Manufacturers Sales and Use Tax Deferral - Eligible Investment Projects

Available to:

Manufacturers constructing eligible investment projects. Applications will be accepted beginning January 1, 2018. The application must be submitted before initiation of construction or acquisition of equipment.

Note: This is a deferral, not an exemption. The recipient must begin paying the deferred taxes in the fifth year after the date certified by the department as the date on which the investment project has been operationally completed.

Qualifying activity:

Construction of an eligible investment project by a manufacturer.

"Eligible investment project" means an investment project for qualified buildings and machinery and equipment on two new, renovated, or expanded manufacturing operations per year, at least one of which must be located east of the crest of the Cascade mountains, and one of which must be located west of the crest of the Cascade mountains. The deferral provided in this section only applies to the state and local sales and use taxes due on the first ten million dollars in costs for qualified buildings and machinery and equipment.

Reporting/documentation:

• Application required.
• Annual Tax Performance Report must be filed electronically by May 31 of the following year in which the project is certified and for the following seven years.
• Electronic filing required.

For questions about the deferral, please call 360-534-1503, option 6, or email DORDeferrals@dor.wa.gov.