Law & Order

California Introduces Manufacturing Equipment Sales Tax Credit Legislation

By SEMA Washington, D.C., Staff

ManufacturingCalifornia Assembly Member Tim Grayson (D-Concord) reintroduced SEMA-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. AB 52 is scheduled to be heard in the Assembly Committee on Revenue & Taxation on April 17. SEMA members are encouraged to register their support for the bill by clicking here.

Manufacturing is a vital industry in California, accounting for more than 10% of the state’s GDP and employing nearly 8% of the state’s workforce. Thirty-eight 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 to 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 to being a lawmaker, Assembly Member Grayson, along with his wife Tammy, is also an enthusiast. Included in the Grayson’s collection are two classic Ford Mustangs.

For more information, please contact Christian Robinson at