Asm Grayson Introduces CA Sales Tax Exemption Bill to Attract Growth in Production Jobs

Sacramento, CA -- Today at a panel in the heart of California’s largest manufacturing region, Los Angeles County, the California Manufacturers & Technology Association (CMTA) announced its sales tax exemption legislation, authored and introduced this afternoon by Assemblymember Tim Grayson (D-Concord). CMTA and Assemblymember Grayson have worked closely with the California Taxpayers Association to develop AB 1951, which establishes the California “Manufacturing Attraction and Development Exemption”, designed to eliminate the sales tax on manufacturing equipment purchases in most cases. The tax incentive will be informally titled the CA MADE exemption.

“By focusing on reducing the tax burden to expand manufacturing in California, we can increase the state’s domestic cost competitiveness and create a critical tipping point for long-term capital investments that might otherwise scale-up production in other locations,” said CMTA President Lance Hastings. “This is a critical piece of developing our 10-year plan to exponentially grow California manufacturing and we couldn’t be more excited. We truly appreciate Assemblymember Grayson’s work on this.”

Thirty-eight states currently either have sales and use tax exemptions on manufacturing equipment, or have no sales tax at all, which can only be seen as a competitive disadvantage for California. This dynamic is one of many reasons why we maintain one of the highest tax burdens in the nation.

“Manufacturing is what made California a global hub of innovation and technological progress,” said Assemblymember Grayson. “Every Californian wins when manufacturing grows. Opportunities are created for the middle class, our economy gets stronger, and our state revenues reap benefits from an influx of economic activity. AB 1951 is uniquely designed to send a serious signal to companies across the country that are looking for cost-competitive regions to scale up production, that they can compete here.”

The bill already has 9 co-authors and that number will grow as the legislation moves through the legislative process. Original co-authors include Assemblymembers Ken Cooley, Jim Cooper, Tom Daly, Mike Gipson, Cottie Petrie-Norris, Sharon Quirk-Silva, James Ramos, Rudy Salas, Carlos Villapudua, and Jim Wood.

“This legislation will help keep manufacturing jobs in California, where they belong, and will have a ripple effect on other industries throughout the state,” California Taxpayers Association President Robert Gutierrez said. “A more competitive tax structure helps everyone in this state, because we all benefit when manufacturing jobs are held by Californians."
 

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