SB 2042

ON MARCH 30, 2026, THE HOUSE ADOPTED AMENDMENT #1 TO HOUSE BILL 1978. HOUSE BILL 1978 FAILED TO RECEIVE A CONSTITUTIONAL MAJORITY AND WAS REFERRED TO COMMITTEE. AMENDMENT #1 r ewrites this bill to make the following changes to the sales and use tax exemption on qualified building materials used in the construction, expansion, or renovation of one or more qualified, new, or expanded warehouse or distribution facilities: (1) Present law defines "qualified building materials"" to mean tangible personal property purchased during the period between July 1, 2019, and December 31, 2026, that becomes part of the real property comprising the facility. This amendment adds t angible personal property purchased during the period between July 1, 2026, and December 31, 2032, that becomes part of the real property comprising the facility ; (2) In order to qualify for the exemption, present law requires that the taxpayer or a lessor, or both, makes a capital investment of at least $1, 000, 000, 000 in the construction or renovation of the f acilities and related facilities at the same location within the qualified capital investment period . Present law defines ""qualified investment period"" to mean a period beginning on or after January 1, 2019, and ending no later than December 31, 2026 . This amendment adds a period beginning on or after Janua ry 1, 2026, and ending no later than December 31, 2032 ; and (3) To facilitate qualified taxpayers claiming an exemption under the expanded definitions in (1) and (2), this amendment establishes a new application period that will close October 1, 2026."