http://seattletimes.nwsource.com/html/businesstechnology/2002228355_eads02.html

Saturday, April 02, 2005, 12:00 a.m. Pacific
Airbus parent could get U.S. tax breaks it assails
By Allison Linn
The Associated Press

The parent of European plane maker Airbus might accept tax breaks and
other government incentives in the United States that are similar to
those it criticized rival Boeing for receiving.

European Aeronautic Defense & Space (EADS), the majority shareholder
of Airbus, this week received proposals from 32 states offering 70
sites for a new U.S. plant.

EADS has said it will establish a U.S. plant to assemble
aerial-refueling tankers if the Air Force picks it instead of Boeing
for the multibillion-dollar contract.

The European company will take tax-break offers into account, EADS
spokesman Guy Hicks said.

"We wouldn't rule out any kind of financial incentive that would go to
any other company located in that state," Hicks said.

Other considerations will include living costs and access to seaports,
Hicks said.

Regardless of what happens with the tanker deal, Hicks said EADS is
committed to building a U.S. engineering center that would employ
about 150. He said EADS plans to winnow its list of potential sites to
a smaller group over coming weeks then go back to bidders for more
information before selecting a final site.

If EADS chooses a site in Washington state, it could qualify for some
of the same tax breaks awarded to Boeing when it agreed to assemble
its 787 jet there, said Michelle Zahrly, a spokeswoman for the state
Department of Community Trade and Economic Development.

Three of the state's Economic Development Councils are among the
bidders. Their proposed sites are Grant County International Airport
in Moses Lake, Paine Field in Everett and Spokane International
Airport.

In 2003, state lawmakers approved aerospace tax breaks worth $3.2
billion over 20 years on condition that Boeing assemble the 787 in
Washington.

The legislation leaves the door open for EADS to benefit from some of
the same largesse, Zahrly said, but it was too early to say how much.

Seattle Times staff contributed to this report.

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