Manufacturing deferral in designated counties

From the 2024 DOR Tax Exemption Study

82.94.020; 82.94.030 - Manufacturing deferral in designated counties Description A sales and use taxes deferral is provided for qualified investment projects located in counties with a population less than 650,000. The total deferral amount per person is limited to $400,000. The deferred taxes need not be repaid if the recipient utilizes the qualified project as a manufacturing or research and development operation for the seven calendar years following the project completion date. If the project is not completed within five years or not utilized for manufacturing or research and development for seven years, then a portion of the deferred taxes are due immediately. Purpose To create employment opportunities and generally spur economic development in counties located outside of the central Puget Sound region. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $2.070 $2.052 $2.066 $2.072 Local Taxes $0.678 $0.672 $0.677 $0.679 Repeal of Repealing this deferral would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $1.881 $2.066 $2.072 Local Taxes $0.000 $0.616 $0.677 $0