NORTH CHARLESTON, S.C. — Boeing has released information about the tax breaks it is expecting to get as part of the deal to put its $750 million airplane assembly plant in South Carolina, a newspaper reported Saturday.
No dollar amounts were disclosed, but Boeing said Friday it would pay Charleston County 4 percent on its real and personal property for 30 years, the same rate as for an owner-occupied home, according to The Post and Courier of Charleston.
Industrial taxpayers are typically assessed at 10.5 percent, but a spokeswoman for the manufacturer said the deal wasn’t uncommon.
“These terms and conditions are commonly seen on significant development projects,” said Candy Eslinger, spokeswoman for Boeing Charleston.
The amount will be fixed under a so-called fee-in-lieu of tax arrangement, a common motivation for businesses expanding to South Carolina. Boeing also said it would be eligible for tax credits equal to half of its total fee-in-lieu payments. That money would be rebated to the company during the first 15 years to pay for site improvements at its Charleston International Airport campus.
Boeing announced in October it would open a second assembly line for its new 787 jet in South Carolina, not in Everett, where it has built planes for generations. The company says it expects to create 3,800 jobs in seven years at the assembly plant, the largest single industrial investment in state history.
Boeing received an incentive package from South Carolina, including up to $170 million in low-interest loans for construction, plus sales tax exemptions for computers, material and fuel used in test flights. It also allows Boeing to pay very little corporate income tax for 10 years, by tying those taxes to in-state aircraft sales.
County Council members are set to vote on the tax breaks Tuesday.
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