Legislature expands tax incentives for aerospace industry

March 12, 2008 

OLYMPIA, WA – By a vote of 92-5, the House today passed legislation extending tax incentives to businesses that support the aerospace industry but that were left out of earlier similar legislation in 2003 and 2005.  Senate Bill 6828 provides for a reduced Business & Occupation tax rate to aerospace suppliers and vendors.  It will affect approximately 70 businesses across Washington state.

Rep. Marko Liias (D – Mukilteo) sponsored the companion House bill to SB 6828, and was a strong supporter of the measure throughout the 2008 legislative session.

“There is a compelling public interest in extending these tax incentives,” Liias said.  “About 209,000 jobs – 7.5% of total state employment – is within the aerospace industry.  These are jobs that support middle class families, who in turn help pay for our roads, schools, and infrastructure.  It has a ripple effect throughout the entire economy.”

Aerospace employment in Snohomish County is around 22%.  Liias represents the 21st District, which is located in Snohomish County. 

An example of a business that will now qualify for the reduced tax rate is aerospace maintenance.  Maintenance is a growing sector of the industry, and supporters of the legislation hope to keep the maintenance jobs here in Washington state, rather than having them outsourced.

Liias also believes that the legislature should foster creation of an aerospace “center of excellence” within Washington.

“We need to invest in what has been a bright spot in our economy, even during an economic downturn,” Liias said.  “It’s important to show the industry that we stand with them, and encourage them to stay here in Washington and provide family-wage jobs.”

15 of Washington’s 39 counties include significant amounts of the commercial aerospace industry, both in the western and eastern parts of the state. 

Today’s vote moves the measure to the governor’s desk for signature.  The Senate passed the bill last month on a 44-4 vote.