In a post I made on July 16th, I mentioned a Los Angeles Times Article about the proposal of a new enterprise zone around the United Motor Manufacturing Inc. automobile plant in Fremont. The proposal is part of an emergency attempt to keep the plant open. Since the 16th, the story has been popping up in newspapers all over the State of California.
Click here to read articles in The Los Angeles Times, The Sacramento Business Journal, and the Daily Breeze.
According to the Los Angeles Times article, “The plant, which employs about 5,000 people, was opened as a joint venture between Toyota Motor Corp. and then-General Motors Corp. in 1984….” However, “as part of its bankruptcy process, GM said in June that it would abandon the relationship, prompting Toyota to say last week that it ‘must also consider taking necessary steps to dissolve’ ” the manufacturing facility.
The July 16th press conference is interesting to watch, as Senator Wright and his colleagues make the case for tax incentives — including a new California enterprise zone — as a way to save thousands of California jobs. About halfway through, as Senator Wright responds to questions, he indicates that they are considering expanding some of the proposed incentives to manufacturers statewide. The sales tax exemption is of particular interest. This brings back memories of the former California Manufacturing Investment Credit (or MIC), which was discontinued effective January 1, 2004. See FTB Notice 2003-1.
Watch the press conference here, as posted on YouTube by the California Senate Majority Caucus.
Click Here for YouTube Video.