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Critical jobs legislation
for Central Washington passes House
Reps. Mike Armstrong and
Cary Condotta of the 12th Legislative District are happy to report that
tax relief legislation designed to bolster the struggling aluminum
industry and protect family-wage jobs in local communities passed the
House today 92-5.
“This important bill would provide aluminum smelters with the tax relief
necessary to remain viable and continue providing 400 of our own
citizens with good jobs,” said Armstrong. “This legislation would apply
to all aluminum smelters in Washington, including one of our area’s
largest employers, Alcoa.”
“Since 1998 we’ve lost half the aluminum smelter jobs in our state,”
Condotta said. “This bill would give the industry the boost it needs to
get back on its feet and save jobs. That would have a direct, positive
impact on the families in our community.”
House Bill 2339 would
temporarily reduce the business and occupation tax rate while providing
some sales and use tax and natural gas tax exemptions for aluminum
companies.
These incentives would end Dec. 31, 2006, after Bonneville Power
Administration energy rates are likely to be lowered. Aluminum plants
would also be exempt from the utility tax on purchases of nonfederal
power under the proposed bill.
For accountability,
smelters are required to report the number of jobs at the end of the
calendar year to determine the effectiveness of the legislation. If the
plants close, jobs and tax revenue are lost, and tax benefits are moot.
The lawmakers added that
the aluminum industry is very important to Central Washington, and has
suffered a steep decline as the Northwest's relatively low-cost energy
rates have increased in the past few years. This legislation will go a
long way towards preserving jobs, bringing closer to a re-start of the
Wenatchee plant and keeping others open by providing temporary tax
incentives until energy costs stabilize.
The legislation now goes
to the Senate for consideration.
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For more information, contact:
Bobbi Cussins, Public Information Officer: (360) 786-7252
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