(

a) For taxable years beginning on or after January 1, 2026, and before January 1, 2036, there shall be allowed to qualified taxpayer, a credit against the “tax,” as defined in

Section 23036, in an amount equal to percent of the qualified expenditures paid or incurred by the qualified taxpayer during the taxable year, not to exceed twenty million dollars ($20,000,000) per qualified taxpayer per taxable year. (

b) For purposes of this section: (1) “Bank” means the California Infrastructure and Economic Development Bank established under

Chapter 2 (commencing with

Section 63021) of Division of Title 6.7 of the Government Code. (2) “Eligible transmission project” has the same meaning as defined in

Section 63049.73 of the Government Code. (3) “Qualified expenditures” means costs paid or incurred for planning, design, engineering, permitting, construction, and equipment directly related to the eligible transmission project or qualified wages paid or incurred to employees of a qualified taxpayer that perform services directly related to the eligible transmission project. (4) “Qualified taxpayer” means a taxpayer that is a participating party, as defined in subdivision (

h) of

section 63049.71 of the Government Code. (5) “Qualified wages” means wages subject to withholding under Division 6 (commencing with

Section 13000) of the Unemployment Insurance Code. (

c) In the case where the credit allowed by this

section exceeds the “tax,” the excess may be carried over to reduce the “tax” in the following taxable year, and succeeding seven years if necessary, until the credit is exhausted. (

d) If the credit allowed by this

section is claimed by the qualified taxpayer, a deduction otherwise allowed under this part for any amount of qualified expenditures paid or incurred by the qualified taxpayer shall be reduced by the amount of the qualified expenditures taken into account in calculating the credit allowed by this section. (

e) If the credit allowed by this

section is claimed by the qualified taxpayer, the taxpayer shall not earn a return on equity for the eligible transmission project pursuant to

Article 10.5 (commencing with

Section 63049.71) of

Chapter of Division of Title 6.7 of the Government Code for the portion of the project for which the credit is claimed. (

f) The bank shall inform the Franchise Tax Board of any eligible transmission project that the bank approves for financial assistance pursuant to subdivision (

i) of

Section 63049.73 of the Government Code and shall provide any other information the Franchise Tax Board requires for administration of the credit allowed by this section. (

g) The Franchise Tax Board may prescribe regulations that are necessary or appropriate to carry out the purposes of this section. (

h) Section shall not apply to this section. (

i) This

section shall remain in effect only until December 1, 2036, and as of that date is repealed.