Comparing State Tax Incentives For Aerospace Manufacturing Cluster Growth

Gavin Roser

School Name

South Carolina Governor's School for Science and Mathematics

Grade Level

12th Grade

Presentation Topic

Consumer Science

Presentation Type

Mentored

Mentor

Mentor: Deborah Cameron, South Carolina Aerospace Initiative, New Carolina: South Carolina’s Council on Competitiveness, South Carolina Department of Commerce

Oral Presentation Award

2nd Place

Abstract

South Carolina has felt the ripple effects of The Boeing Company’s recently constructed Charleston plant in the form of new jobs, higher average income, and improved infrastructure. Boeing’s multi-million dollar investment in the state has increased the flow of suppliers into South Carolina, while also expanding the correlated support chain. This sequence of compounding growth is described in the University of South Carolina’s Economic Impact Study as the influx of aerospace-related companies attributed to Boeing. Building on the findings of the Economic Impact Study, legislative reform can maximize South Carolina’s cluster growth with readily available tax incentives and public financing. This study aims to evaluate the calculated quality of in-state tax incentives and perform a direct comparison of similar incentives existent in competitor aerospace industry states. In a joint effort of the South Carolina Aerospace Initiative and the South Carolina Department of Commerce, the comparison of competitor aerospace states revealed a deficiency of tax incentives in South Carolina and pinpointed the most common aerospace-specific tax incentives.

Start Date

4-11-2015 11:00 AM

End Date

4-11-2015 11:15 AM

COinS
 
Apr 11th, 11:00 AM Apr 11th, 11:15 AM

Comparing State Tax Incentives For Aerospace Manufacturing Cluster Growth

South Carolina has felt the ripple effects of The Boeing Company’s recently constructed Charleston plant in the form of new jobs, higher average income, and improved infrastructure. Boeing’s multi-million dollar investment in the state has increased the flow of suppliers into South Carolina, while also expanding the correlated support chain. This sequence of compounding growth is described in the University of South Carolina’s Economic Impact Study as the influx of aerospace-related companies attributed to Boeing. Building on the findings of the Economic Impact Study, legislative reform can maximize South Carolina’s cluster growth with readily available tax incentives and public financing. This study aims to evaluate the calculated quality of in-state tax incentives and perform a direct comparison of similar incentives existent in competitor aerospace industry states. In a joint effort of the South Carolina Aerospace Initiative and the South Carolina Department of Commerce, the comparison of competitor aerospace states revealed a deficiency of tax incentives in South Carolina and pinpointed the most common aerospace-specific tax incentives.