State Incentives

Washington State Incentive Programs

The State of Washington offers incentives for a variety of project and business types. These incentives were created and are maintained for the purpose of attracting and retaining businesses in Washington State.

The below incentives are targeted at Spokane Valley’s strategic key industries. Additional incentives are available for a variety of other industries beyond those included below. For more details on the below incentives and a full list of additional programs available, visit the Washington Department of Revenue website.

Aerospace Industry

A variety of incentives are available for manufacturers of commercial airplanes or component parts of commercial airplanes and non-manufacturers engaged in the business of aerospace product development, certified FAR repair stations making retail sales, and aerospace tooling manufacturers.

  • The Reduced Business and Occupation (B&O) Tax Rate for Aerospace Businesses provides a reduced rate for manufacturing, and sales by the manufacturer, of commercial airplanes or component parts, or tooling especially designed for use in manufacturing commercial airplanes and component parts.
  • The B&O Credit for Preproduction Development Expenditures is available for expenditures for aerospace preproduction development.
  • The B&O Credit for Property/Leasehold Taxes on Aerospace Business Facilities is available for payment of property/leasehold taxes on new buildings, land, the increased value of renovated building, and equipment eligible for the machinery and equipment exemption that is used exclusively in manufacturing commercial airplanes or components, or in manufacturing tooling specifically designed for use in manufacturing commercial airplanes or components.
  • The Sales & Use Tax Exemption for Aerospace Businesses for Computer Hardware, Software and Peripherals is available for the purchase of computer hardware, software, computer peripherals, and charges for labor and services related to the installation of such equipment.
  • The Retail Sales & Use Tax Exemption for the Construction of New Facilities is available for the construction of buildings used to manufacture commercial airplanes, fuselages and wings; as well as for the construction of new buildings to be used for repair and maintenance.

Aluminum Smelting Industry

  • The B&O Tax/Public Utility Tax Credit is available for sellers of electricity, natural gas or manufactured gas to an aluminum smelter in Washington State. The credit is equal to the gross amount of sales to the aluminum smelter by the corresponding rate of Business & Occupation Tax and/or Public Utility Tax.
  • The Reduced B&O Tax Rate for Aluminum Smelting is available to Washington smelters manufacturing aluminum and selling the same at wholesale by aluminum smelters and processors for hire.
  • The B&O Tax Credit For State Portion of Sales Tax on Materials Used in Aluminum Smelter is available for aluminum smelters who manufacture aluminum in Washington and offers a tax credit for the state portion of sales tax paid on materials, equipment, labor and services used in aluminum smelter.
  • The B&O Property Tax Credit is available to Washington smelters for a tax credit for a B&O tax credit for property tax paid by the smelter.
  • The Brokered Natural Gas Use Tax Exemption is available for smelters to receive a use tax exemption for the use of natural or manufactured gas.

High Technology Industry

The Biotechnology & Medical Device Manufacturing Sales & Use Tax Deferral/Waiver is available to biotechnology and medical device manufacturers for certain construction and equipment purchases for new and expanding businesses.

Manufacturing Industry

The Machinery and Equipment Sales & Use Tax Exemption is available to manufacturers performing manufacturing and R&D. Qualifying activities include the purchase of qualifying machinery and equipment used directly in a manufacturing operation or research and development performed by a manufacturer, or testing operations performed for a manufacturer.

Warehousing Industry

The Remittance of State Sales Tax for Warehouses is available to wholesalers or third-party warehousers who own or operate warehouses, grain elevators or retailers who own or operate distribution centers. The incentive applies to sales tax paid on the construction or expansion of warehouse or distribution centers by at least 200,000 square feet or the construction or expansion of a grain elevator by at least one-million-bushel storage capacity.

 

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