California lawmakers OK stealth bomber tax break

Governor Jerry Brown (MGNOnline.com)
Governor Jerry Brown (MGNOnline.com)
Set Text Size SmallSet Text Size MediumSet Text Size LargeSet Text Size X-Large
Share
Updated: 7/03 2:09 pm

SACRAMENTO, Calif. (AP) — A corporate battle over a giant Pentagon contract to build stealth bombers has spilled into the California Legislature, as state lawmakers grudgingly rushed through a $420 million tax credit before adjourning for their summer recess.

The 15-year tax incentive was approved Thursday with two-thirds votes in the Assembly and Senate. AB2389 would benefit one of the two major competitors, a joint bid being submitted by Boeing Co. and Lockheed Martin Corp.

That has angered the other bidder for the $55 billion federal contract, Northrup Grumman Corp. The company says it cannot offer a low enough bid without a similar tax break.

Gov. Jerry Brown, who pushed for the tax credit, and Democratic legislative leaders promised to consider a similar incentive for Northrup after the Legislature returns in August.

©2014 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Share
0 Comment(s)
Comments: Show | Hide

Here are the most recent story comments.View All

No comments yet!
NEWSCASTS ON DEMAND

What's On

All content © Copyright 2014 Intermountain West Communications Company. All Rights Reserved. For more information on this site, please read our Privacy Policy and Terms of Service.
You may also view our Sitemap

Inergize Digital This site is hosted and managed by Inergize Digital.
Mobile advertising for this site is available on Local Ad Buy.