A Santa Ana aerospace company will benefit from a California program designed to increase the energy efficiency of the state’s industrial base.
GKN Aerospace Chem-tronics is getting a $10m sales tax break on the $119m in equipment it is purchasing. The new equipment will be used to create titanium parts enabling Boeing 737 engines to improve fuel economy by running at a hotter temperature. The credit does not have to be used right away; companies have up to three years to use their sales tax credit.
The state has set a goal for itself of reducing carbon emissions by 2030 to 40% lower than its 1990 levels. Per its goal of reducing carbon emissions, California enacted a program five years ago to provide sales tax exclusions up to $100m annually. The aim was to support companies that were making investments to lower energy use and to create fewer greenhouse gas emissions.
The sales tax break has proven a boon to California’s aerospace industry, which faces fierce competition from overseas companies. Aerospace companies here can, with the help of Presentation Folders, explain the innovations that the tax breaks helped fund and how perspective customers can benefit from them.
Moreover, the tax incentives provide job security for California residents, and therefore more taxes for the state, as well as benefiting the environment.
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