Page 5 - Aerotech News and Review 5-6-16

Boeing publicly discloses 2015 savings from state tax breaks
by Rachel La Corte
Associated Press
Boeing announced April 29 that it saved
$305 million through state tax breaks last year,
marking the first time the company has been
required by law to publicly disclose such in-
formation.
In a statement, the aerospace giant also said
it invested more than $13 billion in the state in Sikorsky conducts Combat Rescue Helicopter
2015 — citing tens of millions in community
contributions as well as tuition for employees
seeking continuing education. Company offi-
cials also noted the 777X composite wing cen-
ter in Everett that’s opening next month.
“Boeing’s investments demonstrate that
when a state creates competitive policies, its
citizens reap tremendous benefits from the ac-
tivity that follows,” said Bill McSherry, Boe-
ing’s vice president of government operations
and global corporate citizenship. “These incen-
tives work.”
The disclosure — to be filed with the state
Department of Revenue by May 2 — is a new
requirement under a tax-incentive transparency
law passed in 2013 that affects Boeing and hun-
dreds of other aerospace firms in the state.
Later that year, the Legislature approved a
suite of tax incentives aimed at Boeing and the
aerospace sector meant to ensure that the 777X
was produced in Everett. Most of the tax breaks
were first approved in 2003 and set to expire in
2024, but the new legislation extended them
until 2040.
State Sen. Reuven Carlyle, a Democrat from
Seattle who had pushed for transparency of the
tax exemptions, said April 29 that the informa-
tion is “incredibly valuable for the public.”
May 6, 2016
“The public can now open the books and de- Union District 751 in Seattle, cited the move of tax dollars,” Holden said in a written statement.
cide for themselves whether a tax break has a more than 1,000 high-skilled engineering jobs Numbers released earlier this week showed
return on investment,” he said. in the state to other regions as “a really bad
return on our state’s investment of tax dollars. the company had lower quarterly earnings com-
Carlyle said the $305 million in tax breaks com- pared to last year because of higher costs for
pared to the $13 billion spent by the company is a “We’ve given Boeing the largest corporate tax Boeing’s products and labor.
“compelling return on investment and solidifies our incentives in U.S. history, but without any job
state as the global center of innovation.” requirements, all we’ve done is create incentives Boeing is currently in the process of reducing
for Boeing to take away both our jobs and our its 160,000-person workforce by about 4,500 to
Jon Holden, the president of Machinists help keep its costs under control.
air vehicle preliminary design review
Lockheed Martin announced May 2 the successful execution of the schedule, but the preliminary design that we have achieved here has
Combat Rescue Helicopter Program Air Vehicle Preliminary Design well prepared us for detailed aircraft design and subsequent produc-
Review. tion. Our Training team is also executing extremely well and will be
conducting the PDR for the Training System three months earlier than
This important review signals that the CRH program is proceeding originally scheduled. This will further reduce our risk to achieving the
with detailed design activities for the HH-60W Air Vehicle and Logistics U.S. Air Force accelerated schedule for CRH and delivering this critical
system. In addition, the team will continue toward the CRH Training capability to the Air Force rescue crews faster. We are keenly aware
Systems Preliminary Design Review in August, three months ahead of that they are in combat every day, and that every day we can accelerate
schedule. getting the HH-60W into their hands reduces the risks that they face on
our nation’s behalf.”
Sikorsky, a Lockheed Martin Company, and the U.S. Air Force hosted
a five-day meeting in April to gather stakeholders and key collaborators The U.S. Air Force awarded Sikorsky the Combat Rescue Helicopter
from government and industry for an in-depth review that demonstrated contract in June 2014.
that the overall design meets the systems requirements setting the stage
for the next phase of the program. Review participants included mem- The $1.2 billion Engineering Manufacturing & Development contract
bers of the Office of the Secretary of Defense, both the USAF acquisi- includes development and integration of the next generation combat res-
tion team and representatives of the USAF operational combat rescue cue helicopter and mission systems, including delivery of four HH-60W
community, as well as the Sikorsky and Lockheed Martin industry team helicopters, as well as six aircrew and maintenance training systems.
and several other key suppliers. The training suite includes devices that span full motion simulators and
discrete aircraft systems used for training, such as hoist and landing gear.
“The successful Air Vehicle PDR confirms the program is on the right
track and marks a significant step for the CRH program,” said Tim Healy, The program of Record calls for 112 helicopters to replace the Air
Sikorsky, CRH Program Director. “Sikorsky and the USAF are well Force’s rapidly aging HH-60G Pave Hawk helicopters, which perform
aligned in this collaboration effort and this successful PDR moves us critical combat search and rescue and personnel recovery operations for
closer to bringing this vital aircraft to the warfighter. Specifically, I am all U.S. military services.
very proud of our team. They are not only operating to an accelerated
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