Missouri Governor Uses LIHTCs to Entice Boeing
Boeing Co. has been courted by various U.S. states to land contracts to build part of the 777X, its first passenger jet of the 2020s, in one of the largest-ever economic development contests. Boeing solicited bids to move manufacturing operations from Washington after its machinists rejected 777X-related concessions to their union contract.
Now, the Chicago-based plane-maker must judge whether incentives outlined in proposals submitted recently, such as the $3.5 billion dangled by Missouri and St. Louis County, are worth the risk of shifting one of Boeing’s most profitable jets to a new locale with an unproven work force.
Tax credits for low-income housing and for historic preservation are Missouri’s two largest tax incentives. In putting together Missouri’s bid, Governor Jay Nixon persuaded the Missouri Housing Development Commission to delay action on the proposed tax credits for low-income housing as part of an agreement with some Republican senators who have long wanted to cut the program. Nixon's office requested the delay as part of negotiations between the governor and a group of five Missouri senators who agreed not to filibuster legislation to provide $1.7 billion worth of tax breaks over 10 years if Nixon agreed to push a tax credit reform bill through the Missouri General Assembly in its next legislative session.