Washington Gov. Jay Inslee has proposed extending the state tax credits to Boeing as an incentive to land the assembly of the 777X.
The Puget Sound Business Journal has this report.
Here is the Governor’s speech (17 pages) with the details.
Inslee predicted quick approval by the State Legislature, which returns to session in January.
The tax breaks were those granted to Boeing to land the assembly of what was then known as the 7E7, later renamed the 787.
There is one little issue, however. The 787 tax breaks were found to be illegal under World Trade Organization rules in the highly contentious international trade dispute between Airbus (the European Union) and Boeing (the US Trade Representative) over illegal subsidies.
The WTO found Airbus and Boeing each received illegal subsidies or tax breaks, and Boeing’s from Washington State were among those found to be illegal.
The US and EU each appealed the respective WTO rulings.
We asked the director of the Governor’s Office of Aerospace about this. His reply:
“The case is still being adjudicated and they are still in effect. Until something changes, the industry is still benefiting.”