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Bill Would Expand Stealth Bomber Tax Credit

Bill Would Expand Stealth Bomber Tax Credit
Posted Friday, August 15th 2014 @ 7am  by The Associated Press

Dueling bidders for a major Pentagon stealth bomber contract would be eligible for massive tax credits under a bill before the governor's desk.

Gov. Jerry Brown has been pushing for an aerospace tax credit that could help companies create thousands of jobs near Palmdale.

In July, lawmakers grudgingly approved a $420 million tax credit that would benefit a joint bid being submitted by Boeing Co. and Lockheed Martin Corp.

The fast-tracked deal came over objections from competitor Northrop Grumman Corp., which is seeking a similar tax break.

The bill would provide Northrop the same deal under a commitment from the governor's office and Democratic legislative leaders. It sailed through the Legislature this week; including a 32-4 Senate vote Wednesday.

The credits are contingent on winning the $55 billion bomber contract.

(Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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