SEATTLE - Sources with ties to California State Government tell KING5 News that the state is talking about a possible $7.5-billion tax break deal to land the 777X. That compares with the $8.7 billion already on the table from Washington to keep the 777X in Everett.

The State of California has been moving more aggressively to make itself more competitive in winning manufacturing jobs including GO-Biz, the Governor's Office of Business and Economic Development, that can begin negotiating deals to win manufacturing jobs.

The office of State Assemblymember Al Muratsuchi of Torrance, who leads the legislature's select committee on aerospace, says it has no knowledge of a tax proposal, and calls to Governor Jerry's Brown's office were not returned.

California, which has a large pioneering role in aviation since the early years of the 20th century was a powerhouse of aviation and aerospace work that dramatically accelerated during WWII and remained strong for many decades that followed. But factories that once built popular jetliners like the DC-10 and the MC-80 now stand empty.

Boeing merged with McDonnell Douglas in 1997 and the company is winding production of the C-17 cargo jet for the U.S. Air Force. Right now, C-17 production is slated to end in late 2015.

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