First the machinists' strike is settled and now this: on Oct 1, the state business tax for airplane makers and their parts suppliers will drop 12.5 percent.

The change is part of a slate of tax breaks and other assistance approved by lawmakers in 2003, as part of the state's successful effort to ensure that Boeing assembles its next generation of jetliners here in Washington state.

The state will provide its second carrot in July 2007 -- or sooner, if Boeing starts building the new planes here sooner -- when tax rates will drop further, for a total reduction of 40 percent.

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