California Governor Arnold Schwarzenegger signed into law SB 71, a bill that will exempt green manufacturers from paying sales and use taxes on manufacturing equipment to encourage investment in manufacturing, job creation and economic growth in California.
SB 71 targets alternative energy and advanced transportation technology investments that create new, permanent jobs in California and produce quantifiable reductions in the emission of greenhouse gases, reductions in air or water pollution, or increase energy efficiency. The bill requires that projects receiving tax exemptions have a net tax benefit to the state at least equal to the tax benefit of the manufacturer benefiting from the exemption.
It also requires that these projects are targeted in areas with high unemployment. Additionally, SB 71 will ensure accountability by requiring the Legislative Analyst’s Office to report to the Legislature on the effectiveness of the program.
“SB 71 will help us jump-start green technology manufacturing and create good-paying jobs with a future for California,” said the state’s Treasurer Bill Lockyer. “I’m committed to implementing the program in a way that not only financially benefits businesses, but also helps preserve vital public services by generating revenues the state and local governments need to balance their budgets.”