Incentives for qualifying businesses

Below are just a few examples. For a complete list and details, click here to be taken to a comprehensive page maintained by the State of Washington.

Aerospace
  • Reduced B&O tax rate for aerospace businesses
  • B&O credit for preproduction development expenditures
  • B&O credit for property/leasehold taxes paid on aerospace business facilities
  • Sales & use tax exemption for aerospace businesses for computer hardware/software/peripherals
  • Retail sales and use tax exemption for the construction of new facilities used to manufacture commercial airplanes, fuselages or wings of commercial airplanes
Warehouse and Distribution

Remittance of state sales tax for warehouses, distribution centers, & grain elevators

Manufacturers and Food Processors
  • Sales and use tax deferral certificate for manufacturers – eligible investment projects
  • Sales and use tax exemption for manufacturing machinery & equipment
  • B&O tax exemption for manufacturers of fresh fruit & vegetables
  • B&O tax exemption for manufacturers of seafood products
  • B&O tax deduction for manufacturers of dairy products
City of Tacoma

The City of Tacoma provides a $500 credit per year for five years against its local B&O taxes for every new, permanent, family-wage job ($19.12 in 2017) that a business creates. A company must retain the position for five years or pay back the credit with interest.

Renewable Energy, Green Incentives
  • Clean alternative fuel commercial vehicles – B&O and PUT credit
  • Electric vehicle batteries and electric vehicle infrastructure (charging stations) – sales/use tax exemption, leasehold tax exemption
  • Solar energy system and components of solar energy systems manufacturers – reduced B&O tax rate
  • Machinery & equipment used to generate electricity using renewable energy & solar thermal heat systems – sales/use tax exemption
  • Renewable energy cost recovery incentive payment program – electrical energy production using power from solar, wind & anaerobic digester
  • Clean alternative fuel and plug-in hybrid vehicles – sales/use tax exemptions
Miscellaneous
  • Sales/use tax exemption for motion picture and video production companies on rental of production equipment and purchase of production services
  • Commute trip reduction program – B&O tax/public utility tax credit
  • Main street tax credit – B&O tax/public utility tax credit
  • Washington customized employment training program – B&O tax credit
  • Washington filmworks contributors B&O tax credit (formerly Motion Picture Competitiveness Program)
  • Weatherization assistance program – sales/use tax exemption

Ask us how we can help your business get the most benefit from applicable tax incentives.