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The Oklahoma Aerospace Engineering Tax Credit was one of the key elementscontributing to the business case analysis that resulted in our decision to relocate

550 positions to Oklahoma City. This program is unique in the country, givingOklahoma a distinct competitive advantage. Restoration of this tax credit will

positively inuence ongoing business case analyses to fnd best value approaches toaddress our customers requirements.

Steve Hendrickson, THE BOEING COMPANY

OKLAHOMAS AEROSPACE INDUSTR

TheAerospaceIndustryisoneofOklahomastop 3economicenginesAerospacecompaniesemploy74,000directjobsinOklahoma,yieldinganannualpayrollofjustundebillionTheindustrycreatesanadditional70,000indirectjobs,foratotalof144,000 aerospace-related jobsinOklahomaForeachnewengineeringjobcreatedintheaerospaceindustry,anadditional2jobsareprojectedtobecreatedin

OklahomaAerospacecompaniespayanaveragesalaryinOklahomaof$55,000,comparedtotheaveragesalaryforallindustriesbothprivateandpublicof$30,000Aerospacehasaneconomicoutputof$12.4 billion,10percentofOklahoma'seconomyAerospacecompaniesusethesecreditsonlyAFTERtheyhavehirednewengineers,provingitisatruemeasureofnewjobscreatedCompaniesutilizedtheAerospaceEngineeringtaxcredittohire348 engineersin2009,theonlyyewasfullyappliedbeforethemoratorium;thescalimpacttothestateoftheengineercreditwas$3.5million,butthedirectimpacttoOklahomaseconomyresultingfromthehiringoftheengineerswas

$270 millionThehiringof348engineersisestimatedtocreateatotalincreaseinpayrollof$50.7 millionAerospacecompaniesrequireapipelineofskilledworkers,especiallyengineers,tocontinuethatleveleconomicoutput

Aerospacecompaniesexpecttohaveanshortageoleast600engineersby2014accordingtotheGovernorWorkforceCouncil Aerospacecompaniesonlyhaveabout110,000U.Sengineerstodrawfromforjobs,comparedto600,000Chinaand350,000inIndia Aerospacehasthelargesttradesurplusofany manufacturingindustryforthelast5years,averaging

$57Bperyear

"Qualifed engineers are amajor component of the Spiritworkforce. We have

participated in the aerospacetax credit program since its

inception, hiring engineersfrom the University ofOklahoma and Oklahoma StateUniversity. It has been a key tobuilding our workforce in Tulsaand McAlester. The aerospacetax credit stands alone as agreat recruitment tool for Oklahoma."

Deborah Gann, SPIRIT AEROSYSTEMS, IN

Please Support Senate Bill 3 (Mazzei), which would reinstate the Aerospace Engineer Workforce anRecruitment Incentives. Heres why:

We currently have a pressing need forat least 50 engineers who will designnext generation programs that willdrive manufacturing activity for thenext decade. Several hundred more

jobs will be needed to support thesedesign programs production phasesin Oklahoma. The aerospace tax credit

is a critical component of NORDAMsbusiness case to place these jobs in theTulsa-area and vital to our States

competiveness now and in the future.

T. Hastings Siegfried, NORDAM

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Legislature Passes Incentives to lure Aerospace Engineers HB3239(McNiel,Corn)grantedataxcreditequalto50percentofthetuitionreimburse

qualiedemployeesintheaerospacesectorfortherstthroughfourthyearsofemploym Thecreditcouldbeclaimedonlyiftheemployeehasbeenawardedanundergraduateor

graduatedegreewithinoneyearofemploymentwithaqualiedemployer

Thelawalsograntsataxcreditforcompensationpaidtoaqualiedemployee Thelawprovidesamaximum$5,000taxcreditforuptoveyearsforqualiedemployeeOklahoma Reaps Benets for Aerospace Industry WhileKansaswaslayingoff16,000aerospaceworkers,Oklahomahadnetjobgrowthini

aerospaceindustry TinkerAirForceBaseisinthemidstofhiring1,200workersandSpiritAeroSystemshas

hired400sinceNovember Thereisnoquestionthattheincentivesprovidedtoengineershiredbyaerospacecompan

andthecompanieshiringthemplayedacriticalroleintheiremployment TinkerAFB,theworldslargestmilitaryaircraftrepairfacilityandOklahomaslargest

single-siteemployerwith28,000employees,benetedthemostfromtheaerospacetax

credits,hiringapproximately60engineers SpiritAeroSystemshasbeentheprimarybeneciaryintheprivatesector,hiringnearly3

engineers Thesejobshelpensuretheviabilityandgrowthofaneconomicenginethathashelped

Oklahomaweathertheeconomicstormbetterthanmoststatesandmuchbetterthanthestatedidinthe1980swhenOklahomaseconomywaslargelydependentmostlyontheoiandgassector

Moratorium placed on Aerospace Engineer Workforce and Recruitment Incenti SB1267putinplaceamoratoriumon30separatetaxcredits,whichwasapartofthe$6.billionbudgetagreementreachedinlateMaybetweenGovernorHenryandlegislativeleaders.

Inthenalhoursofsession,taxcreditsforwindpower,historicrenovationprojects,coalandbusinessinvestmentswerestillsubjecttothetwo-yearmoratorium,butwereabletodeferredandbanked

TheAerospaceEngineerWorkforceandRecruitmentInitiativeswerenotsparedandwernotgiventhesamedefermentopportunities

Seeking Reinstatement of the Aerospace Engineer Workforce and RecruitmentInitiatives Thisvitaleconomicdevelopmenttoolhasledseveralaerospacecompaniestohiremore

engineersandconsiderOklahomaforthelocationofadditionaloperationsfortheir companies

ThemoratoriumhassentaterriblemessagetotheaerospaceindustrythatwedonotwanthemtogroworexpandinOklahoma. Forexample,Boeinghasseveralactivestudiesevaluatinghigh-costlocationstoseeitmakbusinesssensetorelocatethemandthemoratoriumofthistaxcreditishavinganegativeimpactonthebusinesscaseanalysis

TheAerospacetaxcreditsmeetallofthecriteriaoutlinedintherecently-releasedattornegeneralopiniontoensureconstitutionality

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