home home Find taxes & rates home Tax incentives home Incentive Programs: Deferrals, Exemptions, and Credits Incentive Programs: Deferrals, Exemptions, and Credits

New and existing manufacturers, research and development firms, and certain high technology companies can benefit from several tax incentives offered by the state of Washington.

These incentives are intended to encourage the creation and preservation of family-wage jobs, especially in areas with high unemployment.

Tax Incentives Overview fact sheet (pdf)

Synopsis of Tax Incentives (pdf)

Tax Incentive Public Disclosure Reports

Washington’s Aerospace Tax Incentives presentation – October 2010

      PDF (2.3 MB)
      PowerPoint (14.6 MB)

Incentives

General Manufacturing Industry

Expand Sales and Use Tax Exemption for Manufacturing Machinery & Equipment

Machinery and Equipment (M&E) Sales & Use Tax Exemption

Available To:
Manufacturers and processors for hire performing manufacturing and R&D. Testing operation for a manufacturer and processor for hire.

Qualifying Activity:
Purchase of qualifying machinery and equipment used directly in a manufacturing operation or research and development performed by a manufacturer, or testing operations performed for a manufacturer.

Reporting/Documentation Requirements:


Special Notices & Publications (pdf format)
Manufacturing Industry Tax Guide

Sales and Use Tax Exemption for Qualifying Manufacturing Machinery and Equipment Clarified

Manufacturer’s Sales/Use Tax Exemption

RCW
82.08.02565
82.12.02565

WAC
458-20-13601

Contact
For questions about the program, call Beth Mills at (360) 705-6642.


Rural County/Community Empowerment Zone (CEZ) Incentives

Purchases of Server Equipment and Power Infrastructure for use in Eligible Data Centers – Sales/Use Tax Exemption

Purchases of Server Equipment and Power Infrastructure for use in Eligible Data Centers – Sales/Use Tax Exemption

Available to:
The owner of an eligible data center with a combined square footage of at least 100,000 square feet and tenants of the owner of an eligible data center located in a rural county.

To qualify the data center must have a building permit to construct, renovate, or expand the data center issued between:

  • April 1, 2010 and June 30, 2011 or;
  • April 1, 2012 and June 30, 2015.

Qualifying Activity:
Sales/use tax exemption on:

  • purchases of eligible server equipment and labor and services to install server equipment in an eligible data center.
  • purchases of eligible power infrastructure, and labor and services to construct, install, repair, alter, or improve eligible power infrastructure.

Reporting/Documentation:

  • Submit Application for Sales Tax Exemption for Purchases by Data Centers prior to purchases of server equipment or power infrastructure.
  • The Department will issue a Certificate for Sales Tax Exemption for Purchases by Data Centers to qualifying businesses.
  • Annual Tax Incentive Report due by April 30th of the year following the year the applicant becomes eligible to claim the sales tax exemption. 
  • Electronic filing of all documents required.

Special Notices & Publications (pdf format)
Exemptions Extended for Certain Purchases by Eligible Data Centers

RCW
82.08.986
82.12.986
82.32.534

ETA
Currently being updated for 2012 legislative changes

Contact
For questions about the program, call Beth Mills at (360) 705-6642.

For questions about the application, call Annette Parbon at (360) 902-7139.

 

 

B&O Credit for New Employees in Manufacturing and Research & Development in Rural County

B&O Credit for New Employees in Manufacturing and Research & Development in Rural Counties

Available to:
Manufacturers, R&D laboratories, and commercial testing facilities located in rural counties or within a CEZ.

Qualifying Activity:
Creating new employment positions/increase instate employment by 15%.

Credit Amount

  • $2,000 credit/position with annual wages/benefits of $40,000 or less; or
  • $4,000 credit/position with wages/benefits of more than $40,000 annually.

Reporting/Documentation:

 

 


Special Notices & Publications (pdf format)

Rural County B&O Tax Credit for New Employees

RCW
82.62

WAC
WAC 458-20-240

Contact
For questions about the program, call Beth Mills at (360) 705-6642.

For questions about the application and report, call Taxpayer Account Administration at (360) 902-7175.

 

Sales & Use Tax Deferral/Waiver for Corporate Headquarters Locating in Community Empowerment Zone

Sales & Use Tax Deferral/Waiver for Corporate Headquarters Locating in Community Empowerment Zone

Available to:
Business with corporate headquarters locating in a CEZ.

Qualifying activity:

  • locate within a CEZ
  • invest at least $30 million in qualified buildings, tangible personal property, and fixtures, etc, including labor and planning
  • employ at least 300 employees, each who must earn at least the annual average wage for the state for that year
  • meet the definition of corporate headquarters as defined in RCW 82.82.010.

Reporting/Documentation Requirements:

  • Corporate Headquarters Application for Sales and Use Tax Deferral can be made at any time prior to completion of construction of a qualified building or buildings, but tax liability incurred prior to the department's receipt of an application may not be deferred.
  • All businesses must maintain a qualified activity at the site of the investment project for the year in which the investment project is certified operationally complete plus seven additional years.
  • Annual Survey must be filed by April 30th of the following year in which the project is certified and for the following seven years.
  • Electronic filing of all documents required.
  • Effective July 1, 2009
Applications may not be made after December 31, 2020.


Special Notices & Publications (pdf format)
Sales & Use Tax Deferral for Corporate Headquarters Located in Community Empowerment Zone

RCW
82.82

Contact
For questions about the program or the application, please call the Special Programs Division at (360) 534-1503.

High Unemployment County/CEZ

High Unemployment County Sales & Use Tax Deferral/Waiver for Manufacturing Facilities (Effective July 1, 2010)

High Unemployment County Sales & Use Tax Deferral/Waiver for Manufacturing Facilities (Effective July 1, 2010)

Available to:
Manufacturers, persons conditioning vegetable seeds, research and development and commercial testing for manufacturers in a qualifying county or in a Community Empowerment Zone (CEZ).

Qualifying Activity:
Certain construction and equipment purchases for new and expanding businesses.

Reporting/Documentation Requirements:

Program expires July 1, 2020. No applications will be accepted after June 30, 2020.

