The Amarillo City Council gave unanimous approval this week to a comprehensive incentive package aimed at supporting a major expansion by International Aerospace Coatings, Inc. (IAC), a longtime tenant of Rick Husband Amarillo International Airport.
The project represents a $27 million private investment in new infrastructure at the airport and is expected to create approximately 65 new full-time jobs over the next several years. The expansion will include construction of a wide-body aircraft paint hangar—a critical upgrade that will allow IAC to service larger commercial and military aircraft—as well as additional storage space.
IAC specializes in aircraft painting, interior refurbishing, and graphic applications. The company has maintained a presence at the Amarillo airport for more than 30 years, making it one of the airport’s most established aviation businesses.
Key Components of the Deal
The approved incentives include three major components:
50-Year Lease Agreement
The city approved a 50-year lease with IAC, granting the company rights to expand its leased footprint at the airport. Under the terms of the lease:
Annual rent will start at $42,893
The rent will increase to $47,431 starting in July 2027
The lease includes provisions for additional square footage to accommodate new facilities
Tax Abatement Agreement
The City of Amarillo granted a property tax abatement for the new construction:
80% abatement in the first year
The abatement decreases by 10% each year over an eight-year term
The abatement applies only to new improvements, not existing property
This structure encourages immediate investment while phasing in full tax contributions over time.
Job Creation Incentives
The Amarillo Economic Development Corporation (AEDC) has authorized a location incentive agreement:
Up to $700,000 in performance-based incentives
Payments are tied to the creation of up to 70 jobs over a five-year period
The payout is structured at $10,000 per new position, issued as the jobs are created
Local Impact and Economic Strategy
The expansion is expected to significantly boost Amarillo’s aviation and manufacturing economy, bringing new skilled-labor jobs in areas such as aircraft painting, maintenance, and logistics. With the ability to service wide-body aircraft, IAC will be able to take on larger contracts and attract new business opportunities that were previously out of reach due to space and equipment limitations.
IAC currently employs 171 workers in Amarillo, meaning the proposed 65 additional positions represent a nearly 40% increase in local staffing.
According to city documents, the average wage for the new positions is expected to be competitive and contribute to the area's long-term economic development goals.
Strategic Location and Infrastructure
Rick Husband Amarillo International Airport already supports a growing cluster of aerospace-related businesses and military operations. The airport's access to air cargo infrastructure, large parcels of developable land, and proximity to key transportation routes make it a strategic location for industrial and aerospace development.
Officials at AEDC view this deal as part of a broader strategy to attract and retain high-value industries in Amarillo, positioning the city as a regional hub for aerospace maintenance and support services.
What’s Next
Construction on the new hangar and facilities is expected to begin later this year, pending permitting and final design approvals. Company representatives have not yet released a projected completion date, but officials said operations could begin as early as mid-to-late 2026.
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