Clusters and incentives work together to build economy: More evidence of the effectiveness of Washington’s aerospace tax policy

Thanks to the Washington Research Council for calling attention to this Puget Sound Business Journal story on a Boston aerospace start-up considering locating manufacturing facilities in the Seattle area.  The PSBJ reports,

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 reasons aren’t surprising: the tremendous cluster of aerospace firms, engineering talent and suppliers. Also: the aerospace tax incentives.

Again from the PSBJ, 

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. 

We wrote earlier about the way tax policy can strengthen the existing industrial cluster. And we’ve specifically examined the positive returns from the state’s aerospace tax policy.

As the Research Council writes,

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.

We wish Spike and all startups looking to create jobs and expand opportunities in our state all the best. And we trust that Washington policymakers will continue to recognize the role smart tax policy plays in attracting new investment here.