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Programs in this category provide either a general or targeted tax reduction, through the use of tax credits or exemptions, to specific industries. For more detailed information on these tax incentives you can contact the Legislation and Policy Division of the Washington State Department of Revenue at 360-570-6128.
Distressed Area Business and Occupation Tax Credit
Provides a $2,000 credit for each new qualified employment position with annual wages and benefits of $40,000 or less; or a credit of $4,000 for each new employment position with wages and benefits of more than $40,000 annually. The business must be a manufacturing, research and development, or computer related service business (excluding light and power business) that locates or expands in a designated distressed county or other eligible area.
Manufacturing Sales & Use Tax Incentive
Sales tax or use tax does not apply to: Sales to a manufacturer or processor for hire of machinery and equipment used directly in a manufacturing operation or research and development operation. Sales to a person engaged in testing for a manufacturer or processor for hire of machinery and equipment used directly in a testing operation. Sales of or charges made for labor and services rendered in respect to installing, repairing, cleaning, altering, or improving the qualifying machinery and equipment. Charges for repair parts for qualifying machinery and equipment if the parts have a useful life of at least one year.
Sales and Use Tax Deferral for Manufacturers
The Rural County Sales/Use Tax Deferral Program grants a deferral of sales/use tax for manufacturing, and computer-related businesses, research and development laboratories, and commercial testing facilities (excluding light and power businesses) locating in rural counties. The sales and/or use taxes on qualified construction and equipment costs for such businesses located in these specific geographic areas are waived when all program requirements have been met and verified.