Franchise Tax Board

Special Purpose Buildings & Foundations

 

# Item Check/Date
 
SPECIAL PURPOSE BUILDINGS & FOUNDATIONS
 
41.

See R&TC §§17053.49(d)(4) or 23649(d)(4) and CCR, tit. 18, §§17053.49-5(c) or 23649-5(c).

 
42.

Did the taxpayer include costs for the construction or acquisition of a Special Purpose Building and Foundation?

 
43.

Did the qualified taxpayer construct a Special Purpose Building and Foundation principally to function as a

  • General purpose manufacturing, industrial or commercial building

  • Research facility that is used primarily prior to and/or after the manufacturing process; or

  • Storage facility that is used primarily prior to and/or after completion of the manufacturing process?

If yes, it does not qualify for the MIC.

 
44. Is the qualified taxpayer using the Special Purpose Building and Foundation in any of the qualified activities described in the following SIC codes?
  • 2833-2836 Drugs; limited to activities related to biopharmaceutical establishments;
  • 3559 Special Industry Machinery, Not Elsewhere Classified; limited to activities related to semiconductor equipment manufacturing; only for qualified property placed in service on or after January 1, 1997;
  • 3571-3579 Computers & Office Equipment;
  • 3663 Radio & Television, Broadcasting & Communications Equipment; limited to activities related to space satellites & communications satellites & equipment; only for qualified property placed in service on or after January 1, 1996;
  • 3671-3679 Electronic Component & Accessories;
  • 3761-3769 Guided Missiles, Space Vehicles & Parts; limited to activities related to space vehicles and parts;
  • 3812 Search, Detection, Navigation, Guidance, Aeronautical, & Nautical; limited to activities related to space satellites & communications satellites & equipment; only for qualified property placed in service on or after January 1, 1996; or
  • 8731 Commercial Physical & Biological Research; limited to activities related to biotechnology.

Note: Only qualified taxpayers engaged in manufacturing activities described under these SIC codes can include costs paid or incurred for Special Purpose Buildings and Foundations.

 
45. Was the Special Purpose Building and Foundation constructed by the qualified taxpayer for use primarily in:
  • A manufacturing, processing, refining, or fabricating process, or
  • A research or storage facility used primarily in connection with a manufacturing process?

If yes, qualified costs paid or incurred for the Special Purpose Building and Foundation qualify for the credit.