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SACRAMENTO –Today, Assemblyman Scott Wilk, R-Santa Clarita, motioned a proposal in Budget Sub-4 committee to adjust the Advanced Strategic Aircraft Tax Credit by one year in order to bring the tax credit years in line with the start date of the federal contract for the Long Range Strike Bomber.
“In 2015, California wisely partnered with the aerospace industry when the Legislature passed Senate Bill 718, the aerospace tax credit, which I was a proud coauthor,” said Wilk. “Aerospace has a rich legacy in our state. By extending this tax credit, we are ensuring our region will benefit from high-paying aerospace jobs while benefiting our country's national defense by producing the most technologically advanced bomber in the world.”
Due to the complex federal procurement process, the Long Range Strike Bomber contract that was supposed to be awarded on October 27, 2015 didn't get awarded until February 16, 2016. This change in timeframe caused $25 million of tax credits allotted for the program to go unused. The budget proposal approved today would simply align the tax credit to begin the same year the contract began.
The budget proposal will now be heard later this week in the full Assembly Budget committee.