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.  

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.

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 (including data centers) 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.

TAX EXEMPTIONS/REDUCTIONS, & DEREFERRALS

Sales and Use Tax Exemption: 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.

Last Updated: June 2017

 


 
BIGGINS LACY SHAPIRO & COMPANY
 
PRINCETON
47 Hulfish Street, Suite 320
Princeton, NJ 08542
(609) 924-9775
NEW YORK
215 Park Ave South
New York, NY 10003
(646) 652-7555
CHICAGO
30 S. Wacker, Suite 2200
Chicago, IL 60606
(312) 924-2490
CALIFORNIA
1255 Treat Boulevard, Suite 300
Walnut Creek, CA 94597
(925) 239-1711