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Friday, 09 April 2021 22:45

California Introduces Manufacturing Tax Credit Legislation

Written by SEMA Editors

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California Assembly Member Tim Grayson (D-Concord) introduced SEMA-supported legislation, AB 904, that would create a new tax credit designed to stimulate long-term capital investments in manufacturing.

SEMA members are encouraged to register their support for the bill by clicking here.

 

If enacted, AB 904 would provide Golden State manufacturers with more than 100 employees with a 5% credit against taxes imposed for the purchase of qualified tangible personal property, such as equipment, machinery, computers or computing software involved in the manufacturing process. Small manufacturers with fewer than 100 employees would be eligible for a 6% tax credit.

 

This is especially important to SEMA’s member companies, of which 92% employ less than 100 individuals. In both cases, the tax credit covers up to $1 million in qualified investments and may be carried over for up to five years beginning in 2022.

 

Grayson is a member of the SEMA State Automotive Enthusiast Leadership Caucus and was the 2019 winner of SEMA’s Stephen B. McDonald Legislator of the Year award. In addition to being a lawmaker, Grayson, along with his wife Tammy, is also an enthusiast. Included in the Graysons' collection are two classic Ford Mustangs.

 

For more information, contact Christian Robinson at christianr@sema.org.

 

Source: SEMA