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Fri, Jan 24, 2014

Washington State Explores Tax Incentives For Helicopter Companies

Small Businesses Want Boeing-Style Tax Breaks To Attract Jobs

A bill introduced in the Washington State House of Representatives would offer tax breaks often reserved for Boeing to smaller companies in an effort to attract more aerospace jobs to the state.

The bill, HB 2203 - 2013-14, would amend "the definition of commercial airplane for specific tax preferences to include other types of commercial aircraft to encourage the migration of good wage jobs in the state." It would provide a preferential business and occupation tax rate, business and occupation tax credit, and sales and use tax deferral for the manufacturing of rotorcraft, including the components used in the manufacturing process.

The News Tribune newspaper reports that when the legislature passed major incentives last November in an effort to keep Boeing from moving its 777X work out of the state, many other businesses of all sizes began to seek similar deals. Representative Ed Orcutt (R-Kalama) crafted a bill to include "commercial rotorcraft" in the definition of commercial airplanes.

Orcutt said during a hearing of the State's House Technology and Economic Development committee that there were many companies looking to relocate or expand in Washington State, and his bill would give the state "a fighting chance to bring in those jobs."

The bill had its first reading in committee January 13. If it makes it all the way through the legislature, it would become effective in July 2014, with some provisions phasing in over the next three years.

FMI: www.leg.wa.gov/house

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A bill introduced in the Washington State House of Representatives would offer tax breaks often reserved for Boeing to smaller companies in an effort to attract more aerospace jobs to the state.

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