By SEMA Washington, D.C., Staff
California Assembly Member Tim Grayson (D-Concord) reintroduced SEMA-supported legislation (AB 52) that would provide businesses with a state tax credit equal to what they pay in local sales tax for qualified manufacturing equipment. AB 52 is scheduled to be heard in the Assembly Committee on Revenue & Taxation on April 17. SEMA members are encouraged to register their support for the bill by clicking here.
Manufacturing is a vital industry in California, accounting for more than 10% of the state’s GDP and employing nearly 8% of the state’s workforce. Thirty-eight states already offer sales-tax exemptions on manufacturing equipment and R&D. By failing to do the same, California risks losing businesses to these states, which can provide a more attractive business environment. In addition, providing incentives for manufacturing and R&D can help the state to attract new businesses and create jobs.
Assembly Member 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, Assembly Member Grayson, along with his wife Tammy, is also an enthusiast. Included in the Grayson’s collection are two classic Ford Mustangs.
For more information, please contact Christian Robinson at christianr@sema.org.