Semiconductor materials manufacturing - preferential rate

From the 2024 DOR Tax Exemption Study

82.04.2404 - Semiconductor materials manufacturing Description Washington provides a preferential B&O tax rate of 0.275% on the manufacturing or processing for hire of semiconductor materials. This preferential rate expires December 1, 2028. Any person claiming the preferential rate must reimburse the department 50% of the amount of the preference if the number of persons employed by the person claiming the tax preference is less than 90% of the employment average for the previous three years. Manufacturers with no tax preference pay tax at the rate of 0.484%. Purpose To retain existing semiconductor businesses and to attract similar businesses to Washington. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes CTI CTI CTI CTI Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this preferential tax rate would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 CTI CTI CTI Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions This preferential tax rate impacts fewer than three taxpayers; any impacts are confidential. Data Sources Department of Revenue, Excise tax dat