Thursday, July 3, 2014
SACRAMENTO, Calif. (AP) — A corporate battle over a giant Pentagon contract to build stealth bombers has spilled into the California Legislature, as state lawmakers grudgingly rushed through a $420 million tax credit before adjourning for their summer recess.
The 15-year tax incentive was approved Thursday with two-thirds votes in the Assembly and Senate. AB2389 would benefit one of the two major competitors, a joint bid being submitted by Boeing Co. and Lockheed Martin Corp.
That has angered the other bidder for the $55 billion federal contract, Northrop Grumman Corp. The company says it cannot offer a low enough bid without a similar tax break.
Gov. Jerry Brown, who pushed for the tax credit, and Democratic legislative leaders promised to consider a similar incentive for Northrop after the Legislature returns in August.