Gov. Arnold Schwarzenegger said "We are leading the way, but we can do much better" on green jobs while speaking in the Coachella Valley today during a press conference aimed at promoting green technology investment and jobs in California. Schwarzenegger and Vickie Bradshaw, secretary of labor and workforce development, arrived for a 9:30 a.m. appearance at Wintec Energy's Carver Field off Dillon Road and Valley View Drive north of Palm Springs.
Schwarzenegger challenged the Legislature to pass his California Jobs Initiative, which includes a green manufacturing equipment tax credit.
Under this credit, there would be no sales tax charged on manufacturing equipment used in green technology. California is one of three states that has not enacted such a tax credit.
"It will send a clear message to every CEO, entrepreneur and innovator if you invest in California, we will invest in you," Schwarzenegger said.
Schwarzenegger introduced the initiative--including incentives for green job training and hiring, a $10,000 tax credit for homebuyers and a streamlined approval process for construction projects--in his State of the State address in January.
That's "almost two months ago," Schwarzenegger said, "We must act quickly. Every day the Legislature doesn't act, we lose jobs."
Assemblyman Manuel Perez, D-Coachella, said the green manufacturing tax credit "is an idea whose time has come. It will make our state more competitive."
But Perez could not say when the lawmakers in Sacramento might act. "We are discussing the issue now. It takes a while," he said.
Kay Hazen, a local business owner who helped create the Coachella Valley Economic Blueprint, a five-year plan for diversifying the local economy, also wants the Legislature to act.
"Translating intentions into reality is really what it's all about. Until the incentives are a reality and jobs created, it's just an intention."
Palm Springs Mayor Steve Pougnet and Bradshaw also spoke.Fred Noble, president of Wintec, also was present.
New companies producing cutting-edge green tech products need the tax credit to keep them in California, Noble said.
Windtec is set to test the prototype of a new gear box, developed by AeroGen, a company in Irvine, that CEO John Cole said could double the electrical output of the valley's windmills.
The gear box is the component at the top of the turbines that is key to keeping the blades turning and producing electricity.
"If we don't get a tax reduction, it increases the cost to start up a factory, which makes us less competitive," said Cole, who plans to start manufacturing this year. "California is a tough place to do business. We would consider Arizona."
The green tech tax credit would “keep them in California to manufacture versus Arizona or Nevada or China,” Noble said. “These guys want to stay in California, and if they get this tax benefit, that would help them cut costs to the point where they won't be forced to leave.”
The tax credit is part of a package of five job creation initiatives Schwarzenegger put forward in his State of the State address in January.
Other measures include employer incentives for training and hiring out-of-work people for green jobs, a $10,000 tax credit for home buyers and a streamlined permitting process to cut frivolous lawsuits against certain construction projects.
Schwarzenegger plans are to fly back to Sacramento after the press conference ended.