13th District lawmakers want tax help for all businesses

OLYMPIA - State lawmakers worked quickly over the weekend to pass aerospace tax incentives to ensure Boeing will build its new 777X aircraft in Washington. While pleased with the deal, several legislators pushed for tax incentives for all businesses and industries in the state.

Sen. Janéa Holmquist Newbry, R-Moses Lake, questioned the wisdom of the Legislature providing incentives for Boeing when other employers do not receive similar advantages.

"Boeing is vital to our state's economy," she said. "The thousands of jobs produced by the 777X program with have a positive economic ripple effect throughout our state. The Legislature, however, is being asked to provide special incentives for Boeing. My response is this: If theses policies are good for Boeing, then they should be good for all of our employers. Unfortunately, expanding these incentives to help other, smaller businesses survive and thrive is not even on the table right now."

Holmquist Newbry, the chair of the Senate Commerce and Labor Committee, said by offering a special deal to Boeing, the state may put itself in a position of "picking winners and losers" among its employers. Holmquist Newbry offered an amendment during the special session that would extend special permitting timelines and another that would reduce state business-tax rates to all employers. If Boeing decided to build the 777X in Washington, still pending the approval of an agreement the company negotiated with its machinists' union, the permitting process will be streamlined.

"I think simplifying the permitting process is a great idea but if Boeing can get a four-week permitting timeline, why shouldn't all employers have hope of receiving the same advantage," Holmquist Newbry said.

Sen. Michael Baumgartner, R-Spokane, also pushed for tax incentives for all businesses adding the Boeing incentives are start to create a better environment for all businesses.

"We should be setting policies that foster a business climate that encourages all businesses to grow and create jobs," he said. "That's why this is a good first step, and I'm looking forward to continuing down this path in the coming 2014 session."

Rep. Matt Manweller, R-Ellensburg, said he supported the aerospace measures but reminded lawmakers regulatory relief is needed for all businesses.

"Please don't let this be the end of it," he said. "Let this be the beginning of it. Don't let today's (Saturday) be a final step to fixing Washington's economic environment."

Sen. Linda Evans Parlette, R-Wenatchee and chair of the Senate majority caucus, said she was willing to return to the Capitol for the brief special session because aerospace needs to remain a key part of the state's economy.

"Aerospace is a source of good, family-wage jobs, and I'd much rather have those jobs in our state than see them go somewhere like South Carolina," she said. "There is much more Olympia can and should do to address the needs of all Washington employers."

Should Boeing decide against locating its 777X project in Washington, the tax incentives passed would not take effect, Parlette added.

Gov. Jay Inslee gave final approval Monday to the Boeing tax benefits, estimated to reach about $9 billion through 2040. Along with the tax incentives, lawmakers also approved millions of dollars for aerospace workers training programs.

The state will await a contract vote Wednesday by the machinists' union.