WAC 240

"To manufacturer."

Tax on manufacturers.

Tax on retailers.

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.

Tax on wholesalers, distributors.

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.

Credits for certain manufacturers.

Persons taxable on multiple activities-Credits.

Excess payment of tax, penalty, or interest-Credit or refund-Payment of judgments for refund.

Manufacturer's new employee tax credits

Manufacturer's new employee tax credits.

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.

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.

Manufacturing, tax credits.

Alternative credit computation formula Seasonal employment manufacturers Revised 2/2/09 See ETA 3102.2009

Alternative credit computation formula -- Seasonal employment manufacturers

Alternative Credit Computation Formula Seasonal Employment Manufacturers - Cancelled effective December 1, 2004 See ETA 2018.

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.

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.

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.

STATUTES -- CONSTRUCTION -- "MUST" -- MEANING. The word "must" in a statute imposes a mandatory duty.

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.

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.

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.