Gov. Rick Perry ceremonially signed House Bill 3727, which relates to the appraisal of aircraft temporarily under production in Texas. The governor was joined by Reps. Harvey Hilderbran and Trey Martinez Fischer, Sen. Carlos Uresti and others for the signing ceremony at Boeing's plant in San Antonio.
"HB 3727 makes it easier for companies like Boeing to have cost certainty when it comes to their tax bill, helping them commit to doing more business in this community and our state," Gov. Perry said. "This facility and the jobs it supports are part of Texas' economic success, and thanks to this bill, will continue to be part of San Antonio's robust economy."
HB 3727 requires aircraft temporarily located in Texas for manufacturing or assembly to be appraised at 10 percent of its market value. The bill also defines a temporary production aircraft as an aircraft with special airworthiness and flight permits and has a maximum takeoff weight of 145,000 pounds.
"Establishing clear rules for appraising property is a pro-business measure that will attract new aircraft manufacturers to our state and maintain the production contracts we already have," Rep. Hilderbran said. "These manufacturers provide critical jobs to Texas, and tax predictability will help ensure they keep their business here."
The Boeing Company is one of the largest military aircraft maintenance, repair and overhaul corporations in the world, with 2,500 Texans employed at its San Antonio facility. In March, Boeing San Antonio expanded its operations to include maintenance, repair and overhaul for commercial aircraft, potentially creating hundreds of additional jobs. In addition to its San Antonio facility, Boeing has eight other locations in the state that employ an additional 3,500 Texans.
"Our partnership with the State of Texas enables us to offer enhanced capabilities to our military and commercial customers, and supports Boeing's goals to grow and become more competitive," Boeing Defense, Space and Security President and CEO Dennis Muilenburg said. "From San Antonio to Richardson and Houston to El Paso, our commitment to Texas, the local communities and the working families of the state remains firm and endures."
"With its $200 million impact on San Antonio, Boeing has become a steady source of employment in my district and a crucial component of the local economy," Sen. Uresti said. "Our bill will make the partnership between San Antonio and Boeing even stronger."
"It's no surprise that when companies are looking to grow and innovate they choose San Antonio," Rep. Martinez Fischer said. "Our diverse workforce and business-friendly environment is why San Antonio has been able to be one of the most recession-proof cities in Texas. The Boeing Dreamliner is going to change the face of aviation, and I am proud to have led the effort to make it a reality."
For more information about Boeing, please visit http://www.boeing.com/.