WASHINGTON INCENTIVES 

Washington shows an average deal value of $2.59 million with 72 new jobs created per deal

HIGH TECHNOLOGY BUSINESS & OCCUPATION TAX CREDIT

The High Technology Business and Occupation Tax Credit targets industries such as advanced computing, advanced materials, biotechnology, electronic device technology, and environmental technology.  Companies operating in those target industries are eligible to receive an annual credit of up to $2 million for qualified research and development expenditures.  Persons claiming the credit must file an annual survey due by April 30th of the year following any year in which credit is taken.

SALES AND USE TAX EXEMPTION FOR MANUFACTURING MACHINERY & EQUIPMENT

The Sales and Use Tax Exemption is available to manufacturers and processors for hire performing manufacturing and research and development.  The program 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. 

DATA CENTER SALES AND USE TAX EXEMPTION

The Data Center Tax Exemption is available to owners 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 – June 30, 2011 or
  • April 1, 2012 – June 30, 2015

The program provides a sales/use tax exemption on purchases of eligible server equipment and labor and services to install server equipment in an eligible data center, and also purchases of eligible power infrastructure, and labor and services to construct, install, repair, alter, or improve eligible power infrastructure.

WASHINGTON CUSTOMIZED EMPLOYMENT TRAINING

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.

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.

OTHER WASHINGTON INCENTIVE PROGRAMS

  • Aerospace Credit
  • Alternatives to Field Burning B&O Credit
  • Aluminum Smelter Credit
  • Bad Debt Tax Credit
  • Commute Trip Reduction Credit
  • CSP Relief for Sourcing Credit
  • Destination Sourcing Tax Credit
  • Hazardous Substance
  • Hospitals Safe Patient Handling Credit
  • International Services Credit
  • Main Street Credit
  • Motion Picture Competitiveness Programs
  • Multiple Activities Tax Credit
  • Public Utility Tax Credit for Billing Discounts
  • Renewable Energy System Cost Recovery Credit
  • Small Business B&O Tax Credit
  • Syrup Tax Credit
  • Tobacco Products/Cigar Tax Credit