Washington aerospace industry benefits.

H.B. 2294 was approved by the Washington legislature on June 11, 2003. The bill, which includes various tax incentives aimed at the aerospace industry, is meant to improve the overall business climate of the state and improve the odds of convincing Boeing Co. to locate the final assembly plant for the proposed 7E7 airplane in Washington. Effective October 1, 2005, the business and occupational tax rate for manufacturers of airplanes or commercial airplane components would lower from 0.484% to 0.4235%, reducing the tax to .2904%. These manufacturers would also have the right to claim a credit of 1.5% of eligible preproduction development expenditures. Along with the other rate reduction and credits, computer equipment acquired between July 1, 1995 and the effective date would apply towards another B&O credit equal to 8.44% of the purchase price. This is an attempt to help fund digital design and development of commercial airplanes. Legislation is currently waiting on the signature of Governor Locke. (H.B. 2294, as approved by legislature June 11, 2003; Press Release, Washington Governor Gary Locke, June 11, 2003)

Posted on June 15, 2003