Senate Dangles Tax Lure for KCI Assembly Plant Project
Missouri senators advanced a mega project tax credit plan today allowing the state to work to bring an airplane assembly plant to the Kansas City Region. The measure, House Bill 2393, handled by Senate Majority Floor Leader Charlie Shields, R-St. Joseph, could trigger a Montreal-based company to invest $400 million into building a passenger jet assembly plant at the Kansas City International Airport.
“We want Missouri to be open for business that brings great paying jobs to our residents,” Shields said in a statement. “This is a phenomenal deal for taxpayers, because we have safeguards in place to make sure the company creates jobs before any tax dollars are issued through tax credits.”
The company, Bombardier, has confirmed it is considering a site at Kansas City International Airport to invest $400 million to build a passenger jet assembly plant that, when at full capacity, would employ approximately 2,100 workers paying an average wage of $63,000 annually. These jobs could spur thousands of more indirect jobs in the region and state.
The company, which also owns Learjet, would invest a total of $3.2 Billion in research, development and structure for the project, but is seeking assistance from Kansas City and the state.
The bill clarifies what the Missouri Department of Economic Development can offer in state assistance through existing programs including the Enhanced Enterprise Zone and Quality Jobs Act programs, capping tax credit investments to $240 million dollars over an 8 year period. The state programs would be coupled with local resources in Kansas City to better gain this aerospace economic development and investment in Missouri.
The assembly plant would produce a new, fuel efficient, less costly, 110-plus seat commercial aircraft. It will be the first new commercial aircraft assembly line in America since 1968.
The bill now returns to the House for final approval to become law. To track the legislation visit www.senate.mo.gov and do a “key word” search for HB2393.