New Law Provides Incentive to Bring Aerospace Jobs to California


An economic incentive program to attract new aerospace jobs to California is now in place with the signing of two California Chamber of Commerce-supported bills.

The CalChamber lists both SB 718 (Roth; D-Riverside; Chapter 189) and AB 2389 (Fox; D-Palmdale; Chapter 116) as job creators because they increase the state’s economic competitiveness and will help attract new aerospace engineering and manufacturing jobs to California.

Strong Message

By signing SB 718 and AB 2389, Governor Edmund G. Brown Jr. has sent a strong message to the aerospace industry that California favors economic policies that make the state more investment-friendly.

For nearly the past century, California has been the home to the world’s most advanced aeronautics and aerospace companies. This industry directly supports thousands of high-pay, high-skill jobs and provides millions of dollars in tax revenue.

Additionally, the aerospace industry has a substantial multiplier effect as it supports thousands of small suppliers and contractors that service large projects.

Aerospace Jobs

SB 718 and AB 2389 create a competitive economic environment to support a new aerospace manufacturing project, which—if located in California—would provide 1,100 direct jobs and more than 5,000 indirect jobs.

In addition to creating jobs, this project is also estimated to generate more than $1 billion in state and local tax revenue.

Both bills provide a narrow tax incentive—capped in both amount and duration—tied to the creation of jobs that would otherwise be located in another state. Without these bills, California would be at a competitive disadvantage and less likely to land this new project.

The ability to meet the state’s economic needs depends on a healthy and competitive California economy. Both bills are an important step toward that goal.

Staff Contact: Jeremy Merz

Previous article‘Job Killer’ Bills Still Alive in Legislature
Next articleFlood of Costly Proposals Moving in Legislature
Jeremy Merz
Jeremy Merz specialized in workers’ compensation, taxation, privacy, transportation and infrastructure issues while a CalChamber policy advocate from December 2011 through December 2016. He now is vice president, state affairs – western region at the American Insurance Association. Merz came to the CalChamber from Downey Brand, LLP, where he represented private defendants in state and federal courts on business litigation, employment law and workers’ compensation litigation. He earned a B.A. in economics from the University of California at Davis and a J.D. with distinction from the McGeorge School of Law, University of the Pacific, where he served on the editorial board of the McGeorge Law Review.