Aerospace tax incentives could help lure startup to Seattle

By: Mary Strow
12:00 am
September 9, 2016

The Puget Sound Business Journal reported earlier this week on some new business that may be coming Washington state's way:

Spike Aerospace, a Boston startup developing an ambitious new supersonic business jet, is talking with Washington state officials and aerospace suppliers about possibly locating its new manufacturing plant in Seattle.

The company's CEO, Vik Kachoria, told the Journal our region's built-in aerospace infrastructure is a huge pull:

"Obviously, we would be drawing from the supply chain in the area to provide engineering services and manufacturing. We know there is a lot of aerospace engineering talent, service and suppliers in the area," he said. "That is one of the key reasons Washington state is at the top of our list of locations."

Washington's aerospace tax incentives also give Seattle a leg up on the competition:

California also has a skilled workforce, he said, but it's expensive to build a facility there. Washington state also has generous tax credits available for aerospace manufacturers, which can be an attractive incentive, particularly for young companies like Spike.

"Seattle's costs remain reasonable," Kachoria said.

At a time when some in the state Legislature want to revise aerospace tax incentives, it's important to acknowledge the role they play in retaining and attracting jobs.

You can read our 2014 report on aerospace incentives here.

 

Categories: Categories , Economy , Tax Policy.
Tags: aerospace , business climate , tax incentives