Subsidy Tracker Individual Entry
stealth bomber production
The value of the subsidy package and the job data were taken from "Brown extends tax credit to Northrop Grumman," Associated Press State & Local, August 15, 2014; available online at: http://www.seattlepi.com/news/article/Brown-signs-tax-credit-extension-for-Northrop-5691679.php. SB 718 text is available at http://leginfo.legislature.ca.gov/faces/billSearchClient.xhtml by searching SB 718 and session year 2013-2014.
A month after passing a controversial tax credit limited to Lockheed Martin (see 2014 $420 million megadeal for the company in California), the state extended the subsidy program to Northrop Grumman. The subsidy, which includes a tax credit equal to 17.5 percent of wages paid to the company's workers, is estimated to be worth $420 million over 15 years. The value of the subsidy reported in the media is based on the SB 718 rules that cap the value of the tax credit at $25 million in years 1 to 5, $28 million in years 6 to 10, and $31 million in years 11 to 15. The subsidy is contingent on the company wining an Air Force contract. Overlaps with main Subsidy Tracker data: none.