By Calif. Assemblymember Marie Waldron (R)
I am happy to report that Senate Bill 90, legislation that will have a major impact on California’s economy, recently passed both houses of the Legislature with bipartisan support. SB 90 was subsequently signed into law by Governor Brown on July 11.
An important provision of SB 90 extends tax credits statewide for the purchase of manufacturing and biotech equipment. The bill was being debated by my colleagues and me on the Local Government Committee in response to previous legislation abolishing California’s Enterprise Zones program, which had just been approved. That bill included provisions granting tax exemptions for manufacturing and biotech equipment for only 4 ½ years.
I was concerned about the limited time frame for these tax exemptions and suggested that SB 90 should be amended to extend the exemptions for 10 years in order to provide a greater stimulus for the state’s economy. Working closely with my committee colleagues, my suggestion became a point of contention which eventually led to amendments extending the tax exemptions from 4 ½ to 8 years. Those tax exemptions are now law.
SB 90 is a $750 million shot of economic adrenalin for California. California will be one of only a handful of states with business incentives promoting both the manufacturing and biotech industries. SB 90 will stimulate employment and manufacturing activity, improve our overall business climate and lead to a stronger economy for all Californians.
My staff will be available at our mobile district office at Fallbrook Library on Aug. 6 from 9:30 to 11:30 a.m.