News
TAX UPDATE
Polysilicon manufacturers--EHSB 3303 (chapter 283, Laws of 2008) in Washington State provides a Business & Occupation tax CREDIT for qualified preproduction development expenditures incurred after January 1, 2008, by eligible polysilicon manufacturers. The credit is equal to 7.5% of the qualified preproduction development expenditures. This new tax credit became effective June 12, 2008.
Deferral program for corporate headquarters-- located in community development empowerment zones--2SSB 6626 (chapter 15, Laws of 2008) creates a sales and use tax DEFERRAL for construction of corporate headquarters in a community empowerment zone (CEZ). To qualify, the building(s) must be at least $30 million. The corporate headquarters must employ at least 300 people whose wages must exceed the state average annual wage. If program requirements are met, repayment of the deferred sales and use taxes are waived.
Aerospace tax incentives--SSB 6828 (chapter 81, Laws of 2008) expands the eligibility of several existing aerospace tax incentives to FAR Part 145 certificated repair stations, manufacturers of tooling specifically designed for use in manufacturing commercial airplanes or components of commercial airplanes, and non-manufacturers that design and engineer aerospace products. These businesses will be eligible for a 40 percent B&O tax rate reduction, a B&O tax credit for proerty taxes and leasehold excise taxes paid in respect to qualifying property, a B&O tax credit for preproduction development expenditures, and a sales and use tax exemption for certain computer hardware, software, and peripherals. The bill also expands the reduced B&O tax rate for certain FAR Part 145 certificated repair stations. Effective: July 1, 2008; FAR Part 145 rate reduction expires July 1, 2011; all other incentives expire July 1, 2024.
SALES AND USE TAX EXEMPTIONS FOR HYBRID AND ALTERNATIVE FUEL VEHICLES-- Beginning January 1, 2009, purchases or acquisitions of certain vehicles that use clean alternative fuels are exempt from Washington sales and use taxes for a limited period. See (RCW 82.08.809 and RCW 82.12.809) for sales of passenger vehicles that:
*Are powered exclusively by a clean alternative fuel such as natural gas, propane, hydrogen or electric power.
*Use hybrid technology and have a mileage rating of at least 40 mpg.
This exemption expires two years later on January 1, 2011.