California AB2377 offers tax incentives for new manufacturing operations by allowing accelerated depreciation deductions.

California AB2377 introduces a tax incentive for new manufacturing operations by allowing accelerated depreciation deductions. For taxable years starting between 2027 and 2031, qualified property placed in service in the state can receive a depreciation deduction of 50 percent of its adjusted basis. If the property is located in a high-need area, the deduction increases to 100 percent. The deduction applies to machinery, equipment, data-processing equipment, and pollution control property. The Franchise Tax Board will monitor and report on the use of these deductions.

California AB2377 offers tax incentives for new manufacturing operations by allowing accelerated depreciation deductions.

California AB2377 introduces a tax incentive for new manufacturing operations by allowing accelerated depreciation deductions. For taxable years starting between 2027 and 2031, qualified property placed in service in the state can receive a depreciation deduction of 50 percent of its adjusted basis. If the property is located in a high-need area, the deduction increases to 100 percent. The deduction applies to machinery, equipment, data-processing equipment, and pollution control property. The Franchise Tax Board will monitor and report on the use of these deductions.