TAX CREDITS
High Technology Business & Occupation (B&O) Tax Credit: Target industries such as advanced computing, advanced materials, biotechnology, electronic device technology, and environmental technology are eligible to receive an annual credit of up to $2 million for high technology businesses that perform R&D in specific high technology categories.
Reduced B&O Tax Rate for Manufacturers of Solar Energy System and Components of Solar Energy Systems: Provides manufacturers, wholesale manufacturers, and processors of solar energy systems and specified components of solar energy systems using photovoltaic modules with a reduced .275% Business & Occupation tax rate.
TRAINING PROGRAMS
Washington Customized Employment Training Program: The state provides for a revolving loan fund that provides up front training costs and provides a 50% B&O Tax credit to businesses relocating or expanding in the state.
SPECIAL ZONING
Rural County/CEZ Business and Occupation (B&O) Tax Credit: Projects locating in rural counties and community empowerment zones are eligible to receive certain Business and Occupation Tax credits. These tax credits provides manufacturing, R&D, or computer service firms up to $4,000 (if wages exceed $40,000) to be used against the business and occupation tax for each new employment position created and filled by specific industries, for up to five years.
TAX EXEMPTIONS AND DEFERRALS
Sales and Use Tax Exemptions: Exempts sales and use tax on machinery and equipment used directly in data centers, manufacturing, research operations, in generating electricity using fuel cells, wind, solar or landfill gas energy, and for the labor and services necessary to install such equipment.
Warehouse Tax Incentive: Wholesalers, retail distribution centers, third-party warehousers; 200,000 sq ft or greater or grain elevator with at least 1 million bushels storage capacity are exempt 100% of state sales tax associated with construction of qualifying structures.
Sales & Use Tax Deferral: Manufacturers, R&D (excluding light and power businesses) that locate in qualifying rural counties or distressed areas can waive sales and use tax on machinery and equipment; cost of expansion or modernization of existing facility if floor space or production capacity is increased; construction costs for qualified leased building. Advanced computing, advanced materials, biotechnology, electronic device technology, environmental technology industries can defer or waive sales and use tax associated with new R&D or pilot scale manufacturing operations, or expanding, renovating or equipping an existing facility to current operation.
