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Legislation to save jobs for
Alcoa Intalco workers clears House
Legislation championed by
Rep. Doug Ericksen
to help breath life into the aluminum smelter
industry today cleared the House of Representatives. House Bill 2339
would provide temporary tax relief for aluminum smelters by reducing the
business and occupation tax rate and providing sales and use tax, and
natural gas tax exemptions for aluminum companies. The tax incentives
would end Dec. 31, 2006, after Bonneville Power Administration energy
rates are likely to be lowered.
“Aluminum smelters like Alcoa Intalco Works aren’t looking for a
permanent tax break,” said Ericksen, R-Ferndale. “They just need to get
through this difficult time. We’ve certainly helped other industries in
Washington; we can help save aluminum jobs too.”
Ericksen said the industry has never recovered since the 2001 energy
crisis and 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.
“Adopting HB 2339 would be an excellent sign to Alcoa that Washington
cares about the folks it employs and wants their company and their jobs
to stay in Washington,” said Ericksen.
He 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 the state’s
job providers, and finally, securing a long-term energy source at a
reasonable and reliable price.
“This bill isn’t going to solve all of our problems. But it will buy us
a little time to find a long-term source of lower cost electricity.”
HB 2339 will now be considered in the Senate.
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For more information, contact:
John
Handy, Assistant Director: (360) 786-5758
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