Port equipment tax break
Legalisation to provide a partial tax exemption for terminal operators that purchase zero-emission, or near zero-emission, cargo-handling equipment in California has been approved.
It was approved by a California Senate committee on Wednesday 27 April and is in line with the target to make ports in the area greener without significantly increasing the cost of shipping through the ports.
The tax relief equals approximately 4% of the cost of the equipment and hopes to help California’s ports maintain their competitive positions so as not to drive cargo to ports in other regions.
Ports of Los Angeles, Long Beach and Oakland have already adopted different strategies to lead towards an eventual goal of operating all cargo-handling equipment on electricity or batteries.
The tax exemption applies to equipment domiciled at the port and covers cargo-handling equipment at marine terminals and on-dock rail facilities.
It is expected to cost the state approximately $4.6m in revenue but this is only a small fraction of the $9bn generated by the ports in tax revenues and $415bn of trade generated.
The bill is intended to be shepherded through other committees and then put to the full Senate and Legislature, with the aim being to win approval before the legislative session adjourns in August.
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