|AIAA Endorses California Assembly's Aerospace Tax Credit Act
Bill Encourages Hiring in Aerospace Industry By Offering Tax Credits to Aerospace Employers
June 3, 2013 – Reston, Va. – The American Institute of Aeronautics and Astronautics (AIAA) endorses California State Assembly Bill 927, the “Aerospace Tax Credit Act.” The bill, sponsored by Assemblyman Al Muratsuchi (Dem. – 66th Dist.) would give tax credits to firms that show a net increase in their aerospace sector workforce.
AIAA President Mike Griffin stated: “California Assembly Bill 927, the ‘Aerospace Tax Credit Act,’ is a critical piece of legislation that will ensure that California’s aerospace sector will remain vibrant and strong. The tax credits that the bill extends to aerospace employers in California will encourage those firms to continue to hire employees who will continue to add to the worldwide reputation of California aerospace. Additionally, we applaud the bill’s efforts to encourage employers to hire those men and women who have served our nation in our recent conflicts, and we especially applaud the bill’s emphasis on hiring veterans who have incurred life-changing injuries and disabilities in the service of our nation. The California aerospace sector is one of the main pillars of both California’s and our nation’s economy, and passage of Assembly Bill 927 will ensure that that pillar is a strong one for years to come.”
Under the bill’s provisions, beginning in 2014 an aerospace firm operating in California would receive a $3,000 tax credit for every net full-time qualified employee hired during the calendar year. The bill also incentivizes the hiring of veterans, increasing the tax credit to $4,000 for every veteran hired, and to $5,000 for every veteran hired with a service-connected disability. To qualify for the credits, a firm must be actively engaged in aerospace – including manufacturing, testing, renovating, or converting aircraft or spacecraft, or their control systems or individual parts.