Shrujal Joseph 2015-11-05 04:54:55
On Tuesday, October 27, the United States Department of Defense and Air Force leaders announced the selection of Northrop Grumman Corp. to build the next generation of strategic bombers in California. “The age of our bomber fleet requires new thinking and new capabilities,” said U. S. Defense Secretary Ashton Carter. “Building this bomber is a strategic investment for the next 50 years.” Secretary Carter called the bomber the “back bone” of the Air Force’s future strike and deterrence capabilities. State Senator Richard D. Roth (D-Riverside), himself a retired Air Force major general and author of Senate Bill 718 (2014) which helped bring the project to California, praised the decision in a statement Tuesday afternoon. “I am very pleased that the Air Force’s new strategic bomber aircraft will be built right here in California,” said Senator Roth. “I am proud to have authored Senate Bill 718 last year which was instrumental in ensuring this project comes to our state and creates thousands of new jobs.” SB 718 was critical to securing the project in California by authorizing approximately $500 million in tax credits to the winning contractor if they build a significant portion of the bomber in California. The measure ensures full accountability and that there are no tax “giveaways” by subjecting the credits to annual caps and “sunsetting” them after 15 years. The project is estimated to create 6,500 new jobs in California’s aerospace industry, and the credits are only provided if employees spend at least 80% of their time working in California on the strategic aircraft program. Southern California has been especially hard hit over the years by the loss of federal aerospace funding. Senator Roth’s hard work in passing SB 718 was not only critical to bringing this multi-billion dollar project to California and creating thousands of new jobs, it will furthe enhance manufacturing in the area; parts for the new bomber will be produced and supplied by firms throughout Southern California. Senator Roth added, “Supporting our region’s manufacturers and creating good-paying jobs continues to be one of my top priorities in the Legislature. This project will be a smart investment in our economy and aerospace industry for years to come, and will be critical to keeping our nation safe.”
Published by Moreno Valley Business Journal. View All Articles.