Qualifying Counties (7/1/14-6/30/16)

Clallam Grays Harbor Pend Oreille
Clark Klickitat Skamania
Columbia Lewis Stevens
Cowlitz Mason Wahkiakum
Ferry Pacific Yakima

Qualifying Counties (7/1/12 - 6/30/14)

Clark Lewis Skamania
Cowlitz Pacific Stevens
Ferry Pend Oreille Wahkiakum
Grays Harbor    

Qualifying Counties (7/1/10 - 6/30/12)

Clark Klickitat Skamania
Columbia Lewis Stevens
Cowlitz Mason Wahkiakum
Ferry Pacific  
Grays Harbor Pend Oreille  

 

 

Special Notices & Publications (pdf format)
High Unemployment County Sales and Use Tax Deferral Program Eligible Counties from July 1, 2014 - June 30, 2016

List of CEZs

RCW
82.60

WAC
458-20-24001

Contact
For questions about the program or the application, please call the Special Programs Division at
(360) 534-1503.


High Technology Industry

High Technology B&O Credit for R&D Spending

High Technology B&O Credit for R&D Spending

Available to:
Businesses conducting research and development (R&D) in Washington State in the fields of:

  • Advanced computing
  • Advanced materials
  • Biotechnology
  • Electronic device technology
  • Environmental technology

Qualifying Activity:
Research and development.

Reporting/Documentation:

  • No application
  • Annual Survey must be filed by April 30th of the following year
  • Electronic filing of all documents required

note Effective June 6, 2011, Engrossed Substitute House Bill (ESHB) 2088 allows businesses to voluntarily donate all or part of their high technology credit to the Opportunity Expansion Program.

Expires January 1, 2015.


Special Notices & Other Publications
(pdf format)

High Technology B&O Tax Credit for Qualified R&D Expenditures and the High Technology Sales and Use Tax Deferral Set to Expire

High Tech B&O Tax Credit Donation

High Technology Business and Occupation Tax Credit Changes

RCW
82.04.4452

WAC
458-20-24003
458-20-268

Contact
For questions about the program, call Aaron Deggs at (360) 705-6643.

For questions about the worksheet, call the Taxpayer Account Administration Division at (360) 902-7175.

 

High Technology Sales & Use Tax Deferral/Waiver

High Technology Sales & Use Tax Deferral/Waiver

Available to:
Limited to businesses conducting R&D and pilot scale manufacturing in the fields of:

  • Advanced computing
  • Advanced materials
  • Biotechnology
  • Electronic device technology
  • Environmental technology

Qualifying Activity:
Certain construction and equipment purchases for new and expanding businesses.

Reporting/Documentation:

  • High Technology Application For Sales and Use Tax Deferral must be filed before building permit is issued
  • All businesses must maintain a qualified activity at the site of the investment project for the year in which the investment project is certified operationally complete plus seven additional years.
  • Annual Survey must be filed by April 30th of the following year in which the project is certified and for the following seven years.
  • Electronic filing of all documents required.
  • Expires January 1, 2015 – Applications should be received by November 1, 2014, to be processed prior to the expiration date.

 

Special Notice & Other Information (pdf format)

High Technology B&O Tax Credit for Qualified R&D Expenditures and the High Technology Sales and Use Tax Deferral Set to Expire

High Technology Sales/Use Tax Deferral

RCW
82.63

WAC
458-20-24003
458-20-268

Contact
For questions about the program or the application, please call the Special Programs Division at (360) 534-1503.



Biotechnology & Medical Device Manufacturing Sales & Use Tax Deferral/Waiver

Biotechnology & Medical Device Manufacturing Sales & Use Tax Deferral/Waiver

Available to:
Biotechnology and medical device manufacturers.

Qualifying Activity:
Certain construction and equipment purchases for new and expanding businesses.

Reporting/Documentation:

  • Biotechnology Products and Medical Devices Application For Sales and Use Tax Deferral must be filed and approved before building permit is issued
  • All businesses must maintain a qualified activity at the site of the investment project for the year in which the investment project is certified operationally complete plus seven additional years.
  • Annual Survey must be filed by April 30th of the following year in which the project is certified and for the following seven years.
  • Electronic filing of all documents required.
  • Expires January 1, 2017


Special Notice & Other Information (pdf format)

Biotechnology Product & Medical Device Manufacturers

RCW
82.75
82.32.645

WAC
458-20-268

Contact
For questions about the program or the application, please call the Special Programs Division at (360) 534-1503.

 


Aerospace Industry

Reduced B&O Tax Rate for Aerospace Businesses

Reduced B&O Tax Rate for Aerospace Businesses

Available to:
Manufacturers and processors for hire of commercial airplanes or component parts of commercial airplanes, non-manufacturers engaged in the business of aerospace product development, certificated FAR repair stations making retail sales, and aerospace tooling manufacturers.

Qualifying Activity:
Manufacturers and Processors for Hire: Manufacturing, and sales by the manufacturer, of commercial airplanes or component parts of commercial airplanes; or tooling especially designed for use in manufacturing commercial airplanes and component parts of commercial airplanes.

FAR Repair Stations: Retail sales made by certificated FAR part 145 repair stations.

Aerospace Non-Manufacturers: Aerospace product development for others.

Reporting/Documentation:

  • No application
  • Annual Report must be filed by April 30th of the following year
  • Electronic filing required


Special Notice & Other Information (pdf format)

Aerospace Manufacturers Tax Incentives

FAR Part 145 Preferential B&O Tax Rate Extended

Tax Incentives for Federal Aviation Regulation Part 145 Repair Stations

Non-manufacturer Aerospace Incentives

Aerospace Tooling Manufacturers Tax Incentives

New and Extended Aerospace Tax Preferences

RCW
82.04.250(3)
82.04.260(11)

82.04.290(3)
82.32.534
82.32.550
82.32.600

WAC
458-20-267

Contact
For questions about the program, call Aaron Deggs at (360) 705-6643.

For questions about the report, call the Special Programs Division at (360) 534-1503.

 

B&O Credit for Preproduction Development Expenditures

B&O Credit for Preproduction Development Expenditures

Available to:
Manufacturers and processors for hire of commercial airplanes or component parts of commercial airplanes, non-manufacturers engaged in the business of aerospace product development, certificated FAR repair stations making retail sales, and aerospace tooling manufacturers.

Qualifying Activity:
Expenditures for aerospace preproduction development.

Reporting/Documentation:


Special Notices & Other Publications (pdf format)

Aerospace Manufacturers Tax Incentives

Tax Incentives for Federal Aviation Regulation Part 145 Repair Stations

Non-manufacturer Aerospace Incentives

Aerospace Tooling Manufacturers Tax Incentives

RCW
82.04.4461
82.32.550

WAC
458-20-267

Contact
For questions about the program, call Aaron Deggs at (360) 705-6643.

For questions about the affidavit, call Brian O'Sullivan at (360) 902-7086.

For question about the report, call the Special Programs Division at (360) 534-1503.


