– Democratic Gov. Jay Nixon on Tuesday signed legislation that expands tax incentives for aerospace production, part of his push to lure The Boeing Company’s new 777x production line.
Sitting in front of the James S. McDonnell Planetarium, Nixon signed the potentially $1.7 billion incentive package – the centerpiece of his response to Boeing’s request for proposals from more than a dozen states.
“This bipartisan legislation demonstrates once again that when it comes to opportunities to create thousands of family supporting jobs and grow our high-tech manufacturing industry, Missouri competes to win,” he said.
The legislation – which expands Missouri Works, Missouri Works Training, Missouri BUILD, and the Real Property Tax Increment Allocation Redevelopment Act by $150 million annually – moved with notable speed through the General Assembly, moving from introduction on the Senate floor to receiving a gubernatorial signature in eight days. The legislation faced only 20 dissenting votes in the House and eight dissenting votes in the Senate.
Nixon’s choice to sign the legislation at the McDonnell Planetarium was full of symbolism. The signing ceremony took place in a building named after James S. McDonnell, founder of the company which ultimately became McDonnell Douglas, which was purchased by Boeing in 1997. If there had been no McDonnell, there may have been no Boeing presence in St. Louis. The event itself took place in front of the Missouri-made Mercury space capsule, which was developed by McDonnell’s company in late 1950’s and early 1960’s at the height of the space race.
“Just as workers right here in St. Louis helped our nation reach for the stars by building the Mercury space capsules a half century ago, today we send clear message that Missouri is ready to open the next great chapter for high-tech aerospace manufacturing in our state,” Nixon said in his remarks.
The new Boeing 777x is the company’s latest attempt to compete with European-based plane manufacturer Airbus. The commercial airliner has an all new composite wing. Missouri officials have said the wing could be applied to military aircraft, which Boeing already produces in Missouri.
After Nixon submits his response to Boeing’s request for on Tuesday, the decision of where to land the 777x production line will lie solely with Boeing, which is expected to make its announcement sometime next month.
“The ball is now in Boeing’s court,” said Dan Mehan, president of the Missouri Chamber of Commerce, “but we can feel confident that we made a very competitive effort.”