By Michael Shaw, VP, Government Relations
The California Manufacturers & Technology Association (CMTA) is cosponsoring a pair of bills by Senator Cathleen Galgiani (D-Stockton) and Assemblymember Jim Cooper (D-Elk Grove) to extend and improve the sales and use tax exemption (STE) for manufacturing and R&D equipment purchases to enhance this important investment incentive tool. This partnership with the California Taxpayers Association (CalTax) will make the exemption more useful to California companies and provide greater certainty that it will be around for the foreseeable future.
A recent op-ed in the Orange County Register from Kerry Jackson of the Pacific Research Institute highlights the needs from this state tax policy change as a part of a larger effort to create a more competitive investment environment in California. The piece refers to this as a key to “revitalizing manufacturing.”
AB 600 (Cooper) and SB 600 (Galgiani) highlight the importance of manufacturing and R&D investments in California, including green energy, biotech, food processing, and wine production along with advanced manufacturing and other sectors of the industry.
In the coming month, legislative committees start to pick up work with hearings on bills across the policy spectrum. CMTA will continue to lead the charge on STE extension and invite you to participate in this effort by joining with us to make it happen in 2017.
One step you can take right now is to share with us your stories of investments that were aided by the current STE or have been planned for the near future with that exemption in mind. Real world data on the impact of this investment incentive will strengthen the argument of extending the STE now and provide greater usefulness and certainty for the future of manufacturing in California.
Please send your investment stories to Michael Shaw at firstname.lastname@example.org.
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