WASHINGTON STATEADVANCED MANUFACTURING

WASHINGTON REWARDS PRODUCTIVE COMPANIESBased on sound policies that reward the most productive
companies, Washington State allows companies to keep more of
their profits to improve operations, grow and succeed. This is oneof the many reasons why Washington companies achieve such highlevels of success, placing them at the top of the global economy.
•The state does not have a corporate income tax. Regardless ofthe profitability of the company, taxes are only paid on grossreceipts.

•Washington uses a business and occupation (B&O) tax in placeof an income tax. Virtually all businesses are subject to this tax.
Based on gross receipts, this taxation structure can be very
beneficial to your company. The rate for a manufacturing
facility is .00484.

•Washington is one of only seven states that does nothave a personal income tax. Washington also does
not impose a tax on intangible assets such as bankaccounts, stocks or bonds. Additionally, Washington
does not tax retirement income earned and received
from another state. There is no current legislation in theworks to create an income tax.

•Washington State relies on consumer taxes rather thanpersonal income tax — the most significant of these taxes
is the retail sales tax. Sales tax does not apply to foodproducts, prescription drugs, or professional and personalservices.

•Washington State property taxes vary due to voter-approved
special levies. Local governments administer property tax.
County assessors value and assess the tax, and county
treasurers collect it. Washington does not assess property tax
on intangible assets, including patents and copyrights.

www.ChooseWashingtonState.com

BUSINESS INCENTIVES FOR MANUFACTURERS
The Department of Commerce’s business development teamworks on targeted company recruitment, retention and expansion
activities to help businesses like yours locate and growsuccessfully in Washington State.
Working with local economic development organizations,education and labor leaders, local government entities andelected officials around the state, the Office of Economic
Development and Competitiveness supports existing businesses
and siting new ones in our state.
Our economic development strategy provides businesses andinvestors with adaptive and customized programs and services
that meet your specific needs so you can increase sales, enter
new markets, find new partners, make substantial investments inthe state and expand strategically.

Business & Occupation Tax Credit based on wages for new
employees in manufacturing and R & D labs and commercial
testing facilities in rural counties or within a Community
Empowerment Zone (CEZ). Eligible rural counties/CEZ.
Job Skills Program Competitive Grant provides customized
employment training. $900 per trainee.
CERB/Committed Private Partner (CPP) Loans and Grants
for construction of public infrastructure necessary for private
business expansion. CPP Program requires a private business
commitment as part of the public entity’s application. $2 million
loan max. Up to $150,000 grant or 50% of CERB request.

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Once a specific location has been identified in Washington State,detailed discussions with your company regarding its operations
will help identify specific incentives available to you. We will workwith you to streamline permitting and zoning at the state andlocal levels.

Sales and Use Tax Exemption for manufacturing machinery andequipment used directly in a manufacturing operation. Savings
amount to 6.5% + local rate.

MORE INFORMATION

www.ChooseWashingtonState.com | moreinfo@choosewashingtonstate.com | (206) 256-6100