Manufacturers' media statement on aerospace incentive package
July 1, 2014 Sacramento, CA -- Last week the Assembly passed an economic incentive package, AB 2389, to provide tax credits for jobs that may be created in California related to work on a new advanced strategic aircraft for the United States Air Force. While the organization has no position on the bill at this time, California Manufacturers & Technology Association President Jack Stewart issued the following statement regarding AB 2389:
"California's regulatory and cost climate creates a competitive disadvantage for manufacturing compared with other states and it is therefore extremely unlikely that the state will be chosen as a site for major new manufacturing projects without incentives or regulatory relief. Aerospace jobs provide some of the highest wages among all sectors and such investments result in huge multiplier benefits that flow throughout the economy. We believe that dynamic economic analyses justify the expenditure of state funds for high-multiplier manufacturing projects such as major aerospace investments."