(April 23, 2004) The California Chamber of Commerce is bringing awareness to the new bills introduced in February to bring back the manufacturers investment credit that expired January 1.

“Now is not the time to take away business incentives. The state should instead expand credits aimed at creating and retaining jobs,” said Dominic DiMare, vice president of government relations. “These bills pending in the Legislature would resurrect a $400 million tax credit for manufacturing companies that expired January 1.”

The Los Angeles Economic Development Corporation and the California Department of Finance released statistics stating that California has lost 288,000 manufacturing jobs over the past five years, and manufacturing sales have declined $98.2 billion.

The new manufacturers investment credit bills are:

AB 2991 (Runner; R-Lancaster) Manufacturers Investment Credit. Reinstates the manufacturers investment tax credit that expired at the end of 2003, thereby making California more competitive with other states and restoring a much-needed positive feature to the state's tax system. Assembly Revenue and Taxation Committee hearing May 10.

AB 2070 (Houston- R; Livermore) Manufacturers Investment Credit.  Provides an exemption from the taxes imposed on manufacturers under the sales and use tax law starting January 1. Assembly Revenue and Taxation Committee hearing May 3.

These manufacturers investment credit bills are critical to the recovery of the state’s economy. These bills provide a significant incentive for businesses to invest in California and expand or update their operations. Without such an incentive, California will lose new and expanded business activity to other states that either offer a similar incentive or other incentives to employers.

For more information about these bills, please visit the Government Relations section on our website at www.calchamber.com

Staff Contact: Dominic DiMare