur fuel products for use in a vessel's auxiliary engine; (6) enact an exemption for sales of low-sulfur fuel products for use in a vessel's main engine; (7) enact an exemption for fuel and petroleum products sold to or purchased by an air common carrier for consumption or shipment in the conduct of its business as an air common carrier on a domestic flight; and (8) establish property tax assessment procedures for fractionally owned aircraft. At the time this story went to press, the bills were being debated by the Senate, where their passage is uncertain.