Assembly Passes Aerospace Tax Credit BillThursday, June 26, 2014
A bill that would give California aerospace companies up to $420 million worth of employment tax credits for work on an “advanced strategic aircraft program” has passed the Assembly.
The bill, AB 2389 by Assemblyman Steve Fox (D-Palmdale), would offer credits over 15 years, capped annually at $25 million the first five years, $28 million the next five years and $31 million the final five years.
The bill was developed and fast tracked specifically to help aerospace companies currently bidding on Department of Defense projects, which are due in July, The bill passed on Thursday and will now move to the Senate.
It would particularly benefit the Antelope Valley, home to large operations of major defense contractors, including Lockheed Martin Corp., Boeing Co. and Northrop Grumman Corp.
“We want companies to come to California, but more importantly, we want our homegrown companies to stay and grow right here in the historic home of the aerospace industry,” Fox said in a statement. “The Governor has gone above and beyond to keep California competitive by putting this tax credit together in a mere six weeks.”
Fox’s office claims the bill would directly create 1,100 aerospace jobs in California, and will indirectly create another 4,782 in supporting fields. It’s unclear exactly which program or programs the bill is targeting.
The passage of the bill comes less than a week after Rep. Kevin McCarthy, R-Bakersfield, a big supporter of the aerospace industry, was elected House Majority Leader.
Antelope Valley business leaders expect he will work to bring jobs to the area.