B&O Credit for Property/Leasehold Taxes paid on Aerospace Business Facilities

B&O Credit for Property/Leasehold Taxes paid on Aerospace Business Facilities

Available to:
Manufacturers and processors for hire of commercial airplanes or component parts of commercial airplanes, non-manufacturers engaged in the business of aerospace product development, certificated FAR repair stations making retail sales, and aerospace tooling manufacturers.

Qualifying Activity:
For Manufacturers: Payment of property/leasehold taxes on new buildings, land, the increased value of renovated buildings, and equipment eligible for the machinery and equipment (M&E) exemption that is used exclusively in manufacturing commercial airplanes or components of such airplanes; or in manufacturing tooling specifically designed for use in manufacturing commercial airplanes or components of such airplanes.

For Certificated FAR Part 145 Repair Stations and Aerospace Non-manufacturers: Payment of property/leasehold taxes on new buildings, land, the increased value of renovated buildings, and qualifying computer equipment and peripherals used exclusively in aerospace product development or in providing aerospace services.

Reporting/Documentation:

  • No application
  • Annual Report must be filed by April 30th of the following year
  • Electronic filing required


Special Notices & Other Publications (pdf format)

Aerospace Manufacturers Tax Incentives

Tax Incentives for Federal Aviation Regulation Part 145 Repair Stations

Non-manufacturer Aerospace Incentives

Aerospace Tooling Manufacturers Tax Incentives

RCW
82.04.4463
82.32.545
82.32.550

WAC
458-20-267

Contact
For questions about the program, call Aaron Deggs at (360) 705-6643.

For questions about the report, call the Special Programs Division at (360) 534-1503.

 

Sales & Use Tax Exemption for Aerospace Businesses for Computer Hardware/Software/Peripherals

Sales & Use Tax Exemption for Aerospace Businesses for Computer Hardware/Software/Peripherals

Available to:
Manufacturers and processors for hire of commercial airplanes or component parts of commercial airplanes, non-manufacturers engaged in the business of aerospace product development, certificated FAR repair stations making retail sales, and aerospace tooling manufacturers.

Qualifying Activity:
Purchases of computer hardware, software, and computer peripherals, and charges for labor and services related to the installation of such equipment.

Reporting/Documentation:


Special Notices & Other Publications
(pdf format)

Aerospace Manufacturers Tax Incentives

Tax Incentives for Federal Aviation Regulation Part 145 Repair Stations

Non-manufacturer Aerospace Incentives

Aerospace Tooling Manufacturers Tax Incentives

RCW
82.08.975
82.12.975
82.32.550

Contact
For questions about the program, call Aaron Deggs at (360) 705-6643.

Retail Sales and Use Tax Exemption for the Construction of New Facilities Used to Manufacture Commercial Airplanes, Fuselages or Wings of Commercial Airplanes

Retail Sales and Use Tax Exemption for the Construction of New Facilities Used to Manufacture Commercial Airplanes, Fuselages or Wings of Commercial Airplanes.

Available to:
Manufacturers who construct new buildings and/or new parts of buildings that will be used primarily to manufacture commercial airplanes, commercial airplane fuselages, and commercial airplane wings. Also available to port districts, political subdivisions, or municipal corporations when they construct new facilities to lease to these manufacturers. Effective July 9, 2014.

Qualifying Activity:
The buildings must be used primarily to manufacture commercial airplanes, commercial airplane fuselages and commercial airplane wings as defined in RCW 82.32.550 and RCW 82.32.850.

Reporting/Documentation:

Special Notice & Other Information (pdf format)

New and Extended Aerospace Tax Preferences

RCW
82.08.980
82.12.980
82.32.534
82.32.550
82.32.600
82.32.850
82.32.808

WAC
458-20-267

Contact
For questions about the program, call Aaron Deggs at (360) 705-6643.

For questions about the report, call the Special Programs Division at (360) 534-1503.


Extracting & Timber Manufacturing

Reduced B&O Tax Rate for Timber Extracting and Manufacturing

Reduced B&O Tax Rate for Timber Extracting and Manufacturing

Available to:

  • Timber extractors and extractors for hire,
  • Timber manufacturers and processors for hire;
  • Sales of standing timber (effective July 1, 2007).

Qualifying Activity:

  • Extracting timber or extracting timber for hire
  • Manufacturing or processing for hire:
    • Timber into timber products or wood products; or
    • Timber products into other timber products or wood products
  • Selling at wholesale:
    • Timber extracted by the seller;
    • Timber products manufactured by the seller from timber or other timber products; and
    • Wood products manufactured by the seller from timber or timber products.
  • Sales of standing timber apart of land (effective July 1, 2007)
    • Buyer required to sever timber from land within 30 months

Reporting/Documentation:

  • No application required
  • Annual Survey required by April 30th of the following year 
  • Electronic filing of all documents required

 

Special Notices & Other Publications (pdf format)

Timber Activities – Reduced  Business and Occupation Tax Rates

RCW
82.04.260(12)
82.32.585

WAC
458-20-268

Contact
For questions about the program, call Beth Mills at (360) 705-6642.


Food Manufacturing  Industry

B&O Tax Exemption for Manufacturers of Fresh Fruit & Vegetables

B&O Tax Exemption for Manufacturers of Fresh Fruit & Vegetables

Available to:
Manufacturers of fresh fruit and vegetables.

Qualifying Activity:
Manufacturing fresh fruits or vegetables by canning, preserving, freezing, processing, or dehydrating fresh fruits or vegetables; or

Selling at wholesale fruits or vegetables manufactured by the seller when sold to purchasers who transport the goods out of this state.

Reporting/Documentation:

  • No application
  • Annual Survey must be filed by April 30th of the following year
  • Electronic filing of all documents required

Expires July 1, 2015

 

 

Special Notices & Other Publications (pdf format)

Fresh Fruit/Vegetable, Seafood, and Dairy Product Manufacturers B&O Tax Exemptions Extended

RCW
82.04.4266
82.32.585

Contact
For questions about the program, call Beth Mills at (360) 705-6642.

B&O Tax Exemption for Manufacturers of Seafood Products

B&O Tax Exemption for Manufacturers of Seafood Products

Available to:
Seafood product manufacturers.

Qualifying Activity:
Manufacturing seafood products that remain in a raw, raw frozen, or raw salted state at the completion of the manufacturing by that person; and

Selling at retail or wholesale seafood products manufactured by the seller that remain in a raw, raw frozen, or raw salted state to purchasers who transport the goods out of this state

Reporting/Documentation:

  • No application
  • Annual Survey must be filed by April 30th of the following year
  • Electronic filing of all documents required

Expires July 1, 2015

 

Special Notices & Other Publications (pdf format)

Dairy Product Manufacturer's B&O tax exemption and preferential
B&O tax rate expanded

RCW
82.04.4269
82.32.585

Contact
For questions about the program, call Beth Mills at (360) 705-6642.

