California Assembly Member Tim Grayson (D-Concord) has reintroduced SEMA- and PRI-supported legislation (AB 52) that would provide businesses with a state tax credit equal to what they pay in local sales tax for qualified manufacturing equipment. If enacted, AB 52 would effectively eliminate the sales tax on most manufacturing equipment purchases.

AB 52 is scheduled to be heard in the Assembly Committee on Revenue & Taxation on April 17. Industry members are encouraged to register their support for the bill by clicking here. 

Manufacturing is a vital industry in California, accounting for over 10% of the state’s GDP and employing nearly eight percent of the state’s workforce. A total of 38 states already offer sales tax exemptions on manufacturing equipment and R&D. By failing to do the same, California risks losing businesses to these states, which can provide a more attractive business environment. In addition, providing incentives for manufacturing and R&D can help the state attract new businesses and create jobs. 

Assembly Member Grayson is a member of the SEMA State Automotive Enthusiast Leadership Caucus and was the 2019 winner of SEMA’s Stephen B. McDonald Legislator of the Year award. In addition, Assembly Member Grayson, along with his wife Tammy, is also an auto enthusiast. Included in the Grayson’s collection are two classic Ford Mustangs. 

Voice your support of AB 52 here. For more information, contact Christian Robinson at christianr@sema.org.