Semiconductor Materials Manufacturing After $1 Billion Investment - Machinery and Equipment

From the 2024 DOR Tax Exemption Study

84.36.645 - Semiconductor Materials Manufacturing After $1 Billion Investment - Machinery and Equipment Description Machinery and equipment exempt from sales and use taxes used in manufacturing semiconductor materials is exempt from property tax. The exemption is contingent upon the siting of a significant semiconductor fabrication facility with an investment of at least $1 billion in buildings and equipment in Washington. The exemption expires January 1, 2024, unless a signed contract for construction of a significant fabrication facility occurs before the expiration. Purpose Encourages the retention of existing semiconductor businesses in Washington and attracts similar businesses to Washington. Taxpayer ($ 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 a property tax exemption would not increase state revenues. A repeal exemption shifts the state property tax to the currently exempt taxpayers and reduces the tax burden of other taxpayers. It may decrease the local rate and possibly result in local taxing districts at their statutory maximum rate experiencing a revenue incre