California Introduces Manufacturing Tax Credit Legislation
California Assembly Member Tim Grayson (D-Concord) has introduced PRI-supported legislation (AB 904) that would create a new tax credit designed to stimulate long-term capital investments in manufacturing. Industry members are encouraged to register their support for the bill here.
If enacted, AB 904 would provide Golden State manufacturers with over 100 employees with a 5% credit against taxes imposed for the purchase of qualified tangible personal property, such as equipment, machinery, computers or computing software involved in the manufacturing process. Small manufacturers with fewer than 100 employees would be eligible for a 6% tax credit. In both cases, the tax credit covers up to $1,000,000 in qualified investments and may be carried over for up to five years beginning in 2022.
The legislation would help generate new opportunities for California’s manufacturers to invest in the latest production technologies and create high-paying jobs, which is of critical need as the state recovers from the COVID-19 pandemic. AB 904 would also help revitalize California’s diverse workforce and enhance technical skills that lift the entire economy.
Assembly Member Grayson is a member of the SEMA State Automotive Enthusiast Leadership Caucus and was the 2019 winner of SEMA’s Stephen B. McDonald Legislator of the Year award. In addition to being a lawmaker, Assembly Member Grayson, along with his wife Tammy, is also an enthusiast. Included in the Grayson’s collection are two classic Ford Mustangs.