B&O Tax Deduction for Manufacturers of Dairy Products

B&O Tax Deduction for Manufacturers of Dairy Products

Available to:
Dairy product manufacturers.

Qualifying Activity:
Manufacturing dairy products; and

Selling at retail or wholesale dairy products manufactured by the seller to purchasers who the goods out of this state; and

Effective October 1, 2013, wholesale sales by dairy product manufacturer to a customer who uses such dairy products as an ingredient or component in the manufacturing of another dairy product in Washington.

Reporting/Documentation:

  • No application
  • Annual Survey must be filed by April 30th of the following year
  • Electronic filing of all documents required

Expires July 1, 2015

 

Special Notices & Other Publications (pdf format)

Dairy Product Manufacturers B&O Tax Deductions

RCW
82.04.4268
82.32.585

Contact
For questions about the program, call Beth Mills at (360) 705-6642.


Biofuel Industry

Waste Vegetable Oil – Sales/Use Tax Exemption and Special Fuel Tax Exemption on Purchases for Personal Use

Waste Vegetable Oil – Sales/Use Tax Exemption and Special Fuel Tax Exemption on Purchases for Personal Use

Available to:
Any person that is not engaged in selling biodiesel fuel at wholesale or retail.

Qualifying Activity
Purchase of waste vegetable oil to produce biodiesel fuel for personal use. Waste vegetable oil is used cooking oil gathered from restaurants or commercial food processors.

Reporting/Documentation:

Electronic filing not required

 

Special Notices & Other Publications (pdf format)
Waste Vegetable Oil Exemption
RCW
82.08.0205

Contact
For questions about the program, call Beth Mills at (360) 705-6642.

 

Reduced B&O Tax Rate for Manufacturing Wood Biomass Fuel

Reduced B&O Tax Rate for Manufacturing Wood Biomass Fuel

Available to:
Manufacturers of wood biomass fuel.

Qualifying Activity
Manufacturing wood biomass fuel.

Reporting/Documentation:

  • No application
  • No Annual Survey/Report
  • Electronic filing not required
  • No expiration date
  • Effective July 1, 2009, manufacturers of biodiesel fuel, biodiesel feedstock, and alcohol fuel no longer qualify for the reduced rate. They must file under the general "Manufacturing" B&O tax classification of 0.484%. (RCW 82.04.260 (1)(e))

 

RCW
82.04.260(1)(f)

Contact
For questions about the program, call Beth Mills at (360) 705-6642.

 

Property/Leasehold Tax Exemption for Manufacturers of Biodiesel/Alcohol Fuel, etc

Property/Leasehold Tax Exemption for Manufacturers of Biodiesel/Alcohol Fuel, etc

Available to:
Manufacturers of alcohol fuel, biodiesel fuel, biodiesel feedstock, or wood biomass fuel.

Qualifying Activity
Manufacturing alcohol fuel, biodiesel fuel, biodiesel feedstock, or wood biomass fuel.

Reporting/Documentation:

  • Application for exemption must be made by November 1 to local county assessor
  • No Annual Survey/Report
  • Electronic filing not required
  • No claims may be filed after December 31, 2015, except claims for anaerobic digesters, which may be filed no later than December 31, 2012

 

RCW
84.36.635
84.36.640

Contact
For questions about the program, call Beth Mills at (360) 705-6642.

 

B&O Tax Deduction for Sales of Biofuels

B&O Tax Deduction for Sales of Biofuels

Available to:
Retail sellers and distributors of biodiesel fuel and E85 motor fuel.
Note: Effective July 22, 2007, “E85 motor fuel” replaces “alcohol fuel.”
Qualifying Activity
When calculating the B&O tax, a deduction may be claimed for amounts received from the retail sale or distribution of:

Biodiesel fuel; or

E85 motor fuel.
Reporting/Documentation:

  • No application
  • No Annual Survey/Report
  • Electronic filing not required
  • Expires July 1, 2015
  • The deduction as it applies to sellers of wood biomass fuel expired July 1, 2009. (RCW 82.04.4335)

 

Special Notices & Other Publications (pdf format)

Biofuel Sellers - Update

RCW
82.04.4334

Contact
For questions about the program, call Beth Mills at (360) 705-6642.

Sales/Use Tax Exemption for Machinery/Equipment, Delivery Vehicles & Construction of Facilities for Retail Sales of Biofuels

Sales/Use Tax Exemption for Machinery/Equipment, Delivery Vehicles & Construction of Facilities for Retail Sales of Biofuels

Available to:
Retail sellers of biodiesel fuel and E85 motor fuel.

Note: Effective July 22, 2007, “E85 motor fuel” replaces “alcohol fuel.”

Qualifying Activity
Purchases of machinery and equipment or services to construct structures, including charges for installing, constructing, repairing, cleaning, decorating, altering, or improving the structures or machinery and equipment, used directly for the retail sale of a biodiesel blend or E85 motor fuel.

Purchases of  fuel delivery vehicles or charges for installing, repairing, cleaning, altering, or improving the vehicles including repair parts and replacement parts if at least seventy-five percent of the fuel distributed by the vehicles is a biodiesel blend or E85 motor fuel.

Reporting/Documentation:

*The exemptions as they apply to retailers of wood biomass fuel expired July 1, 2009. (RCW 82.08.960 and 82.12.960)

 

Special Notices & Other Publications (pdf format)

Biofuel Sellers - Update

RCW
82.08.955
82.12.955

Contact
For questions about the program, call Beth Mills at (360) 705-6642.

 


Semiconductor Industry

Reduced B&O Tax Rate for Manufacturers of Semiconductor Materials

Reduced B&O Tax Rate for Manufacturers of Semiconductor Materials

Available to:
Manufacturing or processors for hire of semiconductor materials.

Qualifying Activity
Manufacturing or processing for hire semiconductor materials. “Semiconductor materials" means silicon crystals, silicon ingots, raw polished semiconductor wafers, and compound semiconductor wafers.

Reporting/Documentation:

  • No application
  • Annual Report must be filed by April 30th of the following year.
  • Electronic filing of all documents required
  • Expires December 1, 2018

 

Special Notices & Other Publications (pdf format)

Semiconductor Material Manufacturers Filing Requirements Amended for Annual Tax Incentive Survey and Report

RCW
82.04.2404
82.32.534

Contact
For questions about the program, call Aaron Deggs at (360) 705-6643.

