Subsidy Tracker Individual Entry

Company: 
Northrop Grumman
Parent Company: 
Northrop Grumman
Subsidy Source: 
state
Location: 
California
City: 
Palmdale
County: 
Los Angeles
Project Description: 

stealth bomber production

Year: 
2014
Major Industry of Parent: 
aerospace and military contracting
Specific Industry of Parent: 
aerospace & military contracting
Subsidy Value: 
$420,000,000
Program Name: 
California Competes
Awarding Agency: 
Governor's Office of Business and Economic Development
Type of Subsidy: 
MEGADEAL
Number of Jobs or Training Slots: 
1,500
Source of Data: 

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-f.... SB 718 text is available at http://leginfo.legislature.ca.gov/faces/billSearchClient.xhtml by searching SB 718 and session year 2013-2014.

Notes: 

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.

Source Notes: 
If an online information source is not working, check the Tracker inventory page for an updated link.