There are a variety of tax incentives available for the manufacturer – both general, and industry specific. For more information and questions about qualifications please contact the economic development team and visit the department of revenue at www.dor.wa.gov.

Sales and Use Tax Exemption for Manufacturing Machinery & Equipment
New or replacement manufacturing machinery and equipment is exempt from retail sales and use tax if it is used in a manufacturing, R&D, or third party testing operation. Materials and installation labor, repair parts and labor, and labor charges for cleaning, altering, or improving machinery and equipment are also exempt. Machinery and equipment include manufacturing machinery, manufacturer’s R&D equipment, third party’s testing equipment, pollution control equipment, and the internal use portion of co-generation equipment.

Aerospace Industry Manufacturer Incentive
Persons manufacturing component parts of commercial airplanes may be eligible for: 1) Business and occupation tax rate reductions – a 40% reduction in rate; 2) Pre-production development business and occupation tax credits equal to 1.5% of production expenditures; 3) Sales and use tax exemptions on computer hardware, computer peripherals, and software, including installation labor, used for development, design, and engineering of components of commercial airplanes; and 4) Business and occupation tax credits on certain property taxes paid.

Development in Rural Counties/Community Empowerment Zones (CEZ)
Manufacturing in Rural Counties/CEZ
For more information please visit our page highlighting the Spokane Community Empowerment Zone.