Multiple activities tax credit - instate

From the 2024 DOR Tax Exemption Study

82.04.440(2,3) - Multiple activities tax credit - instate Description Businesses engaging in multiple taxable activities in Washington with respect to a product may take a credit so tax is effectively paid for only one of the activities. For example, a business that manufactures and/or extracts and sells a product receives a credit for taxes paid on manufacturing and/or extracting activities. Purpose Ensures B&O tax applies to in-state and out-of-state activities equally and businesses do not pay taxes on a product more than once. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $225.300 $220.300 $228.200 $235.300 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this credit would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $202.000 $228.200 $235.300 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the manufacturing B&O taxable activity growth rate reflected in the Economic and Revenue Forecast Council's March 2023 forecast. Data