California is celebrating a major manufacturing expansion. But taxpayers helped pay for it.
American Lithium Energy has opened its expanded battery factory in Vista, San Diego County, growing from 23,000 to 82,000 square feet.
The company makes advanced batteries for defense and aerospace applications and employs roughly 150 to 200 people locally.
Here’s the catch.
California taxpayers helped finance the expansion with more than $13 million in state grants.
The company says that funding helped attract another $40 million to $50 million from private and federal sources.
So California is using taxpayer money to help keep advanced manufacturing competitive.
Meanwhile, states like Texas and Arizona offer businesses substantially lower corporate tax rates, although those states also use incentives to attract employers.
And here’s the question Sacramento should answer:
Why does California maintain such an expensive business environment that it offers millions in incentives to selected companies, while ordinary taxpayers and businesses are left paying the state’s regular taxes?
Supporters call it an investment in California jobs and manufacturing.
Critics call it picking winners and losers with taxpayer money.
And the taxpayers footing the bill?
They don’t get a special tax break just for staying in California.
