Tuesday, January 30, 2018

King on ’97 BIW tax credit: ‘No regrets’ Maine senator tours shipyard with Rhode Island colleague

To  Peaceworks  
 
King on ’97 BIW tax credit: ‘No regrets’
Maine senator tours shipyard with Rhode Island colleague
 
BY NATHAN STROUT
Times Record Staff
 
 
Sen. Angus King, I-Maine, said that a $60 million tax credit for Bath Iron Works that he signed as governor in 1997 “was one of the best things I ever did” during a press conference at the shipyard on Friday.
 
“I can tell you to a certainty, look you straight in the eye, if we hadn’t done that Bath Iron Works would not be here,” said King. “Because that money was used to create the Land Level (Transfer) Facility and BIW would be unable to compete without that facility.”
 
The tax credit was spread over 20 years and required $200 million in investments in the shipyard facilities by the company. A recent report shows that the company has invested $480 million in the shipyard since then, much of which was spent to build the Land Level Transfer Facility, used to assemble ships and place them on a floating dry dock.
 
That $60 million tax credit expires this year, but a bill submitted by Rep. Jennifer DeChant, D-Bath, would effectively renew it for 20 years, requiring a $100 million investment instead. King did not take a position on that bill.
 
“I can’t speak to the current proposal. I’m not involved in it. It’s a state issue,” said King. “But I think people do need to take a hard look at what’s necessary to be competitive, to make our businesses competitive in this modern world. Believe me, shipbuilding is very competitive.
 
“Back in ’97, I knew what the right thing to do was,” he added, “and I have no regrets.”
 
There will be a public hearing on DeChant’s bill at 1 p.m. Tuesday at the State House.
 
King’s comments came during a visit to BIW with Sen. Jack Reed, D-R.I., the ranking member of the Senate Armed Services Committee, on which King also serves. The two senators met with front-line supervisors and toured the future USS Michael Monsoor.
 
“We’re here at Bath Iron Works today to spend some time on the DDG 1000 and also spend time with the men and women who are in the kind of middle management here, who work directly with those people who are on the ship,” said King. “The idea is to talk about what we’re doing in Washington, what they’re doing here.”
 
“I’m here because Sen. King asked me to come up and personally look at the very important work that’s being done at Bath Iron Works by General Dynamics, particularly DDG 1000,” said Reed. “It’s a critical ship necessary for the safety and security of the United States.”

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