The state’s effort to get a major aircraft manufacturer to build a factory is being scaled back by the state senate. But the top senate supporter of the plan thinks it’s a better idea and more likely to pass.
Senators will spend today working on Senator Charlie Shields’ tax credit plan to lure Bombardier Aerospace to vacant land at Kansas City International Airport. He has restructured his package to put the state at less risk for less time. Instead of foregoing up to 40-million dollars a year in tax income for 22 years, Missouri would forego 240-million dollars in tax income for eight years. Bombardier would get that much in tax credits in the next eight years. But the company would have much longer than eight years to pay back those credits.
Thousands of jobs could be riding on the package of tax credits for Bombardier. The company has said it will create thousands of jobs at the factory, with thousands of other jobs at supplies setting up shop nearby.
Bombardier is a Canadian company and Canada is trying to keep Bombardier from building its new factory south of the border.
Shield’s original 880-million dollar proposal ran into a cautious Senate that was not sure it wanted the state to forgo that much income for that much time. If the Senate buys Shields’ latest package, it will go to the House which has already approved one version of a tax credit package.