Sales/Use Tax Exemption for Purchases of Semiconductor Gases & Chemicals

Sales/Use Tax Exemption for Purchases of Semiconductor Gases & Chemicals

Available to:
Manufacturing or processors for hire of semiconductor materials.

Qualifying Activity
Sales of gases and chemicals used by manufacturer or processor for hire in the production of semiconductor materials. “Semiconductor materials" means silicon crystals, silicon ingots, raw polished semiconductor wafers, compound semiconductor wafers, silicon solar wafers, silicon solar cells, thin film solar devices, or compound semiconductor solar wafers.

Effective October 1, 2013, solar grade silicon is added to the term "semiconductor materials" for the sales/use tax exemption. (See RCW 82.04.294)

Reporting/Documentation:

  • Completion of Buyers’ Retail Sales Tax Exemption Certificate for vendor
  • No application
  • Buyer completes in My Account (E-file) Buyers Sales and Use Tax Preference Addendum when filing their tax return beginning August 1, 2013.
  • Annual Tax Incentive Survey filed by April 30th of the following year. (Unless you file an Annual Tax Incentive Report to claim the B&O tax preference under RCW 82.04.2404.)
  • Electronic filing of all documents required
  • Expires December 1, 2018


Special Notices & Other Publications (pdf format)

Semiconductor Material Manufacturers Filing Requirements Amended for Annual Tax Incentive Survey and Report

RCW
82.08.9651
82.12.9651
82.32.585

Contact
For questions about the program, call Aaron Deggs at (360) 705-6643.

 


Aluminum Smelting Industry

B&O Tax/Public Utility Tax Credit for Electricity, Natural Gas, or Manufactured Gas sold to Aluminum Smelters

B&O Tax/Public Utility Tax Credit for Electricity, Natural Gas, or Manufactured Gas sold to Aluminum Smelters

Available to:
A person who sells electricity, natural gas or manufactured gas to an aluminum smelter in Washington State..

Qualifying Activity:
To qualify for the credit a person must sell electricity, natural gas, or manufactured gas to an aluminum smelter.  The credit is equal to the gross amount of sales to the aluminum smelter by the corresponding rate of Business & Occupation (B&O) Tax and/or Public Utility Tax (PUT) but only when it’s specified in a contract that the price of the electricity or gas sold to the smelter will be reduced by an amount equal to the credit.

Reporting/Documentation:

RCW
82.04.4482
82.16.0498

Contact
For questions about the program, call Aaron Deggs at (360) 705-6643.
Reduced B&O Tax Rate for Aluminum Smelting

Reduced B&O Tax Rate for Aluminum Smelting

Available to:
Aluminum smelters and processors for hire who manufacture aluminum in this state.

Qualifying Activity
Manufacturing aluminum and selling the same at wholesale by aluminum smelters and processors for hire.

Reporting/Documentation:

  • No application
  • Annual Report filed by April 30th of the following year.
  • Electronic filing of all documents required.

 

RCW
82.04.2909

WAC
458-20-267

Contact
For questions about the program, call Aaron Deggs at (360) 705-6643.

B&O Tax Credit For State Portion of Sales Tax on Materials Used in Aluminum Smelter

B&O Tax Credit For State Portion of Sales Tax on Materials Used in Aluminum Smelter

Available to:
Aluminum smelters and processors for hire who manufacture aluminum in this state.

Qualifying Activity
B&O tax credit for state portion of sales tax paid on materials, equipment, labor and services used in aluminum smelter.

Reporting/Documentation:

  • No application
  • Person must pay the tax and may then take a credit equal to the state share of retail sales tax paid.
  • Annual Report filed by April 30th of the following year.
  • Electronic filing of all documents required.

 

RCW
82.08.805

WAC
458-20-267

Contact
For questions about the program, call Aaron Deggs at (360) 705-6643.

B&O Tax Credit for Property Tax on Aluminum Smelter

B&O Tax Credit for Property Tax on Aluminum Smelter

Available to:
Aluminum smelter who manufacture aluminum in this state.

Qualifying Activity
B&O tax credit for property tax paid by aluminum smelter.  

Reporting/Documentation:

  • No application
  • Person must pay the tax and may then take a credit equal to the property tax paid.
  • Annual Report filed by April 30th of the following year.
  • Electronic filing of all documents required.

 

RCW
82.04.4481

WAC
458-20-267

Contact
For questions about the program, call Aaron Deggs at (360) 705-6643.

Brokered Natural Gas Use Tax Exemption

Brokered Natural Gas Use Tax Exemption

Available to:
Aluminum smelters who manufacture aluminum in this state.

Qualifying Activity
Use tax exemption for the use of natural or manufactured gas by an aluminum smelter.

Reporting/Documentation:

  • No application
  • Annual Report filed by April 30th of the following year.
  • Electronic filing of all documents required.

 

RCW
82.12.022

WAC
458-20-267

Contact
For questions about the program, call Aaron Deggs at (360) 705-6643.


Farming & Agriculture

Sales/Use Tax Exemption for Replacement Parts for Farm Machinery & Equipment

Sales/Use Tax Exemption for Replacement Parts for Farm Machinery & Equipment

Available to:
Eligible farmers.

Qualifying Activity
Eligible farmers who purchase replacement parts for qualifying farm machinery and equipment.

Note: Effective July 22, 2007, includes charges for labor and services for repairing replacement parts of qualifying farm machinery and equipment

Reporting/Documentation:

 

Special Notices & Other Publications (pdf format)

Repair Parts and/or Services for Farm Machinery and Equipment - Sales and Use Tax Exemptions Update

RCW
82.08.855

Contact
For questions about the program, call John Wack at (360) 705-6658.

Sales/Use Tax Exemption for Equipment to Reduce Field Burning & Construction of Hay Sheds

Sales/Use Tax Exemption for Equipment to Reduce Field Burning & Construction of Hay Sheds Expired January 1, 2011

Available to:
Qualified farmers.

Qualifying Activity
Purchase or use of certain equipment. The exemption is also available for materials, labor, and services for the construction of hay sheds.

Reporting/Documentation:

 

Special Notices & Other Publications (pdf format)

Sales Tax Exemption to Reduce Agricultural Burning Expires

RCW
82.08.841

Contact
For questions about the program, call John Wack at (360) 705-6658.

 

Sales/Use Tax Exemption for Livestock Nutrient Management Equipment & Facilities

Sales/Use Tax Exemption for Livestock Nutrient Management Equipment & Facilities

Available to:
Licensed dairies with certified dairy nutrient management plans and qualifying animal feeding operations.

