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Business and occupation tax credit increase for small businesses
Intended audience: Small businesses.
Beginning with filing periods that start on or after January 1, 2023, the business and occupation (B&O) tax credit for small businesses increases.
What changed?
For businesses that report 50% or more of their income under Service and Other Activities, Gambling Contests of Chance, For Profit Hospitals, and/or Scientific R&D, the maximum credit increases to $160 per month.
For all other B&O tax classifications, the maximum credit increases to $55 per month.
Equitable Access to Credit Program B&O tax credit
Intended audience: Community development financial institutions such as community development banks, credit unions, and venture capital funds.
A person who makes contributions to the Equitable Access to Credit Program administered by the Department of Commerce is eligible for a business and occupation (B&O) tax credit, subject to certain limitations.
What is this tax credit?
A person who makes contributions to the Equitable Access to Credit Program can claim this B&O tax credit. You do not need to apply for this B&O tax credit.
Real estate excise tax (REET) exemption for transfers of real property to be used for low-income housing
Intended audience: Low-income housing providers.
Effective January 1, 2023, qualified transfers of real property to be used as low-income housing are exempt from real estate excise tax (REET).
Qualifications
A sale or transfer of real property qualifies for an exemption from REET if all the following qualifications are met:
Reporting salmon recovery grants
Intended audience: Nonprofit organizations that receive salmon recovery grants.
Effective April 26, 2021, salmon recovery grants received by nonprofit organizations from qualifying grantors are deductible from business and occupation (B&O) tax and retail sales tax. Nonprofit organization has the same meaning as in RCW 82.04.3651.
Who is a qualifying grantor?
To qualify for exemption, the grants must be received directly from one of the following sources:
Ride-share vehicles
Intended audience: Public transportation agencies, major employers, and employees of major employers purchasing rideshare vehicles, sellers of such vehicles, and ride-share operators.
Beginning Sept. 1, 2021, the law provides new requirements for a sales and use tax exemption on purchases of vehicles to be used in certain ride-share programs, and broadens certain definitions. This Special Notice focuses on the sales and use tax exemptions for purchases of vehicles to be used in in certain ride-share programs.
Plastic bag ban and charges on other reusable bags
Intended audience: Retailers who provide carryout plastic or paper bags to their customers.
Effective Jan. 1, 2021 there is a ban on single use plastic and non-recycled bags, and a charge on the use of certain paper and plastic bags. Note: Implementation of this legislation was delayed until Oct. 1, 2021 by the Governor’s proclamation.
Main Street Tax Credit Program
Intended audience: Registered businesses or persons contributing to a Main Street Organization.
Washington law provides a credit against the business and occupation tax (B&O) and the public utility tax (PUT) for approved contributions that are made by a business to a Main Street Organization or the Main Street Trust Fund. Effective Oct. 1, 2021, several changes are made to the Main Street Tax Credit Program.
