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Tax break proposed for green tech

Proposed legislation would exempt purchase of equipment from sales tax

Posted: February 3, 2010 10:30 p.m.
Updated: February 4, 2010 7:00 a.m.
 
California lawmakers are pushing legislation that would act as a welcome mat to the burgeoning green technology industry by not charging sales tax to businesses that buy eco-friendly equipment.

"It's going to be one of the biggest growth industries to create jobs. We're going to compete for those jobs with states like Florida, Texas and Nevada," state Sen. Tony Strickland, R-Simi Valley, said.

Strickland's legislation would exempt green technology equipment purchases from the state's sales tax.

Strickland said California's sales tax, at 9.25 percent, is a "huge cost factor."

By exempting this cost, California will be competitive as states angle to have such businesses settle on their turf.

On Monday, Strickland joined Gov. Arnold Schwarzenegger and Sen. Alex Padilla at Quallion, a lithium-ion battery manufacturer in Sylmar to announce the legislation, SBX8 22.

Strickland jointly authored SBX8 22 with Padilla, who represents Sylmar.

A leader in the business community welcomed anything that could help green technology flourish.

"Anything that the state of California could do to reduce businesses' costs and to help our water, air and waste facilities is good for business," said Santa Clarita Valley Chamber of Commerce CEO Larry Mankin.

"We're very supportive of that kind of legislation."

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