Qualifying Activity:
Purchases that become an ingredient or component of existing livestock nutrient management equipment and facilities or services provided for operating, repairing, cleaning, altering, or improving this equipment and facilities.

Reporting/Documentation:

Suspended July 1, 2010, through June 31, 2013

 

Special Notice & Other Information (pdf format)

Livestock Nutrient Management Equipment Sales Tax Exemption Suspended

Livestock Nutrient Management - Changes to Tax Exemptions

RCW
82.08.890
82.12.890

Contact
For questions about the program, call John Wack at (360) 705-6658.

 

Sales/Use Tax Exemption for Anaerobic Digesters

Sales/Use Tax Exemption for Anaerobic Digesters

Available to:
Businesses establishing or operating anaerobic digesters used to primarily (more than 50%) treat livestock manure.

Qualifying Activity:
Purchases of tangible personal property that becomes an ingredient or component of the anaerobic digester and charges for installing, repairing, constructing, cleaning, altering or improving the anaerobic digester . 

Reporting/Documentation:

 

RCW
82.08.900
82.12.900

Contact
For questions about the program, call John Wack at (360) 705-6658.

 

Sales/Use Tax Exemption for Farm Fuel Users

Sales/Use Tax Exemption for Farm Fuel Users

Available to:
Farmers producing agricultural products and persons providing horticultural services to farmers.

Qualifying Activity:
Purchases of diesel fuel, biodiesel fuel, or aircraft fuel.  

Reporting/Documentation:

 

Special Notices & Other Publications (pdf format)

Farm Fuel Users - Sales and Use Tax Exemption Update

RCW
82.08.865
82.12.865

Contact
For questions about the program, call John Wack at (360) 705-6658.


Renewable Energy/Green Incentives

Solar Energy System and Components of Solar Energy Systems Manufacturers – Reduced B&O Tax Rate

Solar Energy System and Components of Solar Energy Systems Manufacturers – Reduced B&O Tax Rate

Available to:
Manufacturers, manufacturers that sell their product at wholesale, and processors for hire of solar energy systems and specified components of solar energy systems using photovoltaic modules or stirling converters.

Qualifying Activity:
Reduced B&O tax rate of 0.275% for manufacturers, manufacturers that sell their product at wholesale, and processors for hire of solar energy systems and specified components of solar energy systems using photovoltaic modules or stirling converters.

Reporting/Documentation:

  • No application required
  • Effective October 1, 2013, Annual Tax Incentive Survey must be filed electronically by April 30th of the year, following the year in which the preferential rate is claimed.
  • Before October 1, 2013, an Annual Tax Incentive Report was required to be filed by April 30th.
  • Electronic filing of all documents required
  • Expires June 30, 2017

 

Special Notice & Other Information (pdf format)

Reduced B&O tax rate for manufacturers of solar energy systems and certain components of those systems extended; Sales/use tax exemption for processing semiconductor materials amended

Manufacturers of Solar Systems Using Stirling Converters Receive Reduced B&O Tax Rate

Solar Energy Systems and Semiconductor Incentives

RCW
82.04.294
82.32.534

Contact
For questions about the program, call Beth Mills at (360) 705-6642.

Machinery & Equipment Used to Generate Electricity Using Renewable Energy & Solar Thermal Heat Systems - Sales/Use Tax Exemption

Machinery & Equipment Used to Generate Electricity Using Renewable Energy & Solar Thermal Heat Systems - Sales/Use Tax Exemption

Available to:
Anyone that generates electricity using fuel cells, sun, wind, biomass energy, tidal and wave energy, geothermal resources, anaerobic digestion, technology that converts otherwise lost energy from exhaust, or landfill gas.

Qualifying Activity:

Solar systems up to 10kW:
Effective July 1, 2009 through June 30, 2018, purchases of machinery and equipment that will be used directly in a facility that generates no more than ten kilowatts of electricity using solar energy are exempt from sales/use tax. Also exempt are labor charges to install such equipment. The sales tax exemption is taken at the point of sale. The buyer must provide a completed Buyer's Retail Sales Tax Exemption Certificate to the seller and/or installer.

Expires June 30, 2018.

Solar Thermal Heat

Effective July 1, 2013, the 100% sales/use tax exemption was extended to solar thermal heat systems capable of producing no more than 3 million British thermal units per day that use a solar collector or a solar hot water system.

Expires June 30, 2018.

Solar systems greater than 10kW and other qualified renewable energy systems 1kW or greater:
On July 1, 2011, certain purchases will no longer be exempt at the point of sale, but will require the buyer to pay the sales tax to the seller and installer, and then apply to the Department of Revenue for a refund equal to 75 percent of the tax paid. This refund program applies to:

  • Solar energy systems that produce more than 10kW of electricity;
  • Qualified renewable energy systems that produce at least 1kW of electricity.

Effective July 1, 2013, persons requesting a 75% refund of sales tax paid for qualifying machinery/equipment must file an Annual Tax Incentive Survey with the Department.

The refund program expires January 1, 2020.

Reporting/Documentation:

 

 

Special Notice

Sales/Use Tax Exemption on Purchases of Renewable Energy Systems Extended; Thermal Heat Systems Added; Annual Tax Incentive Survey Required for Refund Applicants

RCW
82.08.962
82.12.962
82.08.963
82.12.963

Contact
For questions about the program, call Beth Mills at (360) 705-6642.

Renewable Energy Cost Recovery Incentive Payment Program - Electrical Energy Production Using Power from Solar, Wind & Anaerobic Digester

Renewable Energy Cost Recovery Incentive Payment Program - Electrical Energy Production Using Power from Solar, Wind & Anaerobic Digester

Available to:
Individuals, businesses, local government entities that are not in the light and power business or gas distribution business, and participants in a community solar project.

Qualifying Activity:
Except for a community solar project, participants must generate electricity on their own property with an anaerobic digester, wind generator, or solar energy system and apply to their light and power company for a payment based on kWhs produced and type of equipment used to produce the electricity.

Reporting/Documentation:

Interim Tax Guidance

 

Special Notice & Other Information (pdf format)

Growth from Renewable Energy Cost Recovery Program

Equipment Approved for "Made in Washington" Renewable Energy Systems Cost Recovery Incentive Payments

Solar Stirling Converter Manufactured in Washington Added to Renewable Energy Cost Recovery Incentive Payment Program

Renewable Energy Cost Recovery Incentive Program - Modifications to Program

Renewable Energy System Cost Recovery Program - Production Incentive

Renewable Energy System Cost Recovery Interim Tax Guidance

RCW
82.16.110
82.16.120
82.16.130

WAC
458-20-273

Contact
For questions about the program, call Beth Mills at (360) 705-6642.

