Manufacturing for government

From the 2024 DOR Tax Exemption Study

82.29A.020(1)(a) - Manufacturing for government Description "Leasehold interest" excludes interest in personal property owned by the U.S. or by a foreign government when the right to use such property is part of a contract to produce articles for sale to these governments. Purpose Minimizes the cost of the articles produced and to encourage the federal government to contract with Washington businesses. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes CTI CTI CTI CTI Local Taxes CTI CTI CTI CTI Repeal of Repealing this exemption 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 CTI CTI CTI Assumptions This exemption impacts fewer than three taxpayers; any impacts are confidential. Data Sources Department of Revenue, Excise tax data Additional Additional Information Information Category: Government Year Enacted: 1976 Primary Beneficiaries: Contractors with the federal and foreign governments Taxpayer Count: Fewer than three Program Inconsistency: None evident JLARC Review: Expedited review completed in 2012 with an upcoming review s