Semiconductor microchip manufacturing after $1 billion investment

From the 2024 DOR Tax Exemption Study

82.04.240(2) - Semiconductor materials manufacturing after $1 billion investment Description Businesses manufacturing semiconductor materials are subject to the B&O tax at a rate of 0.275%, instead of the general manufacturing rate of 0.484%. The lower tax rate is contingent upon the commencement of a commercial operation of a new semiconductor microchip fabrication facility with an investment in new buildings and equipment amounting to at least $1 billion prior to January 1, 2024. If the contingency does not occur, the reduced rate expires January 1, 2024. Purpose To encourage retention of existing semiconductor businesses in Washington, while attracting similar businesses to Washington. Taxpayer ($ 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 $0.000 Repeal of Repealing this B&O tax preferential rate would not increase revenues because no exemption business is currently utilizing this incentive. Potential ($ 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 - No taxpayers are current