The legislation (AB 904) would create a new tax credit, either 5 percent or 6 percent, designed to stimulate long-term capital investments in manufacturing
Diamond Bar, Calif.—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, according to SEMA Washington D.C. staff. (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.
For more information, contact Christian Robinson at christianr@sema.org.
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