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WAC 24003 Tax incentives for high technology businesses.
SOURCE DOCUMENT DETER. NO DATE OF ISSUE DESCRIPTION
WAC: 458-20-24003 10/13/2010 WAC 458-20-24003 explains the tax incentive programs available for persons engaged in qualified research and development or pilot scale manufacturing in five high technology areas.   These incentive programs include:

The sales and use tax deferral program provided by chapter 82.63 RCW; and
The business and occupation tax credit program provided by RCW 82.04.4452. 
This rule has been amended to recognize E2SHB 1597 (chapter 106, Laws of 2010).   This legislation establishes that only those applications for the high technology deferral that have been approved are not confidential and subject to public disclosure. 

  458-20-24003 03/01/10 WAC 458-20-24003(Rule 24003) explains the tax incentive programs available for persons engaged in qualified research and development or pilot scale manufacturing in five high technology areas.   These incentive programs include:

The sales and use tax deferral program provided by chapter 82.63 RCW; and
The business and occupation tax credit program provided by RCW 82.04.4452.
The Department amended Rule 24003 to recognize SB 5909 (chapter 268, Laws of 2009).   This legislation establishes that under certain circumstances multiple qualified buildings leased to the same person are eligible for the deferral program.
  458-20-24003   06/30/2003 Tax incentives for high technology businesses. Updated 08/31/06.
RCW: 82.04.0552   2005 Credit -- Research and development spending.
  ESHB 3303   2008 B&O tax credit for polysilicon manufacturers (preproduction development expenditures)
ETA: 3051.2009 2/2/09 Business and occupation tax credit on research and development spending for staffing companies
  2021.04.24003 1/4/05 Business and Occupation Tax Credit on Research and Development Spending for Staffing Companies Revised 2/2/09 See ETA 3051.2009
INDUSTRY GUIDES:      
SPECIAL NOTICES:      
Subject Title Reference:      
High Technology 06/11/2014 High Technology B&O Tax Credit for Qualified R&D Expenditures and the High Technology Sales and Use Tax Deferral Set to Expire
Incentives 06/11/2014 High Technology B&O Tax Credit for Qualified R&D Expenditures and the High Technology Sales and Use Tax Deferral Set to Expire
Fruit & Vegetable Processors 03/02/2012 Failure to File Annual Tax Incentive Survey Results in Loss of Tax Incentive
Incentives 03/02/2012 Failure to File Annual Tax Incentive Survey Results in Loss of Tax Incentive
High Technology 09/15/2011 High Tech B&O Tax Credit Donation
Incentives 09/15/2011 High Tech B&O Tax Credit Donation
High Technology/ Incentives 06/01/2006 Biotechnology Product & Medical Device Manufacturers - Tax Incentives (Cross reference 136)
High Technology 06/21/2005 High Technology Business and Occupation Tax Credit Changes
Annual Survey/ High Technology/ Rural County Incentives (Annual Survey) 12/17/2004 Annual Survey Special Notice
  08/09/2004 Sales/Use Tax Deferral/Waiver Program & B&O Tax Credit Program Extended and Revised Small Business Grants Exempted from B&O Tax
High Technology/ Incentives 08/09/2004 High Technology Business Tax Incentives (Issued Feb 2005)
  07/22/1998 High Technology B&O Tax Credit Rate Change
     
DIRECTIVE:    
         
     
RPM:    
         
     
WTD: 23 WTD 280 03-0254   B&0 TAX RESEARCH AND DEVELOPMENT ("R&D) EXEMPTION DEVELOPMENT OF NEW DRUGS.Payments which a pharmaceutical company gives a physician for treating patients and recording the results as part of new drug trials do not qualify for the B&O tax exemption allowed for R&D.Taxpayers activities are neither the discovering technological information nor translating technological information into new or improved products, processes, techniques, formulas, inventions, or software.
  24 WTD 187 04-0138E   B&O TAX -- R&D CREDIT -- ENVIRONMENTAL CLEANUP.All environmental cleanup activities are not necessarily qualified research and development (R&D).While non-routine activities, which translate technological activities into new or improved processes, constitute qualified R&D, the process becomes routine when repeated to meet specific contractual "deliverables" (e.g. cleaning up a specific area).These routine cleanup activities are not eligible for the credit.
  26 WTD 206 04-0180E   RCW 82.04.4452:R & D B&O TAX CREDIT COMPUTATION PAYMENTS TO SUBCONTRACTORS. The R&D tax credit can be computed using either the expenditure or compensation method, not a combination of both methods.Taxpayers using the expenditure method must exclude payments to subcontractors.
  26 WTD 241 07-0115   RCW 82.32.600(1): HIGH TECHNOLOGY B&O TAX CREDIT PROCEDURAL REQUIREMENTS FILING OF ANNUAL SURVEY AND TAX RETURNS ELECTRONICALLY.Entitlement to the High Technology B&O tax credit requires taxpayers to file annual surveys and tax returns electronically. The Department correctly disallowed the credit when a taxpayer failed to meet that procedural requirement.The fact that the taxpayer may not have received a courtesy call from the Department reminding it of the requirement does not relieve the taxpayer from that requirement.
  27 WTD 136 07-0363   RULE 24003; RCW 82.04.4452 B&O TAX -- HIGH TECHNOLOGY CREDIT.Real estate rental expenses and patent attorney fees are not qualified research and development expenditures under RCW 82.04.4452 and Rule 24003.
  32 WTD 35 11-0052 02/27/2013 RULE 24003(4)(g)(i); RCW 82.63.010(13): RETAIL SALES AND USE TAX –
HIGH TECHNOLOGY DEFERRAL –-PROTOTYPES. Ingredients and components of prototypes are not “qualified machinery and equipment” for purposes of the High Technology Tax Deferral, even though the prototypes may be reasonable and necessary in the development of a qualifying product.
  32 WTD 35 11-0052 02/27/2013 RCW 82.08.02565(2)(c)(viii); ETA 3126.2009: RETAIL SALES AND USE
TAX -- M&E EXEMPTION – PROTOTYPES. Ingredients and components of prototypes do not qualify as exempt M&E, even though the prototypes may be “integral” in the development of a new product.
  33 WTD 1 13-0037 02/03/2014 RULE 24003; RCW 82.04.4452: RESEARCH AND DEVELOPMENT CREDIT – CALCULATION – APPORTIONMENT OF INCOME. Compensation for conducting qualified R&D equals 100% of the amount Taxpayer received for conducting qualified R&D in Washington, regardless of whether some of the income from that activity is apportioned outside of Washington.
  33 WTD 171 13-0358 05/31/2014 RULE 24003; RCW 82.04.4452, RCW 82.63.010: HIGH TECH R&D CREDIT – QUALIFIED RESEARCH –AFFILIATE – CIMLINC. Two affiliated corporations could not claim the high technology R&D credit for the same research performed by one of the affiliates.
         
OTHER: