Brown signs defense industry tax break with hidden Tesla perk

By John Hrabe | Cal Watchdog

Governor Jerry Brown signed into law Thursday a special $420 million corporate tax break for defense contractor Lockheed Martin.

If that wasn’t controversial enough, now word has surfaced that the bill also included a hidden perk for electric auto maker Tesla Motors Inc.

According to a report by Juliet Williams of the Associated Press, an overlooked section of the bill included language to provide tax breaks to companies that manufacture batteries:

“The word ‘battery’ never appears in the bill’s language, but is referenced in an analysis prepared by the Senate Appropriations Committee dated July 3, the last legislative business day before the summer break and the same day lawmakers voted on it. The analysis said tax relief would be available to companies that fall under federal NAICS manufacturing code 3359, which includes ‘battery manufacturing’.”

That perk, signed into law on the 157th birthday of the company’s namesake, Nikola Tesla, is designed to persuade the company to build a new $5 billion manufacturing plant in California.

at Cal Watchdog.