On the heels of the fat new 2014-2015 state budget, California Senate committees are looking at job creator bills supported by the California Chamber of Commerce. With the recovering economy gifting California with a gross domestic product of more than $2 TRILLION and crowning the state as the WORLD’S tenth largest economy, CalChamber’s got plans to sustain those gains for the long term and ensure they benefit all Californians through increased access to economic opportunity.
The Chamber’s “2014 Solutions for a Strong California” spell this out, and propose reducing competitive disadvantages for job creators and investors.
Job Creator Bills
Job creator bills to create a competitive tax environment are SB 998 (Knight; R-Palmdale) and AB 1839 (Gatto; D-Los Angeles). The first bill aims to encourage the aerospace industry to set up shop in California and the second bill focuses on the film and television industry.
The aerospace industry and advanced aeronautics and aerospace companies mean high-pay manufacturing and engineering jobs and substantial tax revenues. It also means support for the thousands of small contractors and businesses that large aerospace projects require.
SB 998 is designed to attract and retain aerospace industry business to California with an increase on the sales and use tax exemption cap for manufacturing equipment for new aerospace projects. It is under consideration by the Senate Appropriations Committee.
Recent U.S. Department of Defense announcements to recapitalize aerospace equipment create opportunities for new investment in California and tax structure is a factor aerospace firms will look at.
AB 1839 is designed to encourage film and television productions to locate or stay in the state with an extended and expanded film and television tax credit. It’s under consideration by the Senate Governance and Finance Committee.
California has been the center of the entertainment industry for a long time, a lucrative industry that produces high-pay middle class jobs and huge tax revenues. But film and television production in the state has been declining because of competition from the 44 other states that offer film and tax incentives.
This competitive drain means California must look at enacting policies to ensure it stays competitive in this area. The first three years of the film and television tax credit have proven that it’s a worthwhile endeavor, supporting more than 20,000 jobs, generating almost $2 billion in spending, and stimulating other economic activity through related vendor goods and services.