California Lawmakers Approve $420 Million Aerospace Tax Credit

California lawmakers sent Governor Jerry Brown a bill granting $420 million in tax credits to aerospace companies looking to help Boeing Co. and Lockheed Martin Corp. build a new U.S. strategic bomber.

The bill would give subcontractors in the state a benefit equivalent to 17.5 percent of wages paid to workers who would build parts for the plane. Boeing and Lockheed may compete with Northrop Grumman Corp. for the contract to build the aircraft.

The new bomber is described by the Air Force as vital to reaching far-flung, heavily defended targets worldwide. The service has said it may buy as many as 100 of them in a program that may top $55 billion, generating billions of dollars in revenue for the contractor chosen to build it.

Bethesda, Maryland-based Lockheed, the biggest U.S. government contractor, and Chicago-based Boeing, which is No. 2, said in October that they planned to bid on the project as a team.

Before it's here, it's on the Bloomberg Terminal.