Clean Alternative Fuel Vehicles – Sales/Use Tax Exemption

Clean Alternative Fuel Vehicles – Sales/Use Tax Exemption

Available To:
Any person.

Qualifying Activity:
Purchase or lease of a new passenger car, light duty truck, and medium duty passenger vehicle that is powered exclusively by clean alternative fuels between January 1, 2009, and July 1, 2015.

Reporting/Documentation Requirements:

  • No application
  • No Annual Survey/Report
  • Electronic filing not required
  • Dealer must keep records to substantiate the exemption
Clean alternative fuel exemption expires July 1, 2015

 

Special Notices & Publications
Clean Alternative Fuel and High Mileage Hybrid Vehicles - Sales and Use Tax Changes (pdf)

Does the retail sales tax exemption apply to electric vehicles with extended range gas generators/motors?

RCW
82.08.809
82.12.809

WAC
458-20-279
(2010 legislative changes not reflected in rule)

Contact
For questions about the program, call Beth Mills at (360) 705-6642.

+ Hog Fuel and Forest-Derived Biomass – B&O Tax Credit and Sales/Use Tax Exemption

Hog Fuel and Forest-Derived Biomass – B&O Tax Credit and Sales/Use Tax Exemption

Available to:
B&O credit is available to harvesters of forest-derived biomass.
Sales and use tax exemption is available on purchases of hog fuel.
“Hog fuel” is defined as wood waste and other wood residuals including forest-derived biomass. Does not include firewood or wood pellets.

Qualifying Activity:
B&O credit for harvesters of forest-derived biomass sold, transferred, or used for production of electricity, steam, heat, or biofuel.
B&O credit amount is based on harvested green ton of forest-derived biomass:

  • Harvested July 1, 2010, through June 30, 2013:
      • $3 per harvested green ton
  • Harvested July 1, 2013, through June 30, 2015:
      • $5 per harvested green ton

B&O credit expires June 30, 2015

Sales and use tax exemption on purchases of hog fuel to produce electricity, steam, heat, or biofuel.

Sales/use tax exemptions expire June 30, 2024

Reporting/Documentation:

 

 

Special Notices & Other Publications (pdf format)
B&O Tax Credit for Harvesters of Forest-Derived Biomass Continues

Sales/Use Tax Exemption on Purchases of Hog Fuel Extended; Annual Tax Incentive Survey Required

RCW
82.04.4494
82.08.956
82.12.956

WAC
458-40-610
458-40-650

Contact
For questions about the program, call Beth Mills at (360) 705-6642

Warehouse Incentive Programs

Remittance of State Sales Tax for Warehouses, Distribution Centers, & Grain Elevators

Remittance of State Sales Tax for Warehouses, Distribution Centers, & Grain Elevators

Available to:
Wholesalers or third-party warehousers who own or operate warehouses, grain elevators, and retailers who own or operate distribution centers.

Qualifying Activity:
Sales tax paid on:

  • Construction or expansion of warehouse or distribution center by at least 200,000 square feet
  • Construction or expansion of a grain elevator by at least one million bushel storage capacity
  • Construction or expansion of a cold storage warehouse by at least 25,000 square feet (effective July 1, 2007 until July 1, 2012)

Reporting/Documentation:

 

Special Notice & Other Information (pdf format)

Warehouse (etc.) Remittance Program brochure

"Cold Storage Warehouse" Added to Warehouse Sales Tax Remittance Program

RCW
82.08.820

Contact
For questions about the program, call Beth Mills at (360) 705-6642.

For questions about the application, call Taxpayer Account Administration at (360) 902-7137.

 

Miscellaneous Incentive Programs

Sales/Use Tax Exemption for Motion Picture and Video Production Companies on Rental of Production Equipment and Purchase of Production Services

Sales/Use Tax Exemption for Motion Picture and Video Production Companies on Rental of Production Equipment and Purchase of Production Services

Available to:
Motion picture and video production companies.

Qualifying Activity:
Rental of production equipment  and purchase of production services by motion picture and video production companies.

Reporting/Documentation:

Electronic filing not required


Special Notices & Other Publications
(pdf format)
Expanded Exemptions for Motion Picture and Video Production Companies

RCW
82.08.0315
82.12.0315

Contact
For questions about the program, call Beth Mills at (360) 705-6642.
Commute Trip Reduction Program – B&O Tax/Public Utility Tax Credit

Commute Trip Reduction Program – B&O Tax/Public Utility Tax Credit

Available to:
Employers and property managers.

Qualifying Activity:
Employers and property managers who provide commute trip reduction incentives to or on behalf of their own or other employees. 

Reporting/Documentation:

The program expires June 30, 2015. Any unused credit will expire on June 30, 2015. All approved credit must be used by June 30, 2015. No adjustments will be allowed after this date.

 

Special Notices & Other Publications (pdf format)

Commute Trip Reduction Tax Credit Extended to June 2015

RCW
82.70

Contact
For questions about the program, call Beth Mills at (360) 705-6642.

For questions about the application, call the Taxpayer Account Administration Division at (360) 902-7175.

 

 

Main Street Tax Credit – B&O Tax/Public Utility Tax Credit

Main Street Tax Credit – B&O Tax/Public Utility Tax Credit

Available to:
All businesses that make qualified contributions.

Qualifying Activity:
Contributions made to approved:

    • designated revitalization programs, or
    • the Main Street Trust Fund

 Reporting/Documentation:

  • Application through E-file required before making a contribution
  • No Annual Survey/Report 
  • Electronic filing of all documents required

 

Special Notices & Other Information

More information about the Main Street Credit

RCW
82.73

Contact
For questions about the program, call Beth Mills at (360) 705-6642.

For questions about the application, call the Taxpayer Account Administration division at (360) 902-7175.

 

 

International Services – B&O Tax Credit for new employment

International Services – B&O Tax Credit for new employment

Available to:
Persons providing international services, such as computer; data processing; information; legal; accounting and tax preparation; engineering; architectural; business consulting; business management; public relations and advertising; surveying; geological consulting; real estate appraisal; or financial services in designated geographical areas.

Qualifying Activity:
Creating permanent full-time positions in international services located in a Community Empowerment Zone (CEZ) or designated International Services District. International services must be provided to persons domiciled outside the United States or be for use primarily outside this country.

Credit Amount:
$3,000 per year for each qualified employment position created. Additionally, $3,000 in credit can be taken in each of the following four years if the position is maintained.

Reporting/Documentation:

  • No application
  • No Annual Survey/Report 
  • Electronic filing not required
  • Maintain records necessary for the department to verify eligibility:
  • Employment records for the previous six years;
    • Information relating to description of international service activity engaged in at the eligible location by the person; and
    • Information relating to customers of international service activity engaged in at that location by the person.

