10 CCR s 5480.1

Cal. Admin. Code tit. 10, s 5480.1

CALIFORNIA CODE OF REGULATIONS
TITLE 10. INVESTMENT
CHAPTER 7.72. RURAL INVESTMENT TAX EXEMPTION
This database is current through 01/05/07, Register 2007, No. 1.
s 5480.1. Definitions.

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.

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).

10 CCR s 5480.1, 10 CA ADC s 5480.1
1CAC

10 CA ADC s 5480.1

END OF DOCUMENT