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Capitol Alert
The latest on California politics and government
December 9, 2013

California will be among states submitting bids to Boeing this week in an effort to land a production facility for the company’s newest commercial jetliner.

An official for Gov. Jerry Brown’s Office of Business and Economic Development, or GO-Biz, confirmed Monday that California will submit a proposal to Boeing ahead of the company’s Tuesday deadline for states to submit proposals to host production of the 777X.

GO-Biz declined to say what incentives, if any, are included in the proposal, though Brown has significant latitude to negotiate.

In a controversial restructuring of California’s enterprise zone program of hiring tax credits this year, the Legislature afforded Brown about $30 million this budget year for tax credits negotiated on a case-by-case basis with the state.

The tax credits, administered under a newly-formed California Competes Tax Committee, can increase to $150 million next budget year and $200 million annually in subsequent years.

The legislation, Assembly Bill 93, also provided a sales tax exemption for manufacturing and biotech research companies. The value of the exemption is potentially significant, applicable to up to $200 million in purchases annually.

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