The NUMMI car manufacturing plant in Fremont, which closed in March throwing thousands of employees out of a job, will reopen as a joint Toyota-Tesla Motors electric car plant, thanks in part to tax incentives.
The historic announcement was made by Akio Toyoda, president of Toyota; Elon Musk, CEO of Tesla Motors; Governor Arnold Schwarzenegger and Lt. Governor Abel Maldonado on May 20.
Governor Schwarzenegger and other officials said a tax incentive helped in the effort to reopen the plant. The governor pointed to SB 71 (Padilla), signed by the governor on March 24, that established a sales tax exemption for the purchase of green-tech manufacturing equipment. The governor noted that this tax incentive will increase revenue by expanding the number of manufacturing operations in California.
(Cal-Tax: Hopefully, this historic achievement will end the criticism of business tax incentives.) (Source; San Francisco Chronicle, May 21; Governor Arnold Schwarzenegger press release.)
Cal-Taxletter, May 21, 2010
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