SACRAMENTO — Gov. Jerry Brown announced Thursday that he signed legislation that creates a $420 million tax credit for aerospace contractor Lockheed Martin and includes similar tax incentives designed to benefit California-based electric car maker Tesla Motors Inc.
California is one of five states competing for a $5 billion Tesla battery manufacturing plant, but Brown’s administration has largely declined to discuss what the state is doing to persuade the company to build it in its home state.
A legislative debate that lasted for hours July 3 over AB2389 by Assemblyman Steve Fox, D-Palmdale, focused nearly entirely on the 15-year tax incentive for Lockheed Martin Corp., which is bidding for a $55 billion federal aerospace contract. Competitor Northrop Grumman Corp. complained it was unfair.