Assembly OKs Tax Breaks on Big Construction Jobs

The Assembly on Monday passed a bill that could save Walt Disney Co. millions of dollars in corporate income taxes should it proceed with plans to build a large resort on what is now the Disneyland parking lot.

The measure, sponsored by Assemblyman Richard Katz (D-Sylmar), would allow Disney and other major businesses to take a 15% tax break on the cost of a construction project worth more than $10 million and creating more than 50 permanent jobs.

The businesses would be able to take an additional 75% tax break on anything they pay toward roads, parks or other infrastructure connected to a construction project.

Disney is a major backer of the bill, which comes at a time when the entertainment giant is considering construction of a second theme park, three new hotels and a large parking structure next to Disneyland in Anaheim. The bill passed 51 to 13 last week but was up for reconsideration Monday.

Opponents of the measure said Monday that it slights small businesses and is a giveaway for major corporations. But Katz and his allies prevailed again by arguing that the bill would stimulate the economy at a time when employers are leaving the state.

The bill passed 49 to 10 and was sent to the Senate for consideration.