Semiconductor materials manufacturing after $1 billion investment

From the 2024 DOR Tax Exemption Study

82.04.426 - Semiconductor microchip manufacturing after $1 billion investment Description Businesses that manufacture semiconductor microchips (defined as embedding integrated circuits on semiconductor wafers) are exempt from B&O tax on their manufacturing activity. The exemption is contingent on commencement of commercial operations by a new semiconductor material fabrication facility with an investment in new buildings and equipment amounting to at least $1 billion. This exemption expires January 1, 2024, unless the contingency is met. Purpose To retain and attract semiconductor businesses in Washington. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would not increase revenues because no business is exemption currently utilizing this incentive. Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions This contingency has yet to be met and the investment will not occur during the period of this study. Data Sources Department