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Legislature Adjourns: AFA Enjoys Great Success Despite Record $2.8 Billion State Deficit

The 2010 Legislative Session adjourned sine die on Tuesday, April 13th. Despite the record setting $2.8 billion deficit, the AFA and Washington's aerospace industry had great success. Our top priorities were supported by the Governor and a majority of our legislators. We are thrilled to share their support of our important state-wide industry and look forward to implementing the positive steps taken.

$1,750,000 appropriation to the Washington Aerospace Training and Research Center and $400,000 for the Spokane Aerospace Technology Center: This funding will allow the Center to open, begin training workers and create approximately 7,500 jobs in the next eighteen months. The Center will work directly with aerospace companies to meet immediate job needs. As the industry faces an aging workforce and constant technology changes, the Center will provide special and customized training including specific curriculum needs as outlined by industry. Funding for Spokane provides for a land swap with the military to move forward the creation of the important Aerospace Technology Center in Spokane. These facilities are huge for our industry and will provide great opportunities to promote and enhance the future of aerospace statewide.

Far 145 Tax Incentive Extended: The Legislature passed legislation supported by the AFA to extend the reduction of the B&O tax incentive for Part 145 Repair Stations to July 1, 2024. This action makes the tax incentive consistent with all other aerospace tax incentives and will greatly assist all of our FAR 145 Repair Stations and bring economic growth to Washington State.

Airplane Excise Tax: The AFA assisted in defeating an airplane specific excise tax that would have placed an unfair burden on our member aerospace companies.

Tax Incentives for Aerospace: The AFA worked with many members to ensure that all of the 2009 tax incentives for aerospace were maintained. These tax incentives are crucial to maintain and grow Washington's aerospace industry.

$2 million appropriation for Aviation Highschool: The AFA joined Aviation Highschool to secure a $2 million appropriation to get this exciting new highschool moving forward.

Unemployment Insurance: The AFA and Washington employers were successful in maintaining the 2009 changes to our State's unemployment insurance system.

Worker's Compensation: The AFA and Washington businesses were seeking changes to our workers' compensation system to make it more competitive with other states. With the pending budget constraints and short session timeline, these changes were not addressed. The Governor and Legislators have committed to working on these issues over the summer in preparation for the 2011 Legislative Session.

Washington's Aerospace Tax Incentives: Does your company qualify?

In late August the Department of Revenue reported that 222 of the 650 aerospace companies operating in Washington were taking advantage of one or more of these incentives:
  • Reduction in B&O Tax
  • B&O Tax Credit for property taxes paid for new and upgraded facilities
  • B&O Tax Credit for R&D expenditures
  • Sales tax exemption on computers and peripherals
Since this is the third year most of these incentives have been available there is some question as to why only 34% of eligible companies are taking them. John Monroe, retired Boeing Executive and AFA Board Member, believes the AFA must significantly step up its member awareness of the States incentive package in 2010. Contact Linda Lanham at lindal@afa-wa.com to discuss your companies' potential savings.

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lindal@afa-wa.com

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