Ten years ago California provided a partial sales tax exemption on manufacturing equipment purchases.
But that ended when manufacturing employment dropped. Now a bipartisan group of lawmakers wants to bring back the exemption.
They say California needs to remain competitive with other states.
Democratic Assemblymember Kevin Mullin says the state is one of only a handful that doesn't provide at least a partial exemption.
"There is always a lot of talk about improving California's business climate, taxing manufacturing and research equipment stifles investment and hampers innovation, restoring this tax exemption is a concrete and in my opinion obvious step"
Similar legislation failed in the past because of cost concerns. But supporters say the state is in a better economic position now.