|Purchases of Machinery & Equipment
Used Directly in a Manufacturing Operation
|High Technology B&O
Credit for R&D Spending
|Research and Development||TBD|
|High Tech sales/use tax
|Research and Development||6.5%+local rate|
|B&O Tax Credit Program||Customized Employment Training Program||50% of cost of training|
|Job Skills Program –
|Training||$900 per trainee|
|Manufacturers, persons conditioning vegetable seeds, research and development and commercial testing for manufacturers in a qualifying county or in a Community Empowerment Zone (CEZ).||6.5%+local rate|
|Business and Occupation
Tax Credit for New Hires
|Job Creation||Up to $4,000 credit for each new position|
Manufacturer’s Sales/Use Tax Exemption on Purchases of Machinery & and Equipment Used Directly in a Manufacturing Operation
This incentive applies to purchases by manufacturers or processors for hire of machinery and equipment used directly in a manufacturing operation, testing operation, or research and development operation. The exemption also applies to charges for labor and services for installing, repairing, cleaning, altering, or improving qualifying machinery and equipment. (RCW 82.08.02565 and 82.12.02565).
High Technology B&O Credit for R&D Spending
High technology businesses may claim a B&O tax credit for research and development activities in Washington. Businesses performing research and development in the following areas qualify for the high technology credit: advanced computing, advanced materials, biotechnology, electronic device technology, and environmental technology.
High Tech sales/use tax Deferral/Waiver Program
To be eligible for this incentive, the company must start new research and development or pilot scale manufacturing operations, or expand or diversify a current operation by expanding, renovating or equipping an existing facility anywhere in Washington. The technology categories are advanced computing, advanced materials, biotechnology, electronic device technology, and environmental technology.
Customized Training Program
Allows your company to get a state B&O tax credit equal to 50% of the training cost.
Jobs Skill Program
Helps your business remain competitive. You can get training by applying with a college and save up to $900 per trainee.
High Unemployment County Sales & Use Tax Deferral/Waiver for Manufacturing Facilities
The High Unemployment County Sales/Use Tax Deferral Program grants a deferral (and ultimate waiver) of sales/use tax on charges for construction and purchases of qualified machinery and equipment to manufacturers, research and development laboratories, commercial testing facilities, and persons conditioning vegetable seed located in qualifying counties or Community Empowerment Zones (CEZ).
The sales and/or use taxes on qualified construction and equipment costs for such businesses located in qualified counties or CEZs are waived when all program requirements have been met and verified.
Rural County B&O Credit for New Employees
Provides a credit against the B&O tax for each new employment position filled and maintained by qualified businesses located in a rural county or CEZ. The Program provides a $2,000 credit for each new qualified employment position with annual wages and benefits of $40,000 or less; or a $4,000 credit for each new employment position with wages and benefits of more than $40,000 annually. To be granted the credit, the business’s average qualified employment positions at the specific facility must increase by at least 15 percent over the following four calendar quarters from the period in which the employee was hired.
For more details about incentives please refer to the Department of Revenue brochure:
To facilitate the location and expansion of industry, Washington State has created a special contingency fund to finance local public improvements required for development. The Community Economic Revitalization Board (CERB) administers the development fund for the state. CERB monies are awarded as loans, or in special cases grants, to local governments on an as-needed basis for public works projects. Eligible activities include access roads, sewer and water extensions and other public improvements.
In order to stimulate a significant level of investment and job creation, CERB has established general funding guidelines, which take into account the following:
- Number of jobs to be created
- Economic diversification potential
- Public and private sector capital commitment
- Feasibility of project completion
- Ability of applicant to repay
Development Loan Fund
The Development Loan Fund may loan up to $350,000 and can provide one dollar for every two dollars of private loans or capital. The loan amount is determined by the financing "gap" and job impact.
Development Loan Funds may be used for the acquisition, engineering, improvement, rehabilitation, construction, operation or maintenance of any property, real or personal, used by the business. Working capital term loans are also eligible. The DLF funds are designated to finance that portion of a project which cannot be financed through other sources and which is the last gap needed to be filled before the project can proceed. Rates of interest and other loan terms are determined by the need for the project and by competitive factors.
Workforce Development Council Programs
The cost of hiring and training new employees may be significantly reduced by programs operated on behalf of South Central Workforce Council. Employers may request customized skill training of job applicants prior to hire, and wage reimbursements of up to 50 percent for new employees hired through on-the-job training vouchers. Their programs are designed to train a broad spectrum of motivated job seekers, from high school students through mature workers