WA People
BILL · 2003–04 SESSION

SB 5725: Semiconductor cluster

Providing tax incentives to support the state's semiconductor cluster.

Summary

  • Creates the following tax preferences for manufacturing semiconductor materials if a contract is signed for an investment of at least $1 billion in a semiconductor microchip manufacturing facility in Washington: Lowers business & occupation (B&O) tax rate for manufacturing semiconductor materials from 0.484% to 0.275%. Exempts gases and chemicals used in semiconductor manufacturing from retail sales and use tax. Exempts construction of new semiconductor manufacturing buildings from retail sales and use tax. Creates a B&O tax job credit of $3,000 for each employment position in semiconductor manufacturing production. Exempts machinery and equipment used in manufacturing semiconductor materials from property taxation.
  • Allows manufacturers of semiconductor microchips a 100% credit against the B&O tax for the first nine years after the bill takes effect.
  • Ends the tax preferences 12 years after they start.
  • Provides for accountability reporting and a review of the rates, credits and exemptions.

From the House Bill Report (SB 5725), written by the Legislature's nonpartisan staff. Read the full report ↗

Enacted Enacted · Chapter 149, Laws of 2003
  1. IntroducedFeb 7, 2003
  2. Out of committeeApr 7, 2003
  3. Passed SenateApr 9, 2003
  4. Passed HouseApr 27, 2003
  5. GovernorMay 8, 2003
  6. LawMay 8, 2003
Prime sponsor
Joseph Zarelli (R-18)
Introduced
February 7, 2003 in the Senate
Last action
May 8, 2003
Session law
Chapter 149, Laws of 2003
Companion bill
HB 1751
Budget
Has a fiscal note

AN ACT Relating to providing tax incentives to support the semiconductor cluster in Washington state;

Sponsors

Prime sponsor: Joseph Zarelli (R-18)

12 co-sponsors (2 Democrats, 10 Republicans)

Senator D-35Don Carlson R-49Aaron Reardon D-38Don Benton R-17Mike Hewitt R-16Shirley Winsley R-28Patricia Hale R-8Larry Sheahan R-9Senator R-15Bill Finkbeiner R-45Stephen Johnson R-47James West R-6

Votes

Senate · 3rd Reading & Final Passage

Passed April 9, 2003
Version voted on: SB 5725
35 Yea 11 Nay 0 Absent 3 Excused
PartyYeaNayAbsentExcused
Democrat111102
Republican24001
How each member voted
Permalink to this vote

House · FP as Amd by the House

Passed April 27, 2003
Version voted on: SB 5725
94 Yea 4 Nay 0 Absent 0 Excused
PartyYeaNayAbsentExcused
Democrat48400
Republican46000
How each member voted

Yea (94)

Permalink to this vote

Senate · Final Passage as Amended by the House

Passed April 27, 2003
Version voted on: SB 5725
40 Yea 8 Nay 0 Absent 1 Excused
PartyYeaNayAbsentExcused
Democrat16800
Republican24001
How each member voted

Excused (1)

Permalink to this vote

History

  1. Effective date 7/27/2003.
  2. Chapter 149, 2003 Laws.
  3. Governor signed.
  4. Passed final passage; yeas, 40; nays, 8; absent, 0; excused, 1.
  5. Senate concurred in House amendments.
  6. President signed.
  7. Speaker signed.
  8. Delivered to Governor.
  9. Third reading, passed; yeas, 94; nays, 4; absent, 0; excused, 0.
  10. Rules suspended. Placed on Third Reading.
  11. Floor amendment(s) adopted.
  12. Committee amendment not adopted.
  13. Placed on second reading.
  14. Minority; do not pass.
  15. FIN - Majority; do pass with amendment(s).
  16. FIN - Executive action taken by committee.
  17. First reading, referred to Finance.
  18. Placed on second reading by Rules Committee.
  19. Third reading, passed; yeas, 35; nays, 11; absent, 0; excused, 3.
  20. Rules suspended. Placed on Third Reading.
  21. Passed to Rules Committee for second reading.
  22. Minority; do not pass.
  23. WM - Majority; do pass.
  24. Referred to Ways & Means.
  25. And refer to Ways & Means.
  26. EC - Majority; do pass.
  27. First reading, referred to Economic Development.

SB 5725 in other sessions

Bill numbers restart every two years, so the same number is a different bill in each session.

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