Economic Development

Sacramento, Calif. (September 16, 2025) – Today, the California Manufacturers & Technology Association(CMTA) announced that it secured a 100% success rate on stopping all priority “Breaker” bills during the 2025 legislative session. CMTA also successfully advanced one critical “Maker” bill.

“Breaker” bills are proposals that threaten California’s manufacturing competitiveness by adding new costs, restrictions, or litigation threats that negatively impact the industry and the Californians it employs.

Breaker Bills: Defeated Threats to California Manufacturers

AB 914 (Garcia): Added new fees and regulations, increasing costs for manufacturers.
Would have authorized California Air Resources Board (CARB) to impose new fees and rules on facilities and vehicles, increasing costs across the supply chain.

AB 1018 (Bauer-Kahan): Mandated costly new audits and liability risks.
Would have required costly audits, disclosures, and oversight on automated systems, creating compliance risks for manufacturers using or developing new technologies.

AB 1331 (Elhawary): Limited workplace safety and compliance monitoring.
Would have prohibited employers from using surveillance tools in off-duty areas, complicating compliance and safety efforts.

SB 45 (Padilla): Increased packaging compliance costs.
Would have required tethered caps on beverage containers by 2027 and removed curbside recycling incentives.

SB 222 (Wiener): Drove up energy costs.
Would have allowed new lawsuits against energy companies, leading to gas price hikes of 63% and electricity increases of 55%, costing families $6,200 more annually.

SB 318 (Becker): Expanded costly air district requirements.
Would have broadened permitting obligations for facilities, slowing innovation and raising compliance costs.

SB 684 (Menjivar) & AB 1243 (Addis): Retroactive energy taxes.
Would have required energy producers to pay retroactive fees for decades of emissions, raising costs across California’s economy.

“This year, manufacturers proved once again that when we speak with a united voice, we can both grow opportunities and stop harmful policies that drive jobs and businesses out of California,” said Lance Hastings, President & CEO of CMTA.

CMTA also announced the successful passage of one “Maker” bill. “Maker” bills are legislative proposals that strengthen California’s ability to manufacture goods, expanding opportunities for innovation, investment, and good-paying jobs.

Maker Bills: Building California’s Manufacturing Future

SB 86 (McNerney): Sales and Use Tax Exclusion – Lowers upfront costs for manufacturers.
Extends the California Alternative Energy and Advanced Transportation Financing Authority sales and use tax exclusion program through 2028 and expands eligibility to include fusion energy projects. This keeps California competitive for advanced manufacturing investment and ensures communities and workers benefit.
Status: Passed, headed to the Governor’s desk.

SB 587 (Grayson): Manufacturing Tax Credit – Supports growth and expansion.
Provides a new personal income tax credit for manufacturers starting in 2026, offsetting costs and incentivizing expansion in California.
Status: On hold until next year.

“By securing an important Maker bill and defeating every Breaker bill, CMTA protected California’s competitiveness and ensured manufacturers can continue to grow and thrive in our state,” continued Hastings.

CMTA will continue working with lawmakers, regulators, and industry partners to ensure California remains a state where manufacturers can thrive. For inquiries, please contact CMTA Vice President of Communications, Nina Fisher, at nfisher@cmta.net.

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About CMTA
The California Manufacturers & Technology Association (CMTA) has advocated for pro-growth laws and regulations before the California legislature and administrative agencies since 1918. The total output from manufacturing in California is $300 billion per year, roughly 10 percent of the total economic output of the state. Manufacturers employ 1.3 million Californians paying wages more than $25,000 higher than other non-farm employers in the state.