OLYMPIA – The state House of Representatives on Thursday overwhelmingly approved a package of tax breaks for companies that design components and tools used in the aerospace industry.
The proposed law aims to provide these firms with the same tax credits and incentives granted to Boeing in December 2003. That deal covered manufacturers but not subcontractors that do the engineering and design of gear used in assembling aircraft.
“This is absolutely great for the big aerospace picture for the state of Washington,” said John Monroe, director of aerospace programs for the Snohomish County Economic Development Council.
This legislation benefits existing firms excluded from the 2003 action, and should help lure aerospace businesses to relocate here, he said.
The council has worked hard in recent months to lure Boeing subcontractors to the area. A couple have announced plans to build or expand Everett facilities, but most have chosen to produce parts at existing facilities.
The tax breaks are designed to offer an increased incentive for them to change their minds.
Legislators were told the credits will cost the state $2.9 million this fiscal year and nearly $7.5 million in the next biennium.
HB 2466 passed on an 88-10 vote. It now goes to the Senate for expected approval. Gov. Chris Gregoire requested the bill.
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