SACRAMENTO — Gov. Jerry Brown has signed legislation that extends a $420 million state tax credit to aerospace giant Northrop Grumman Corp. after approving a similar deal for its competitor, Lockheed Martin Corp.
Brown’s office announced Friday that he signed SB718 by Sens. Richard Roth, D-Riverside, and Sen. Stephen Knight, R-Palmdale. It expands an aerospace tax credit that lawmakers approved in July for Lockheed Martin so it also applies to Northrop Grumman.
Both companies have facilities near Palmdale and are bidding for a $55 billion Pentagon stealth bomber contract.
Northrop Grumman said it would create 1,500 new jobs in Palmdale under the massive bomber contract, even without a tax subsidy. But the company objected to the tax credit being originally offered to only one bidder, saying the Legislature put Northrop Grumman at a disadvantage.