(May 19, 2004) Three California Chamber-supported tax incentive bills passed the Assembly Revenue and Taxation Committee last week on bipartisan votes, a victory for California businesses.

“Encouraging businesses to continue operating in California is a key factor in keeping California’s economy on the road to recovery,” said Erika Frank, Chamber legislative advocate. “It’s important to provide businesses incentives for making investments in California’s economy and rewarding those that do. The tax benefits for business contained in these bills would offer substantial incentives for employers to bring jobs and business to California.”

The bills that passed the Assembly Revenue and Taxation Committee last week with Chamber support are:

AB 1869 (Maldonado; R- Santa Maria) Sales and Use Tax Exemption: Space Flight. Creates a tax incentive for California companies that are engaged in commercial space launch, helping the state to remain competitive with foreign and domestic competitors. 

Voting Aye: Bermudez (D-Norwalk); Wyland (R-Del Mar); Chavez (D-La Puente); Harman (R- Huntington Beach); Voting No: Laird (D-Santa Cruz); Leno (D- San Francisco). Absent/ abstaining/not voting: Chu (D- Monterey Park).

AB 2328 (Wyland; R-Del Mar) Corporation Tax. Conforms state tax law to federal tax law for the purpose of relieving several unintended consequences that resulted from the passage of the 2002 omnibus federal tax conformity bill.

Voting Aye: Bermudez (D-Norwalk); Wyland (R-Del Mar); Chavez (D-La Puente); Harman (R- Huntington Beach); Voting No: Laird (D-Santa Cruz); Leno (D- San Francisco). Absent/ abstaining/ not voting: Chu (D-Monterey Park).

AB 2365 (Correa; D-Santa Ana) Personal Income and Corporation Taxes: Enterprise Zone. Creates new jobs in California by allowing employers to be eligible for a $1,000 tax credit for a newly created job in manufacturing.

Voting Aye: Bermudez (D-Norwalk); Wyland (R-Del Mar); Chavez (D-La Puente); Harman (R- Huntington Beach); Voting No: Laird (D-Santa Cruz); Leno (D-San Francisco); Chu (D-Monterey Park).

These bills will be heard today by the Assembly Appropriations Committee.  The Chamber is urging employers to contact committee members in support of these bills.

For Assembly Appropriations Committee  contact information or letters of support please visit the Government Relations section of our website at www.calchamber.com.