By Staff Reports
(Victor Valley)– Three measures by Senator Knight have had three different outcomes this week.
Senate Bill 998 was written to incentivize aerospace manufacturing companies bidding on large-scale government defense programs was held in Senate Appropriations Committee earlier this week and will be voted on in early August. Senate Bill 415, signed by Governor Brown on Thursday compliments the Space Flight Liability and Immunity Act, authored by Knight and signed into law in 2012, by strengthening passenger waivers, which ultimately protects all involved in this risk inherent industry. Knight is a principal co-author of Assembly Bill 2389 that passed off the Assembly Floor today, which accomplishes the same goal of SB 998 by maintaining and attracting new aerospace jobs for California through different but similarly effective tax credits.
“These bills show the aerospace industry that California is serious about welcoming their business, job opportunities, and their dollars here. The economic benefits would offset any potential cost over the lifetime of one of these projects. An expansion in the existing tax exemptions or credits will help businesses reduce their overall cost per-unit when applying for contracts to remain competitive with other states,” said Senator Knight.
Large aerospace companies in California contract with the Department of Defense for long-term projects that can cost billions of dollars. Recently, the United States Air Force released information about the new Advanced Strategic Aircraft Program (ASAP). One of the biggest constraints on this project is the per-unit cost limit that has been set by the Federal Government. Economic development incentives have become a critical factor in creating lower cost environments and are especially important to California due to its high business costs and regulatory constraints.
“I am excited to have so many co-authors join me on these important measures. With the potential to provide hundreds of jobs directly and hundreds more indirectly through contracts with smaller suppliers, this is a win-win for California. California is losing aerospace contractors and should not take a wait and see approach. Once jobs are reduced or removed from the state, it is unlikely they will return. Plenty of other states are proven cases that incentives do work,” stated Senator Knight.
SB 998 will be voted on in Senate Appropriations Committee sometime in early August when the suspense hearing is scheduled. SB 415 will go into effect January 1, 2015. Assembly Bill 2389 passed off the Assembly Floor today on a 70-2 vote, and will be heard next week in the Senate.