CA Prop 39 good for renewables
With the recent passing of California Proposition 39 comes a new tax structure for stronger funding of renewable energy, according to the Solar Energy Industries Association.
Prior to the passing of California's Prop 39, a tax "loophole" offered corporations the option of reducing their income taxes by moving jobs and investments to other states, which not only lost California jobs but prevented the creation of new jobs from companies who might otherwise have relocated to the state.
Prop 39 now requires multi-state companies to pay taxes based on their sales in California, also known as the "single sales factor."
California's Proposition 39 makes the state's corporate tax structure consistent with most large states like New York, Texas, Michigan and Wisconsin, who have already adopted the tax policy outlined in Prop 39.
The approval will generate an additional $1.1 billion per year in revenue. For the first five years after the passing of the initiative, 50 percent of these funds are set aside for solar, renewables and efficiency projects. After five years, 100 percent of the funds will go to education and the general fund.
"California voters not only modernized the state's corporate tax structure by passing Prop 39, they indicated their strong support for renewable energy, including expanding solar energy and encouraging related investment over the next five years," said Carrie Cullen Hitt, vice president for state affairs, SEIA, in a statement.