Ucilia Wang 09 04 09, 4:42 PM

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Gov. Schwarzenegger Lobbies for Greentech Tax Break

California Gov. Arnold Schwarzenegger showed up at the ground-breaking ceremony of solar panel maker Solyndra Friday morning, and he took the opportunity to tout a bill, AB 1111.

The bill, by state Assemblyman and Republican leader Sam Blakeslee (R-San Luis Obispo), would exempt manufacturers of greentech goods from sales tax.

Solyndra, which has received a $535 million federal loan guarantee to build a second factory in Fremont, Calif., would qualify for the tax break, Schwarzenegger said at the podium.

But the bill is really aimed at finding a new tenant for the space currently occupied by the NUMMI plant in Fremont. The plant was a joint venture between Toyota and General Motors until GM pulled out of the deal during its reorganization. Toyota has since decided to close the auto assembly plant by next March.

California hasn't been a top choice for greentech companies hunting for factory locations. Other states or regional governments have offered hefty incentive packages to lure solar and electric car battery makers.

Solar companies such as SolarWorld and Sanyo have opted to set up operations in Oregon. Earlier this year, Schott Solar opened a factory in New Mexico.

Suntech Power apparently plans to set up its first U.S. panel assembly plant in Arizona (see the WattHead blog).