Thursday, December 12, 2013
Wall Street Journal, Boeing Holds Bake-Off for Biggest Tax Breaks: Aerospace Firm Plays States Off Each Other in Hunt for Tax Incentives; Washington Offers $8.7 Billion:
Boeing is running the priciest corporate beauty contest in the U.S., as state governments across the country try to outdo a record incentive package from Washington state to lure work that would build one of the aerospace company's coming jetliners.
The prize is expected to include thousands of jobs for workers designing and manufacturing the planned 777X, a 350- to 400-seat jet slated to enter service in 2020. Boeing requested proposals from more than a dozen states, with the bids due by Tuesday, according to officials in several states.
Chicago-based Boeing is seeking to build as much as 4.2 million square feet of new facilities at a cost that could top $10 billion, said a person familiar with the details. The competition is drawing fresh attention to companies' efforts to play localities against each other in the search for tax breaks and other incentives. ...
Washington's legislature last month approved sweeteners valued at $8.7 billion over 16 years—which experts say is the largest corporate-incentive package in U.S. history—in an effort to keep the jobs in what has been Boeing's primary manufacturing base for commercial jets. But Boeing then began looking elsewhere after its largest union rejected an eight-year contract deal that would have made significant changes to employees' wage structure and retirement and health-care benefits.