Gov. Schwarzenegger Signs Legislation for Green Tech Manufacturing Equipment Sales Tax Exemption to Create Jobs GAAS:193:10 | 29-Mar-2010
03/24/2010 GAAS:193:10 FOR IMMEDIATE RELEASE
Gov. Schwarzenegger Signs Legislation for Green Tech Manufacturing Equipment Sales Tax Exemption to Create Jobs
Building on his commitment to clean technology growth in California, Governor Arnold Schwarzenegger today signed SB 71 by Senator Alex Padilla (D-Pacoima) to create a sales tax exemption for the purchase of green tech manufacturing equipment in California. This tax exemption is a part of the Governor’s California Jobs Initiative, a legislative package that will create or retain at least 100,000 jobs.
“California is leading the way with the largest green economy in the nation, creating jobs when they’re needed the most and proving to the world that we can protect our environment and build a stronger economic future at the same time,” said Governor Schwarzenegger. “SB 71 will expand our clean tech industry and bring the green jobs and businesses we need to rebuild California’s economy -- we’re sending a clear message to every entrepreneur and innovator that it pays to invest in a clean future for California.”
California leads the world in environmental technology as the home to 10,209 clean-tech companies and home base to the innovative minds and year-round sunshine that power the clean technology industry. SB 71 will allow California to maintain this competitive edge by expanding the range of projects which may be approved for a sales tax exemption to include all clean-tech manufacturers. This targeted sales tax exemption will not cost the state tax dollars; it will increase revenue by expanding the number of clean technology manufacturing companies with sites in California.
SB 71 encompasses legislation originally co-sponsored by the Governor and Treasurer Bill Lockyer and authored by Assemblymember Sam Blakeslee (R-San Luis Obispo) in 2009, which would have codified and expanded the existing authority of the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA). Previously, CAEATFA could provide a sales tax exemption for the purchase of new manufacturing equipment for zero-emission vehicles; under SB 71 they will now be able to provide an exemption for all clean-tech manufacturers.
“SB 71 will help us jump-start green technology manufacturing and create good-paying jobs with a future for California,” said Treasurer Bill Lockyer. “I’m committed to implementing the program in a way that not only financially benefits businesses, but also helps preserve vital public services by generating revenues the State and local governments need to balance their budgets.”
Governor Schwarzenegger has a strong and proven commitment to all clean energy that will create jobs, influence national policies and create a cleaner environment for future generations. Some of the Governor’s most ambitious actions include:
Million Solar Roofs Initiative: The Governor’s $2.9 billion incentive plan for home and building owners who install solar electric systems, now known as the California Solar Initiative, will lead to one million solar roofs in California by the year 2018, provide 3,000 megawatts of clean energy and reduce greenhouse gas emissions by 3 million tons.
Global Warming Solutions Act of 2006 (AB 32): AB 32 established a first-in-the-world comprehensive program of regulatory and market mechanisms to achieve real, quantifiable, cost-effective reductions of greenhouse gas emissions. The law will reduce carbon emissions in California to 1990 levels by 2020.
Low Carbon Fuel Standard (LCFS): California’s LCFS requires fuel providers to reduce the carbon intensity of transportation fuels sold in the state, dramatically expanding the market for alternative fuels. To start, the LCFS will reduce carbon content in all passenger vehicle fuels sold in California by at least 10 percent by 2020 and more thereafter.
Renewable Portfolio Standard (RPS): Governor Schwarzenegger signed an Executive Order directing the California Air Resources Board to adopt regulations increasing California's Renewable Portfolio Standard to 33 percent by 2020.
Automobile Emissions Standards: After years of fighting the federal government for the authority to implement our greenhouse gas emissions standards for cars, the U.S. Environmental Protection Agency granted California’s waiver and the Obama Administration adopted it for the country.