Sacramento, CA - The California Manufacturers & Technology Association (CMTA) today commended Governor Gray Davis on laying out his proposed budget with tax initiatives designed to reduce the tax burden on the state's consumers and businesses.

"With the pending energy crisis, the business community really needed significant tax relief and the governor, with this proposal, has indicated to us that the state's growth is his priority," said CMTA President Jack M Stewart.

CMTA endorsed initiatives included in the proposal:

1. An increase in the Manufacturers Investment Credit (MIC) from 6 percent to 7 percent
2. An extension of the MIC sunset to January 1, 2008
3. Addition of software developers to the Manufacturers Investment Exemption
4. A sales tax exemption on space launches to include property used in spaceport operations or for assembly, launch, or transport.
5. An increase in the Capital Gains exclusion from 50 percent to 100 percent for the sale of small business stock
6. A subsidy for employers who provide subsidized transit passes to employees

"Among the many important incentives, CMTA is most pleased with the MIC increase and feels it is an important factor in maintaining California's competitive position for attracting and retaining manufacturing firms. We believe the MIC has played a significant role in California's unprecedented economic growth since it was passed in 1993," added Stewart.