Los Angeles Business Journal

State OKs Tax Credits for Bomber

Thursday, July 3, 2014

State lawmakers on Thursday approved expedited legislation designed to give the state the upper hand in landing subcontracts for a strategic bomber project.

If project contracts come to California, some of the work, possibly big portions, would be done in the Los Angeles area, most likely the Antelope Valley area.

The California Senate approved a fast-tracked measure to grant $420 million in tax credits over 15 years for the project involving veteran military contractors Boeing Co. and Lockheed Martin Corp.

The Assembly quickly followed suit before both houses headed off on a month-long recess.

Assembly Bill 2389 by Democratic Assemblyman Steve Fox and Republican Sen. Steve Knight, both of Palmdale, is meant to help reverse years of industry decline in California. It would provide a tax credit worth 18 percent of wages paid to manufacturing workers.

The approval of the tax credits was reported by the Sacramento Bee on Thursday afternoon.