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Ericksen joins
bipartisan group of legislators to fight for Alcoa Intalco Works
employees
Rep. Doug Ericksen,
R-Ferndale, testified alongside a broad coalition of legislators, both
Democrat and Republican, to convince their colleagues on the House
Finance Committee to provide temporary tax relief for aluminum smelters.
House Bill 2339, co-sponsored by Ericksen, would 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.
“It’s important to stress
that aluminum smelters are not looking for a permanent tax break,” said
Ericksen. “Companies like Alcoa Intalco Works simply need help getting
through this difficult time.”
Ericksen said the industry
has never recovered since the 2001 energy crisis, and the spiking
wholesale power prices, which resulted in most of the state's smelters
shutting down. In 2002, taxable income for the industry was down to $700
million and only 2,200 persons were employed. This was a stark contrast
from 1998 when the industry employed over 5,300 people and had taxable
income of $2.4 billion.
“The Legislature needs to
recognize all industries in our state need the same level of commitment
that the aerospace industry has enjoyed,” said Ericksen. “Last session
we made great strides by building model legislation to keep Boeing in
Washington. Now we must apply the same model to keep the aluminum
industry in our state.”
Ericksen stressed that
short-term tax incentives are only one piece of the puzzle. Other
changes needed include locking in an electricity rate reduction from the
BPA, removing burdensome regulations which have hindered all our state’s
job providers, and finally, securing a long-term energy source at a
reasonable and reliable price.
“Adopting HB 2339 would
show Alcoa that Washington wants their company and their jobs to stay in
Washington,” said Ericksen. “This isn’t a stand-alone bill and it’s not
going to solve all of our problems. But it will help buy us some time to
find a long-term source of lower cost electricity.”
The Senate will be
considering similar legislation sponsored by Sen. Dale Brandland, R-
Bellingham, Wed., Jan. 28.
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For more information, contact:
John
Handy, Assistant Director: (360) 786-5758
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