BILL REQ. #:  H-4600.1 

Read first time 01/25/10.   Referred to Committee on Finance.

     AN ACT Relating to eliminating the availability of aerospace tax incentives for airplane manufacturers transferring substantial manufacturing operations to other states; and adding a new section to chapter 82.32 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   A new section is added to chapter 82.32 RCW to read as follows:
     (1) A person manufacturing commercial airplanes in this state may not claim any aerospace tax incentive if more than fifty percent of the final assembly of any commercial airplane family manufactured by the person occurs outside the state of Washington.
     (2) The definitions in this subsection apply to this section.
     (a) "Aerospace tax incentive" means a tax exemption, deduction, credit, or preferential tax rate in RCW 82.04.260(11), 82.04.4463, 82.04.4461, 82.08.975, 82.08.980, 82.12.975, and 82.12.980.
     (b) "Final assembly" means the activity of assembling an airplane from components parts necessary for its mechanical operation such that the finished commercial airplane is ready to deliver to the ultimate consumer.
     (3) This section applies to a person on the first day of the first reporting period occurring after the condition in subsection (1) of this section is met.