California Legislature picks aerospace winner
By Joseph Perkins | Cal Watchdog
An Air Force request for proposal for the next generation stealth bomber is about to hit the street. The contract is worth an estimated $55 billion.
Aerospace giants Lockheed Martin Corp. andNorthrop Grumman – both of which have a major presence here in California – are in a dog fight for the federal contract. Lockheed Martin is teaming up with Boeing, which also has major operations in the Golden State.
However, the Legislature last week voted to grant Lockheed Martin a $420 million tax break to sweeten its bid to build 80 to 100 of the state-of-the-art long-range bombers.
“This tax credit is exactly what the aerospace industry needs to remain competitive for the next decade,” said Assemblyman Steve Fox, D-Palmdale, author of Assembly Bill 2389, which created the Aerospace Industry Tax Credit.
But Northrop Grumman, which was headquartered in Los Angeles until 2011 (when it moved to Northern Virginia), which remains the Golden State’s largest aerospace employer, strenuously disagreed with Fox.
at Cal Watchdog.