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WAC 240 Manufacturer's new employee tax credits -- Applications filed after June 30, 2010.
WAC: 458-20-240   08/16/1988 Manufacturing, tax credits.
      09/15/2001 Manufacturer's new employee tax credits
      01/10/2005 Manufacturer's new employee tax credits.
  458-20-240 11/09/10 Manufacturer's new employee tax credits-Applications filed after June 30, 2010 The Department is amending WAC 458-20-240 (Rule 240) and adopting a new WAC 458-240A (Rule 240A) to explain the eligibility requirements and application procedure for the manufacturer’s new employee tax.  Rule 240 is amended to recognize HB 3014 (chapter 16, Laws of 2010, 1st Special Session).  This legislation amended the definition of a “manufacturer” and “research and development” for purposes of the new employee tax credits.  Rule 240 is also being amended to recognize ESSHB 1597 (chapter 26, Laws of 2010), which clarified that applications that are not approved by the Department cannot be disclosed.  Rule 240 will now apply only to those applications filed after June 30, 2010.

The Department incorporated the information contained in the previous Rule 240 into a new Rule 240A.  Rule 240A retains the information necessary for those applications that were filed prior to July 1, 2010.  The information incorporated into Rule 240A is necessary until the statute of limitation period for assessments and non claim period for refunds has run.

  458-20-240 07/08/2015 New Employee B&O Credit. Rule 240 explains business and occupation (B&O) tax credits available to certain persons engaged in manufacturing and research and development activities. These credits are intended to stimulate the economy by creating employment opportunities in specific rural counties and community empowerment zones of this state. Incorporate legislation pertaining to the criteria of eligibility for businesses applying for a B&O tax credit under chapter 82.62 RCW; Clarify application requirements, hiring requirements, and reporting requirements; and Reorganize the definition of eligible business project by enumerating each of the requirements.

RCW: 82.04.120   1975 "To manufacturer."
  82.04.240   1981 Tax on manufacturers.
  82.04.260   1975 Tax on buyers, wholesalers, manufacturers, and processors of various foods and by-products-Research and development organizations-Nuclear fuel assemblies-Travel agents-Certain inter-national activities-Stevedoring and associated activities-Low-level waste disposers-Insurance agents, brokers, and solicitors-Hospitals.
  82.04.280   1975 Tax on printers, publishers, highway contractors, extracting or processing for hire, cold storage warehouse or storage warehouse operation, insurance general agents, radio and television broadcasting, consumer as defined in RCW 82. 04. 190(6)-Cold storage warehouse defined-storage warehouse defined Periodical or magazine defined.
  82.04.250   1971 Tax on retailers.
  82.04.270   1971 Tax on wholesalers, distributors.
  82.04.435   1971 Credits for certain manufacturers.
  82.04.440   1981 Persons taxable on multiple activities-Credits.
  82.32.060   1990 Excess payment of tax, penalty, or interest-Credit or refund-Payment of judgments for refund.
  3102.2009 2/2/09 Alternative credit computation formula -- Seasonal employment manufacturers
  535.04.240 8/22/86 Alternative Credit Computation Formula Seasonal Employment Manufacturers  -  Cancelled effective December 1, 2004 See ETA 2018.
  2018.04.240 11/8/04 Alternative credit computation formula Seasonal employment manufacturers Revised 2/2/09 See ETA 3102.2009
RPM: NONE      
WTD: 2 WTD 453 87-104   B&O TAX -- CREDITS -- NEW EMPLOYEES -- ELIGIBLE AREA -- APPLICATION. A business meeting the requirements of chapter 82.62, which allows B&O tax credits for hiring the unemployed in eligible areas, must apply for the tax credits prior to hiring the new employees.
  2 WTD 453 87-104   STATUTES -- CONSTRUCTION -- "MUST" -- MEANING. The word "must" in a statute imposes a mandatory duty.
  2 WTD 453 87-104   B&O TAXES -- CREDITS -- GROSS INCOME OF THE BUSINESS -- HARDSHIP. The Department has no discretion to grant B&O tax credits to a business who failed to make a timely application, even though the business is operating at a loss and needs the credits to be able to retain the new employees.
  7 WTD 345 89-265   B&O TAX CREDITS -- NEW HIRING OF EMPLOYEES -- APPLICATION. Application for the B&O tax credit for hiring new employees must be made before hiring begins in order to take the credit. Applications cannot be made retroactively.
  17 WTD 112 97-236   B&O TAX CREDITS -- MANUFACTURING -- DISTRESSED AREAS -- INTERNET SERVICES.Merely providing Internet services, such as creating Web pages, without producing tangible personal property for sale, or for commercial or industrial use does not qualify a person for the B&O tax credits program for distressed areas.
  19 WTD 719 00-033   B&O TAX -- CREDIT -- MANUFACTURERS IN DISTRESSED AREAS -- NEW HIRES – LONGEVITY.To retain eligibility for the B&O tax credit for new hires at a facility in a distressed area, a manufacturer must keep the new positions filled for a period of twelve consecutive months.Additionally, its new hires must cause its employment level for the tax year to exceed its employment level for the previous tax year by 15 percent.
  22 WTD 100 02-0179   B&O TAX -- NEW EMPLOYEE TAX CREDIT -- COMPUTATION.Employment positions filled prior to the credit application date are ineligible for the new employee tax credit, but are used to determine whether the 15% threshold is met.