Senator Roth’s Bill to Incentivize Aerospace Expansion Signed by Governor

October 11, 2023

Sacramento, CA— A bill to incentivize the aerospace industry to locate, stay and expand in California, by Senator Richard D. Roth (D-Riverside), has been signed by the Governor.

“I thank the Governor for signing this important measure to spur the continued growth of California aerospace,” said Senator Roth. “Aerospace was an industry that helped shape the greatness of twentieth-century California, then faded in glory and is now roaring back to life due to the private space sector, fueling our economy and employing thousands in high-tech jobs. Just as we saw with Hollywood, other states are competing with California and luring businesses to their regions, so we must be vigilant to work hard to build sustainable economic resilience. By cultivating an environment of innovation and diligent assessment, California ensures its long-term resurgence in the aerospace arena while charting a course toward enduring economic resilience.”

Amidst the evolving aerospace resurgence, Senator Roth's SB 419 emerges as a beacon of progressive economic strategy. Acknowledging the historical significance of the aerospace industry in shaping California's illustrious past, Roth's legislation acknowledges the sector's newfound vitality catalyzed by the private space sector. This momentum, which now propels the economy and provides gainful employment to multitudes, necessitates vigilant efforts to ensure California's competitive edge in the face of inter-state competition.

Senator Roth's legislation extends the 2014 property tax exemption for space exploration, an initiative pioneered by Assemblymember Al Muratsuchi (D-Torrance), for an additional five years. Roth's legislation encompasses more than mere extension – it introduces transparency and accountability. A key component of the legislation includes commissioning a comprehensive study by the independent Legislative Analyst's Office. This study, slated for completion by January 1, 2028, encompasses a multifaceted evaluation of the exemption's impact, including the quantification of changes in the space flight industry's employment landscape, the transformation of employee compensation, and the augmentation of investment within California's space flight infrastructure.

According to the California Governor’s Office in 2022, “California is already home to nearly one-third of all American space tech companies and more than one in ten of those globally. In the last 11 years, California has attracted nearly half of the nation’s space tech investment capital. This year alone, California has brought in more than 85% of the total capital invested in United States, space-related companies.” Go-Biz Director Dee Dee Myers said, “This industry provides more than 500,000 high-paying jobs and generates more than $66 billion in annual economic activity. That’s more than the agricultural and entertainment industries combined – and it generates more than $7 billion in state and local taxes.”