Business Incentives and Tax IssuesFront PageManufacturingNewsRegulatory Reform

New Law Provides Tax Relief for State's Space Industry

By April 29, 2014 No Comments

Governor Signs AB 777 (Muratsuchi), a Win for CA Space Industry 

On April 29, 2014, Governor Jerry Brown signed Assembly Bill (AB) 777 authored by Assemblymember Al Muratsuchi (D-Torrance).  AB 777 provides a property tax exemption for the commercial space flight industry. This new law codifies a Board of Equalization advisory legal opinion that rocket propulsion systems qualify for the business inventory tax exemption. The California Chamber of Commerce supported AB 777 as a “job creator” bill.

The LAEDC issued a letter of support for the tax relief in January, to help our growing space commercialization industry cluster compete and create jobs here locally.  Companies such as SpaceX, which employs over 3000 employees in LA County will benefit from AB 777.

In addition, the important related BOE Rule 133 has passed.

Aerospace and Space Commercialization are key industries in L.A. County.  Our region boasts a deep reservoir of skilled talent, an expansive ecosystem of aerospace supplier firms, unmatched trade infrastructure, and unmatched capacity to create, design, build, and export aerospace related technologies, products, services and processes.   Learn more here.