Modifying high technology and research and development tax incentive provisions.
Summary
Extends the business and occupation tax (B&O) credit for research and development (R&D) spending from December 31, 2004 to January 1, 2015.
Extends the sales and use tax exemption for new, expanded, or diversified operations in R&D or pilot scale manufacturing from July 1, 2004 to July 1, 2015.
Limits the R&D credit calculation to the amount of R&D expenditures in excess of 0.92 percent of taxable income and computes the credit for firms other than non profits using the firm's average tax rate rather than 1.5 percent.
Allows University of Washington and Washington State University to use the sales and use tax exemption for R&D facilities and equipment. Includes federal contractors building federal R&D facilities in the exemption.
Requires credit and exemption users to report annually on the amount of B&O tax credit or sales tax exemption taken; number of new products, trademarks, patents, and copyrights; number of jobs and the percent of full and part-time jobs; wages by salary band; number of jobs with employer provided health and retirements; and other company related information.
Allows public disclosure of the amount of the sales tax exemption taken and the amount of credit taken for firms taking more than $10,000 in annual credits.
From the Substitute House Bill Report (SHB 2546), written by the Legislature's nonpartisan staff. Read the full report ↗