Taxes and Cost-saving Incentives

Washington State has:

WA State has no income, corporate, or inventory taxes

No personal state income tax.

No corporate income tax.

No inventory tax.

Pierce County has:

No head tax.

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

Aerospace
  • No sales tax or use tax on machinery and equipment used in manufacturing operations
  • No sales or use tax for aerospace businesses for computer hardware/software/peripherals
  • B&O credit for property/leasehold taxes paid on aerospace business facilities
  • 40% reduction in Business & Occupation (B&O) tax rate for aerospace businesses
  • No retail sales or use tax for the construction of new facilities used for airplane repair and maintenance
  • One of the largest, most successful foreign trade zones
  • Workforce training grants and credits
  • Other project-specific state and local programs

Learn more about Tacoma-Pierce County’s deep aerospace roots and additional incentives.

Technology
  • No per-employee “head tax.”
  • Business & Occupation (B&O) tax rate of 0.4% for all office and service businesses; state and local tax breaks for new employees can help offset this.
  • Job training funds through licensed educational institutions
  • Electric rates are 50% below national averages and 60% below West Coast averages
  • State of Washington B&O tax credit for customized training
  • State of Washington Strategic Reserve Fund
  • Other project-specific State and local programs

See what Pierce County has to offer your tech firm.

Logistics
  • Remittance of state sales tax for warehouses, distribution centers, & grain elevators
  • Job training funds through licensed educational institutions
  • Electric rates are 50% below national averages and 60% below West Coast averages
  • State of Washington B&O tax credit for customized training
  • State of Washington Strategic Reserve Fund
  • Other project-specific State and local programs
Manufacturers and Food Processors
  • 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
Opportunity Zones

The Tax Cuts and Jobs Act of 2017 was signed into law on Dec. 22, 2017. The Opportunity Zone program was included  in that act, which was designed to provide tax incentives to investors who fund businesses in underserved communities.

Investors are able to defer paying taxes on capital gains that are invested in Qualified Opportunity Funds that in turn are invested in distressed communities designated as Opportunity Zones by the governor of each state. Up to 25 percent of the low-income census tracts in each state can be designated as Opportunity Zones.

Ask us how you might benefit from investing in one of Pierce County’s 12 designated Opportunity Zones.

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
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.