An official for Gov. Jerry Brown's Office of Business and Economic Development, or GO-Biz, confirmed Monday that California will submit a proposal to Boeing ahead of the company's Tuesday deadline for states to submit proposals to host production of the 777X.
GO-Biz declined to say what incentives, if any, are included in the proposal, though Brown has significant latitude to negotiate.
In a controversial restructuring of California's enterprise zone program of hiring tax credits this year, the Legislature afforded Brown about $30 million this budget year for tax credits negotiated on a case-by-case basis with the state.
The tax credits, administered under a newly-formed California Competes Tax Committee, can increase to $150 million next budget year and $200 million annually in subsequent years.
The legislation, Assembly Bill 93, also provided a sales tax exemption for manufacturing and biotech research companies. The value of the exemption is potentially significant, applicable to up to $200 million in purchases annually.
California is one of several states courting Boeing after the aerospace giant, mired in a labor dispute in Washington, began searching for another site to build the 777X. The company has billed the plane as its largest and most fuel efficient commercial aircraft.
The potential of luring Boeing is of significant interest in Long Beach, where the company produces its C-17 military plane. The company announced in September will stop producing the C-17 in 2015 and close its Long Beach facility.
Boeing employs about 20,000 people in California. The company said it employs more than 3,000 people on the C-17 production program in Long Beach, Georgia, Arizona and Missouri.
Brown's office referred questions to GO-Biz.
Boeing spokesman Doug Alder said the company expects to make a decision by early next year, but he declined to be more specific.
He declined to say how many states are competing, but he said the company has sent proposals "to more than a dozen locations."
Alder said a final decision could involve the selection of several sites, not just one.
Editor's note: This post was updated at 4:12 p.m. to include Alder's remarks.
PHOTO: Boeing Co. workers stand on platforms as they wave at their last C-17 Globemaster III cargo jet built for the U.S. Air Force as it flies away at the aerospace company's plant in Long Beach, Sept. 12, 2013. The Long Beach assembly line still has pending orders in the foreign market. Associated Press/Damian Dovarganes