Rep. Steve Knight (R-Palmdale) has introduced the California Aerospace Innovation Hub Act, which would allow for the creation of special zones where aerospace companies would enjoy tax and regulatory privileges.
“It is the intent of the Legislature to enact legislation that would create geographically based aerospace hubs around existing aerospace manufacturing clusters, and that within the aerospace hubs aerospace manufacturers and related businesses would benefit from special tax preferences, streamlined regulations, and work schedule flexibility,” the measure reads.
According to the Legislative Counsel’s digest of the bill, the law currently provides incentives to encourage industry to locate in California. Examples of such incentives include
“a program that allows local governments to establish a capital investment incentive program to pay a capital investment incentive amount to the proponents of a qualified manufacturing facility in the aerospace business, and a sales and use tax exemption for the gross receipts from the sale of, and the storage, use, or other consumption of, qualified tangible personal property purchased by a person engaged in aerospace products and parts manufacturing for use primarily in manufacturing, processing, refining, fabricating, or recycling of property.”
Knight introduced the measure on Feb. 13. It is now before the Senate Rules Committee.