Washington's Tax Advantages:
- No Personal Income Tax
- Substantial benefit for entrepreneurs running their own company
- Substantial benefit for highly compensated executives
- Reduced administrative costs associated with employees
- Reduced cost of labor since employees pay no income taxes
- No Tax on Intangibles
- No tax on income from stocks, bonds, or investment portfolios
- No Capital Gains Tax
- Substantial benefits for investors and retirees
- B&O (Gross Receipts) Tax has low
flat rates
- Benefit for firms with high profit margins
- Rate of just under one-half of one percent for most activities
- B&O Tax rates are easy to calculate
- Average Property Taxes with protections
for business
- Moderate, predictable property taxes
- Various property tax limitations
- Businesses and residential property are taxed the same
- Many Tax Incentives
- Exemptions
- Preferential B&O Tax Rates
- B&O Tax Credits
- Sales/Use Tax Deferrals & Waivers
Now Available:
Click here for a PDF with an overview of B&O tax credits available for qualified businesses in Clallam County.
Locating your business in
Clallam County
may qualify for these tax advantages:
B&O Tax Credit Training Assistance for New and Expanding Businesses
The new Washington Customized Training Program is a revolving loan fund that covers businesses' up-front training costs and provides a 50% Business and Occupation tax credit to businesses locating or expanidn in the state. The program began on June 7, 2006, and will expire on July 2012. It is administered by the State Board for Community and Technical Colleges. (Second Substitute Senate Bill 6326)
For more information on this program, see: http:\\www.sbctc.ctc.edu
Business & Occupation Tax Credit for New Jobs
What type of businesses: Manufacturing, R&D, computer service firm.
Incentive: A $2,000 or $4,000 (if wages exceed $40,000) credit against the business and occupation tax is available for each new employment position created and filled by specific industries.
High Technology Business & Occupation Credit
What type of businesses: Advanced computing, advanced materials, biotechnology, electronic device techonology, environmental technology.
Incentive: An annual credit of up to $2 million for high technology businesses that perform R&D in specific high technology categories.
Business & Occupation Tax Credit for Job Training Services
What type of businesses: Manufacturers, R&D (excluding light and power businesses)
Incentive: 20% of the cost spent on job training. Limited to $5,000 annually.
Business & Occupation Tax Credit for New Jobs in Programming or Software manufacturing.
What type of businesses: Software manufacturers or programming businesses
Incentive: $1,000 per year for every new employment position up to five years.
Information Technology Help Desk Services Business & Occupation Tax Credit
What type of businesses: Help desk services are telephone or electronic communications supplying technical assistance for computer software and hardware.
Incentive: Third party help desk service firms are eligible for a 100% tax credit on income received.
Sales & Use Tax Exemptions & Deferrals
Manufacturing Machinery Sales & Use Tax Exemption
What type of businesses: Manufactureres, processors for hire, manufactureres who perform R&D.
Incentive: Exempts sales and use tax on machinery and equipment used directly in manufacturing or research operations. Includes installation, maintenance, and repairs in most casees.
Rural County Sales & Use Tax
What type of business: Manufacturers, R&D (excluding light and power businesses) that locate in qualifying rural counties or distressed areas.
Incentive: Defers or waives sales and use tax on machineray and equipment, cost of expansion or modernization of existing facility if floor space or production capacity is increased; construction costs for qualified leased building.
High Technology Sales & Use Tax Deferral
What type of businesses: Advanced computing, advanced materials, biotechnology, electronic device technology, environmental technology.
Incentive: Defers or waives sales and use tax associated with new R&D or pilot scale manufacturing operations, or expanding, renovating or equipping an existing facility to current operation.
Electricity Generating Equipment Sales & Use Tax Exemption
What type of businesses: Firms producing energy.
Incentive: PRovides a sales and use tax exemption for machinery and equipment used directly in generating electricity using fuel cells, wind, solar or landfill gas energy, and for the labor and services necessary to install such equipment, but only if the purchaser develops a facility capable of generating not less than 200 watts of electricity.
For Frequently Asked Questions about Washington State Tax Incentives, see the Department of Revenue.
Hiring and Training Employees
Businesses can also reduce costs through Washington's Hiring and Training Programs. For more information click here.
Information regarding the changes to the existing programs and the new programs can be obtained from the Washington State Department of Revenue Telephone Information Center at 1-800-647-7706. Or go to the Department of Revenue website.
More Resources:
Washington State Community Trade and Economic Development (CTED)
Updated on November 1, 2006
