BACKERS BEGIN LOBBYING FOR AEROSPACE TAX RELIEF.

Byline: Jim Skeen Daily News Staff Writer

Supporters of a bill to provide tax relief for aerospace companies kicked off a lobbying effort Friday to try to convince key state senators that the proposed legislation is needed for a healthy California economy.

Supporters of the bill - AB 2361 by Assemblyman W.J. ``Pete'' Knight, R-Palmdale - want to target state senators in San Diego and the Bay Area and convince them the bill benefits the entire state, not just the Antelope Valley. The bill faces a crucial vote in a joint Assembly-Senate conference committee after the Legislature reconvenes Aug. 5.

``We're trying to get business back into the Antelope Valley - back into California,'' Knight said. ``We know we've driven business out of California, and we're trying to correct that mistake.''

Knight and Rep. Howard ``Buck'' McKeon, R-Santa Clarita, gathered a group of political and aerospace leaders in Palmdale to discuss the lobbying effort.

``This is the single most important step we can take to put this state back on track for defense and aerospace jobs,'' McKeon said of the bill.

The bill would provide tax credits ranging from 0.5 percent to 1.5 percent per year on sales made to the National Aeronautics and Space Administration or the Defense Department. Activities that would be eligible for credits include research, development, manufacture, assembly, modification and testing of aircraft, guided missiles, space vehicles, avionics and navigational products and services.

If approved, the tax credits would cover sales made after Dec. 30. The law would expire in the year 2001.

The bill was approved by the Assembly but was not heard by the full Senate. The bill's fate will be determined by a six-member tax bill conference committee.

Among the state senators targeted for the lobbying effort are Bill Lockyer, D-Hayward, and Lucy Killea, I-San Diego - both members of the tax conference committee.

Backers of the bill point out losses that California's aerospace industry has suffered, such as the drop in aerospace employment from 363,000 workers in 1987 to 169,000 now.