TAX INCENTIVES

A variety of tax incentives are available 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 ($18.64 in 2016) that a business creates. A company must retain the position for five years or pay back the credit with interest. Click here to learn more.

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