SACRAMENTO, Calif. /California Newswire/ — Earlier this year, Calif. Assemblymember Al Muratsuchi (D-Torrance), Chair of the Assembly Select Committee on Aerospace, introduced legislation (Assembly Bill 777) to ensure that California has a modern tax policy for the aerospace manufacturing industry, particularly the burgeoning private space exploration manufacturers. This bill is gaining strong bi-partisan support in the Legislature with recent amendments adding 21 co-authors.
AB 777 would exempt rocket propulsion systems from property taxes. Additionally, the bill would create a productive business climate for the state’s aerospace sector and would ensure that California’s space technology innovators stay in business in the state.
“This bill is good for business and good for jobs,” said Assemblymember Muratsuchi, “AB 777 is gaining support in the Legislature, but there is still more work to be done and we are in the process of discussing the details of the policy.” AB 777 successfully passed the Assembly Revenue and Taxation Committee and is now in the Assembly Appropriations Committee.
Chair of the Appropriations Committee, Assemblymember Mike Gatto (D-Los Angeles), stated “Assemblymember Muratsuchi has worked diligently on this bill to encourage the growth of aerospace in California. The recent amendments are a step in the right direction, and I am very pleased that Assemblymember Muratsuchi is receptive and willing to work with the Appropriations Committee on this legislation.”
Space exploration, until very recently, was an entirely government-run industry. However, in recent years, California has seen the emergence of private space companies that put the state at the forefront of this new industry.
“The space exploration sector of the aerospace industry has acted in good faith and AB 777 is an equitable solution that I support,” said Chairman Jerome Horton from the California Board of Equalization.
Assemblymember Muratsuchi represents the 66th Assembly District, which includes the cities of Gardena, Hermosa Beach, Lomita, the Los Angeles communities of Harbor City and Harbor Gateway, Manhattan Beach, Palos Verdes Estates, Rancho Palos Verdes, Redondo Beach, Rolling Hills, Rolling Hills Estates, Torrance and the unincorporated communities of El Camino Village and West Carson.