Sacramento, Calif. – Governor Newsom’s May Revise proposes to tax manufacturing innovation by permanently capping California’s R&D tax credit.
This credit is a key tool that keeps manufacturing rooted in California. It helps companies develop new products and improve production while supporting high-quality jobs here at home.
Taxing innovation sends a clear signal that California doesn’t value it. Meanwhile, other states like Texas are actively competing to attract these companies and the jobs that follow.
CMTA is urging lawmakers to reject Governor Newsom’s innovation tax and protect California’s manufacturing competitiveness.