Deadline looms for states competing for 777X

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by GLENN FARLEY / KING5 News Aviation Specialist

Bio | Email | Follow: @GlennFarley

KING5.com

Posted on December 4, 2013 at 8:06 PM

Updated Wednesday, Dec 4 at 8:20 PM

SEATTLE - In Missouri's state capitol in Jefferson City, lawmakers are expected to wrap up by Friday a $1.7 billion dollar tax incentive package to woo production of Boeing's 777X for St. Louis.

But out of the 15 states sources say Boeing is considering for all or part of 777X production, only Missouri and Washington have gone through an open legislative process to line up tax incentives.  Washington's incentive package was passed last month before Boeing threw bids open to the rest of the country, and Washington's $8.7 billion is considered tough to beat.

In Kansas, where Spirit Aerostructures builds the nose section for Boeing's 787 and the fuselage of the Renton assembled 737, a spokesman for the Department of Commerce said Wednesday that the agency's staff was working on completing the package for Boeing, which is due by Tuesday, December 10.

Kansas is relying on existing economic incentive programs related to job training and provisions that could allow expensing of new equipment over years.  Speculation is that the Kansas offer may only range into the tens of millions, rather than the billions from Washington and Missouri.

But we may never know just what many of the other offers are.  Of the eight known states confirmed or strongly expected to be on Boeing's list of 15 states (Washington, California, Kansas, Missouri, Alabama, South Carolina, Utah and Texas), most are dealing with the company quietly through their commerce departments.

One question is how big an incentive package large states like Texas or California can come up with?  California has said very little about state efforts to land the jet, and Texas has said virtually nothing.
 

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