SACRAMENTO – Assembly Speaker Toni G. Atkins (D-San Diego) today released the following statement on the passage of AB 2389, legislation that would help create and retain aerospace industry jobs in the state by providing a tax credit for California companies bidding on the federal Advanced Strategic Aircraft Program:
“Today the Legislature voted to bring badly needed jobs to our state by approving a tax credit for California aerospace companies bidding on the federal Advanced Strategic Aircraft Program or ASAP. AB 2389, described by the California Chamber of Commerce as a ‘job creator’ is one more sign that California is open for business. Under the provisions of AB 2389, if California’s aerospace industry secures the ASAP contract, this will help retain 3000 existing jobs and it will create 1100 direct jobs and 4700 indirect jobs statewide through subcontractor work.
With AB 2389 passing today, and with follow-up legislation in August that will help ensure a level playing field for all California companies bidding on ASAP, I believe we are in a solid position to win these jobs. The defense industry has been estimated to have a multiplier effect of 3.8, so for every dollar California invests we get back $3.80. That means winning the ASAP contract could bring in $1.2 billion in revenue alone to California over the next 15 years. This is a smart investment—the tax credits are capped, they sunset, and they are only triggered if California companies get the ASAP contract.
Last month California Competes announced $28.9 million in tax credits to boost 33 California companies and create thousands of good-paying jobs. AB 2389 allows California Competes to build on that foundation. And the Legislature is committed to ensuring California Competes has adequate funding to continue to help companies large and small start, succeed and grow in our state.”
AB 2389, by Assemblymember Steve Fox (D-Palmdale), passed out of the Legislature on July 3 and now moves to the Governor for signature.
CONTACT: Will Shuck (916) 319-2408
Website of Assembly Speaker Toni G. Atkins: www.asmdc.org/speaker