SB 998 Summary

• Increases the sales and use tax exemption limit for manufacturing and research and development equipment from $200,000,000 to $300,000,000 annually for purchases used in new aerospace projects from January 1, 2015, until January 1, 2018.

• Defines "new aerospace project" as manufacturing, design, or testing of aircraft, aircraft engines, guided missiles, space vehicles, propulsion units, or related parts and components that commence in California on or after January 1, 2015, and have not commenced outside the state prior to that date.

• Requires the Board of Equalization to report to the Legislature by January 1, 2017, on the amount of manufacturing and research and development equipment purchased for new aerospace projects since January 1, 2015.

• Requires the Employment Development Department to report to the Legislature by January 1, 2017, on any increase in aerospace manufacturing employment since January 1, 2015.

• Takes effect immediately as a tax levy.