Originally published October 2, 2013 at 2:26 PM | Page modified October 2, 2013 at 10:01 PM

Gov. Jay Inslee said Wednesday hell propose extending the states aerospace incentives through 2040 if Boeing assembles the 777X and fabricates its composite wings in Washington.

He also said he has formed an advisory group to address an environmental issue water-quality regulation thats got Boeing worried about rising costs at its Renton plant on Lake Washington.

Inslee spoke at a gathering of aerospace industry executives in Everett, where the main item on the agenda was competition from other states for aerospace business.

These states want what we have and they are going after it aggressively in ways we cant do, said Matt Yerbic, chief executive of Everett-based aircraft-maintenance and repair company Aviation Technical Services (ATS). Its all about jobs.

The states aerospace incentives, including substantial tax breaks, were introduced 10 years ago to persuade Boeing to assemble the 787 Dreamliner here. They are to expire in 2024.

All aerospace companies in the state benefit from the incentives, though Boeing has drawn by far the biggest share.

Inslee told the states annual Aerospace Summit that the tax incentives have been tremendously successful for Washingtons citizens.

Drawing on an analysis released Wednesday, he said $1.4 billion in industry tax savings in aerospace had yielded $3 billion in direct revenues for state coffers.

If Boeing decides to build the 777X and (fabricate) the wing in Washington, I believe those incentives should be extended to the anticipated life of this airplane, through 2040, Inslee said.

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Inslee wants aerospace tax breaks extended if Boeing builds 777X here