SEATTLE - A spokesman for the California Governor's Office of Business and Economic Development says our report that California is discussing $7.5 billion in incentives to compete with the $8.7 billion offered by Washington State is very premature. And that the office known as GO-Biz is only beginning to work on California's proposal to land Boeing's 777X. Brook Taylor says he could not give a figure. And we may never know the full extent of incentives the state comes up with, as not all incentives would be subject to public disclosure.
Boeing says it sent out RFP's - requests for proposals - late Friday. A reliable industry source says the number of sites Boeing is studying is 15. It is widely believed that Long Beach, California is one of the locations in contention. Long beach is where Boeing is expected to end assembly of C-17 cargo jets for the U.S. Air Force and other customers in late 2015.
Washington's incentive plan is based largely on breaks from the state's B&O, or Business and Occupations tax.
Washington is barred by the state constitution from offering incentives directly to a specific company, but can provide incentives for a wider industry. Washington's package is for commercial airplane production and would give a break to all companies building commercial jets and jet parts including Boeing and its suppliers. It would even extends to company's making parts and tooling for Boeing competitor Airbus.
But the extension of the tax incentives for aerospace, first offered in 2003 to land the 787 Dreamliner, would now extend to 2040, but only if Boeing builds the 777X and its new composite wing within the state.
Our sources have not backed down from their contention that California, along with incentives from local government will need to be competitive with Washington. But during a visit to Long Beach on November 18th and 19th, city officials says it's also open to landing a large part of the 777X, even if it does not win aircraft assembly.