Depending on how big Boeing Co.’s potential 777X facility in north St. Louis County winds up being, the incentives Gov. Jay Nixon is proposing to land the plant could coast the state as much as $1.7 billion over the next 22 years.
But the project would generate up to $2.9 billion in tax revenue over the same period, according to a cost/benefit analysis released today by the Nixon administration.
A components plant with 2,000 jobs would cost an estimated $435.4 million in incentives through 2040 while creating $705.1 million in new tax dollars. A full assembly plant with 8,000 jobs would cost $1.74 billion in incentives and generate $2.9 billion in tax revenue.
The analysis urges lawmakers to pass $150 million a year in new tax credits to lure the much-sought-after Boeing assembly plant. The biggest costs would come in the first six years, while the plant gets up and running. A Senate committee is due to hold a hearing on the package later today.