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Politics Northwest

The Seattle Times political team explores national, state and local politics.

November 7, 2013 at 1:19 PM

House Finance chairman: Boeing tax-break measure has ‘rock-solid’ safeguards

House Finance Chairman Reuven Carlyle say there’s “rock-solid” language in legislation extending tax breaks for Boeing, and other aerospace companies, to prevent the company from moving the 777X out of Washington in the future.

“They are committing in black and white, not only to the 777X but its descendant planes,” Carlyle said Thursday, the first day of a special session to deal with Boeing. “If there is an assessment and view that assembly has moved or an element of that has moved, then the preferential rates for the 777X goes away. It’s pretty cut and dry.”

A legislative report for House Bill 2089 states the measure “is contingent upon the Department of Revenue making a determination that a final decision to locate a significant commercial airplane manufacturing program in the state of Washington has occurred. If a decision to locate a significant commercial airplane manufacturing program is not made by June 30, 2017, the bill is null and void.”

It goes on to say “a significant commercial airplane manufacturing program is the commencement of manufacturing of a new model of a commercial airplane or a new version of an existing model and the manufacturing of the fuselage and wings of the new model or new version. The ongoing availability of the preferential B&O tax rate for the production of a new or remodeled commercial airplane is contingent upon maintaining all final assembly of the aircraft, wing assembly, and wing fabrication within the state.”

Carlyle said, that given the safeguards, he feels it’s a good move for the state.

“I don’t feel like we’re being blackmailed at all. There’s no question that extending the (tax breaks) … in exchange for an absolute rock solid, black and white written commitment for the 777X and its descendant planes is a responsible marriage and partnership,” he said.

Comments | More in Governor, Politics Northwest, State Legislature | Topics: Boeing, reuven carlyle, special session


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