Cap-and-trade will continue in California, thanks to tax breaks for agriculture and businesses, according to U.S. News & World Report via the AP. Cap-and-trade primarily affects businesses that produce greenhouse gases and are required to acquire permits for the carbon they produce.
NFIB strongly opposed the passage of the bill.
“Some believe cap-and-trade only impacts big businesses that buy and sell carbon credits, but the truth is that small businesses and consumers all pay the ultimate price of higher energy costs to produce and deliver goods,” said NFIB/California State Director Tom Scott.
Under the bill, agricultural processing and renewable power generation equipment are exempt from a 4 percent sales and use tax. Those products will remain exempt through 2030. Advocates for the deal argue that money lost from these exemptions will be replace from the revenue generated via cap and trade, reports U.S. News & World Report.