Biggins Lacy Shapiro & Company, LLC

Washington Economic Development Incentive Programs

TAX CREDITS

Multiple Activities Tax Credit (MATC):  Businesses that perform more than one taxable activity for the same product are ordinarily subject to the state’s Business and Occupancy (B&O) Tax multiple times to reflect each taxable activity.  To avoid being taxed multiple times, the State allows companies to take a credit so that the B&O tax is only paid once for the same product.  

Business and Occupation (B&O) Tax Credits: B&O Tax credits are available for eligible aerospace, high technology industries, smelting, forestry and biomass businesses and activities statewide.  Qualifying activities vary by industry and include property/leasehold taxes paid specific industry business facilities, preproduction development expenditures, and R&D.

TAX EXEMPTIONS

Sales and Use Tax Exemptions: Exempts sales and use tax on manufacturing, biofuel, renewable and biomass, semiconductor, smelting, farming and agriculture, and associated research/laboratory for specific machinery and equipment used directly in in these industries and research operations including the remittance of sales tax for qualifying warehouses distribution centers and grain elevators. The state also will defer or waive sales and use taxed used in the construction or renovation of structures or the machinery used for biotechnology manufacturing. 

GRANTS

Governor’s Strategic Reserve Fund (GSRF):  The GSRF is a discretionary job creation/retention incentive that can be used for workforce development, technical or planning assistance, environmental analysis, or relocation assistance. The fund is competitive and is ultimately at the discretion of the Governor.

TRAINING PROGRAMS

Washington Customized Training Program (CTP):  The State Board for Community and Technical Colleges (SBCTC) provides interest-free training loan assistance to businesses. Upon completion of the job training, the company is required to pay the SBCTC for the cost of training. The State then provides a tax credit equal to 50% of a company’s B&O tax. Unused credits may be carried forward until July 1, 2021.

Job Skills Program (JSP):  This program also is administered through the community/technical college system and is a cost-share between the employer and the State; each pays 50% of total program cost. The employer contribution can be an in-kind match through employee-paid wages during training and use of the employer’s facility. The program is funded at approximately $2.2 million/year statewide.

Work Start: Work Start is a business-driven workforce-training program using the Governor’s Strategic Reserve Funds to provide employers with flexible customized training in direct alignment with the state’s business recruitment, retention and expansion efforts.  Work Start will coordinate with state and local training programs to ensure the best program of training is delivered in the most efficient manner. 

SPECIAL ZONING

Rural County/CEZ Business and Occupation (B&O) Tax Credits: Businesses that locate or expand in rural counties or community empowerment zones are eligible to receive certain B&O Tax credits. Manufacturing, R&D, and computer service firms that create new jobs may receive an as-of-right tax credit of up to $4,000 per job.  The tax credit may be claimed for up to 5 years.

Rural County/CEZ Sales and Use/Public Utility Tax Exemption: Sales and utility tax exemptions also are available for qualifying new data center operations in rural counties and CEZ zones.  

Last updated: June 2018



 
Biggins Lacy Shapiro & Company, LLC
609-924-9775
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