 

Special Notices & Other Publications (pdf format)

Questions & Answers about the International Services District Business & Occupation Tax Credit

RCW
82.04.44525

Contact
For questions about the program, call Beth Mills at (360) 705-6642.

Washington Customized Employment Training Program – B&O Tax Credit

Washington Customized Employment Training Program – B&O Tax Credit  

Available to:
All Washington employers.

Qualifying Activity:
Payments to the Employment Training Finance Account through the Customized Employment Training Program for customized employee training.

Credit equals 50% of payment to Employment Training Finance Account.

Reporting/Documentation:

The program expires July 1, 2017

No credits may be claimed after June 30, 2021

 

Special Notices & Other Publications (pdf format)

B&O Tax Credit for Washington Customized Training Program Extended

RCW
82.04.449
82.32.585

Contact
For questions about the credit, call Beth Mills at (360) 705-6642.

For questions about the program, visit the State Board for Community & Technical Colleges

Washington Filmworks Contributors B&O Tax Credit (formerly Motion Picture Competitiveness Program)

Washington Filmworks Contributors B&O Tax Credit (formerly Motion Picture Competitiveness Program)

Available to:
All businesses that make qualified contributions.

Qualifying Activity:
Contributions made to Washington Filmworks (an approved Motion Picture Competitiveness Program).

Reporting/Documentation:

  • The credit is re-instated effective June 7, 2012
  • Credit may be claimed for contributions made from June 7, 2012, through June 30, 2017
  • Contributions must be made before credit is claimed
  • No application required
  • Electronic filing of all documents required

No credit may be earned for contributions made on or after June 30, 2017. No credits may be claimed on returns filed after December 31, 2020.

 

Special Notices & Other Publications (pdf format)

B&O Tax Credit Reinstated for Contributors to Washington Filmworks

RCW
82.04.4489

Contact
For questions about the program, call Beth Mills at (360) 705-6642.

For questions about contributions, visit Washington Filmworks.

Public Utility Tax Credit for Contributions to a Rural Economic Development Revolving Fund

Public Utility Tax Credit for Contributions to a Rural Economic Development Revolving Fund

Available to:
Light and power businesses.

Qualifying Activity:
Contributions by a light and power business to an Electric Utility Rural Economic Development Revolving Fund.

Reporting/Documentation:

 

Special Notices & Other Publications (pdf format)

Electric Utility Tax Credit for Rural Economic Development Revolving Fund

RCW
82.16.0491

Contact
For questions about the program, call Beth Mills at (360) 705-6642.

Weatherization Assistance Program – Sales/Use Tax Exemption

Weatherization Assistance Program – Sales/Use Tax Exemption

Available to:
Department of Commerce weatherization program contractors.

Qualifying Activity:
Purchase of tangible personal property that becomes a component part of a qualifying residence under the weatherization program administered by CTED.

Examples of qualifying weatherization materials
include, but are not limited to the following:

• Insulation and sealants
• Parts for air infiltration
• Heating and cooling equipment
• Supplies used to seal and repair ducts

Please note: Charges for labor and services used to install these materials continue to be subject to sales tax and use tax.

Reporting/Documentation:

Electronic filing not required

 

Special Notices & Other Publications (pdf format)
Sales and Use Tax Exemption for the Weatherization Assistance Program

RCW
82.08.998
82.12.998

Contact
For questions about the tax exemption, call Linda Miller-Baldwin at (360) 705-6649.

For information on the weatherization program, contact Department of Commerce.
Power for Electrolyte Processing – Public Utility Tax Exemption

Power for Electrolyte Processing – Public Utility Tax Exemption

Available to:
Light and power businesses that provide electricity to electrolytic processing businesses.

Qualifying Activity:
Public Utility Tax exemption on sales of electricity made by a light and power business to a chlor-alkali electrolytic processing business or a sodium chlorate electrolytic processing business for the electrolytic process if the contract for sale of electricity to the business contains the following terms:

(a) The electricity to be used in the electrolytic process is separately metered from the electricity used for general operations of the business;

(b) The price charged for the electricity used in the electrolytic process will be reduced by an amount equal to the tax exemption available to the light and power business under this section; and

(c) Disallowance of all or part of the exemption under this section is a breach of contract and the damages to be paid by the chlor-alkali electrolytic processing business or the sodium chlorate electrolytic processing business are the amount of the tax exemption disallowed.

Reporting/Documentation:

 

RCW
82.16.0421
82.32.560

WAC
458-20-267

Contact
For questions about the program, call Beth Mills at (360) 705-6642.

Newspapers - Reduced B&O tax rate for publishers

Newspapers - Reduced B&O tax rate for publishers

Note: Engrossed Senate Bill 6635 temporarily amends the definition of "newspaper" and adjusts the B&O tax rate for printers and publishers of newspapers. See our special notice "Printers and Publishers of Newspapers: B&O Tax Changes and Definitions" for more information.

Available to:
Printers and publishers of newspapers. See RCW 82.04.214 for the definition of “newspaper”

Qualifying Activity:
The reduced rate of 0.2904 percent is available for businesses engaged in the printing and/or publishing of newspapers. Note: Effective July 1, 2012, the definition of newspaper is revised to include electronic (online) versions of newspapers. Therefore income associated with electronic versions of newspapers is subject to B&O tax under the printers and publishers of newspapers classification effective July 1, 2012. This provision expires July 1, 2015.

Reporting/Documentation:

  • No application
  • Annual Report must be filed by April 30 of the following year
  • Electronic filing of all documents required

 

Special Notice & Other Information (pdf format)
Printers and Publishers of Newspapers: B&O Tax Changes and Definitions

B&O Tax Rate Lowered for Printing and/or Publishing of Newspapers

Advertising Income from Electronic Version of Printed Newspaper Now Taxed under Printing and Publishing Classification

RCW
82.04.260
82.04.214
82.32.534
82.32.600

Contact
For questions about the reduced rate, call Aaron Deggs at (360) 705-6643.


List of Rural Counties (from OFM)

 

Community Empowerment Zone (CEZ) Maps

See if your business is in a CEZ. Enter the address in our Tax Rate Lookup Tool.

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International Service District Maps

 

Helpful Information

High Tech Study 2013, Analysis of High Technology Programs

Choose Washington (Department of Commerce)

Tax Incentive Programs - Statistics for 2013 (pdf)

Presentation: Washington's Tax System (pdf) Governor’s Economic and Workforce Development Conference in Vancouver

Questions & Answers