Sometimes at parties or out at the bar I get myself in trouble for saying that I don’t think Governor Schwarzenegger is half bad. In fact, I think he’s done a lot to make us realize that we have to actually balance the budget of California, which will make a lot of other things possible. If we don’t, it will make a lot of other things impossible. And that’s my point- he’s a realist and sees the big picture. So, maybe now I’m in trouble with you- I don’t know- I hang out with a lot of liberals who are upset anytime I am not wearing fig leaves and eating wheat grass (In and Out Burger is okay, though).

Schwarzenegger just announced a new move that may get me some points at those same parties, though. He is proposing a corporate tax break (stay with me, now) for companies investing in green energy. The Fresno Bee reports:
“The California Alternative Energy and Advanced Transportation Financing Authority would gain new power to exempt from the state sales tax the purchases of alternative energy manufacturing equipment, including for solar, biomass, wind, geothermal, hydroelectricity under 30 megawatts, or other parts used in technology that reduces fossil and nuclear fuels.”

Did you get that? Schwarzenegger wants to eliminate state sales taxes for alternative energy manufacturing equipment. That’s awesome. It will create jobs, help the green industry grow, and while it may take money from the state’s tax revenue, it will pay off dividends down the road.

The Advanced Transportation Financing Authority includes the state Controller, Treasurer, Director of Finance, Energy Commission chairman and Public Utilities Commission president. Formed in 1980, it uses bond money to fund alternative energy projects or grant sales tax exemptions to alternative energy systems installers or “advanced transportation” technology builders. Apparently they only used their power once- to give those breaks to Tesla Motors.  

Lenny Goldberg, executive director of the California Tax Reform Association, a union-backed advocacy group, said it should be done in a “revenue-neutral manner," meaning that if these tax breaks are put into place, others be eliminated. That could be a good idea as well. I recommend cutting any tax break for fossil fuel energy production. We don’t have to go back to handing out money like it’s candy- but we can move forward to giving tax breaks to the companies that are building the products we will use tomorrow.

Green manufacturing accounts for 21% of all green jobs (33,390 total) and that number is sure to only grow. Arizona passed a law last year that gives credits on taxes to renewable energy equipment factories that build in the state. This would be California catching up- and we need to!

California needs to utilize the resources at hand to build for a more stable energy future- that is certain. How it’s going to happen and who is going to pay for it is less certain, for sure. But the green manufacturing sector will only be growing in the future, and California needs to get on that solar powered, no emissions train.

Photo Credit: Adam Russell Ellsworth (via Flickr under CCL)