On Tuesday, California Gov. Arnold Schwarzenegger held a press conference to discuss his plans to make the state a clean tech leader with the help of a job creation package. The press conference was held in front of the massive wind farm in the Palm Springs area. (Unfortunately many of those turbines were built overseas.)
However, growing a domestic wind turbine business needs an infusion of capital, which is not easy to come by in today’s economic climate. To help reduce the impact that the financial crisis is having on clean tech companies in the state, Schwarzenegger is proposing that clean tech manufacturing equipment purchased by California companies be exempt from sales tax. California is one of only three states in the nation that charges a sales tax on manufacturing equipment. Considering the massive price tag that this type of equipment comes with, eliminating the sales tax could be a big budget booster for companies.
During his press conference, Schwarzenegger also touched on other aspects of his jobs initiative:
- $500 million in hiring incentives
- Create a more streamlined process for construction permits
- Extended the homebuyers tax credit
- Tort reform