Voters in California have approved Propositions 30 and 39, both of which are regarded as positives for the solar sector.
Prop 39 modifies the state's corporate state code to be based on sales rather than payroll, thus generating an additional $1.1 billion in revenue annually, the Solar Energy Industries Association (SEIA) explains. For the first five years, half of that revenue will go to solar and other renewable energy initiatives.
‘California voters not only modernized the state's corporate tax structure by passing Prop 39, they indicated their strong support for renewable energy, including expanding solar energy and encouraging related investment over the next five years,’ said Carrie Cullen Hitt, vice president for state affairs for SEIA, in a statement.
Prop 30 increases taxes on high-income earners (more than $500,000 annually) in order to eliminate $6 billion in cuts to California colleges, schools and public safety, SEIA says. Hitt says passage of the initiative provides hope that California's governor, Jerry Brown, and other state leaders will balance the budget while maintaining support for solar.