Senator Roth Praises Decision to Build New Air Force Stealth Bomber in California
Roth, a retired two-star Air Force general who authored critical legislation to bring the project to California, calls the project a “smart investment” in economy and national security
RIVERSIDE, CA -- Senator Richard D. Roth (D-Riverside) praised the Department of Defense and United States Air Force’s selection today of Northrop Grumman Corp to build the Air Force’s new strategic bomber aircraft in California.
“I am very pleased that the Air Force’s new strategic bomber aircraft will be built right here in California,” said Senator Roth. “I am proud to have authored Senate Bill 718 last year which was instrumental in ensuring this project comes to our state and creates thousands of new jobs. The project will be a smart investment in our economy and aerospace industry, and will be critical to keeping our nation safe.”
Earlier today, U.S. Defense Secretary Ashton Carter and Air Force leaders announced that Northrop Grumman Corp will build the next generation of Air Force strategic bombers.
Southern California has been hard hit over the years by the loss of Pentagon funding in aerospace. This newly awarded project could bring more than 6,500 jobs to the California’s aerospace industry.
New parts for the newly announced strategic bomber will be manufactured and supplied by firms throughout Southern California.
Senator Roth’s SB 718 (2014) was critical to securing the project in California. SB 718 authorized nearly $500 million in tax breaks to the winning contractor if they build a significant portion of the bomber in California.
There is full accountability and no tax giveaways. The credits sunset, are subject to annual caps and are only provided based on jobs that will be created to work on the advanced strategic aircraft program.
Specifically, the credits sunset after 15 years and the credits are capped at $25 million for five years; $28 million for the next five years; and $31 million for the next five years.
The credits are provided only on a qualified employee basis where that employee is spending 80% of their time working in California on the advanced strategic aircraft program.
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