Semiconductor materials manufacturing - gases and chemicals

From the 2024 DOR Tax Exemption Study

82.08.9651; 82.12.9651 - Semiconductor materials manufacturing - gases and chemicals Description Sales and use taxes are exempt to manufacturers and processors for hire on purchases of gases and chemicals used to produce semiconductor materials. Manufacturers of silicon solar wafers, silicon solar cells, thin film solar devices, solar grade silicon, or compound semiconductor solar wafers also qualify for this exemption. A person claiming the exemption under this section must file a complete annual tax performance report. Any person who has claimed the exemption must reimburse the department for 50% of the amount of the tax exemption, if the number of persons employed by the person claiming the tax preference is less than 90% of the person's three-year employment average for the three years immediately preceding the year in which the exemption is claimed. This exemption expires December 1, 2028. Purpose To encourages the retention of existing persons who manufacture semiconductor in Washington and attracts similar businesses to the state. 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