issue area reports | budget and taxation
in housing . Taxing rental income is also unconstitutional and amounts to a double tax on landlords who already pay property taxes . The bill was originally introduced with a rental income tax exemption for landlords participating in a “ rent stabilization ” program , also known as rental control . A later version of the bill proposed a tax on all rental income . Fortunately , the legislation did not make it to the floor for a vote .
tax incentives for manufacturers and employers
HB 2482 semiconductor tax incentives
Passed / AWB Supported sponsor : Rep . Paul Harris , R-Vancouver
This bipartisan legislation makes an important investment in our state ’ s semiconductor manufacturing industry .
The bill extends two tax preferences for semiconductor materials manufacturing and reinstates six expired tax preferences through Jan . 1 , 2034 . Industry leaders say the incentives will help make Washington more competitive in securing some of the billions available for domestic semiconductor manufacturing through the CHIPS and Science Act .
AWB had concerns with a proposed amendment that required companies to reimburse half of the amount of the tax preference to the state if certain conditions are not met , essentially a claw back . We returned to support the bill once that amendment was removed . The final bill passed the House 94-1 and the Senate 47-1 .
HB 1966 manufacturing machinery and equipment tax exemption from reet
Failed / AWB Supported sponsor : Rep . Amy Walen , D-Kirkland
This bill would have exempted manufacturing machinery and equipment from the real estate excise tax ( REET ), helping support our state ’ s manufacturers . Unfortunately , it died in committee this year .
HB 6303 clean manufacturing
Failed / AWB Supported sponsor : Sen . Mark Mullet , D-Issaquah
This proposal would have established a preferential B & O tax for clean technology manufacturing , helping boost Washington ’ s growing clean energy sector . The bill received a hearing in the Senate Business , Financial Services , Gaming and Trade , but failed to gain the traction needed to make it out of committee .
HB 1981 nuclear energy manufacturing
Failed / AWB Supported sponsor : Rep . Stephanie Barnard , R-Pasco
This bill proposed a 10-year preferential business and occupation tax rate of 0.25 % for businesses involved in retailing , wholesaling , manufacturing , and processing nuclear fuel and assemblies . It provides incentives to boost economic development and jobs in the energy sector . Unfortunately , this bill failed to pass out of committee .
HB 1757 tax remittance for farmers
Passed / AWB Supported sponsor : Rep . Chris Corry , R-Yakima
Rep . Larry Springer , D-Kirkland , the House deputy majority leader , serves on the Rules , Finance , Appropriations and Agriculture & Natural Resources committees . Rep . Mike Chapman , D-Port Angeles , chairs the Agriculture & Natural Resources Committee and also serves on the Transportation and Consumer Protection & Business committees .
This successful bill allows eligible farmers to claim a sales and use tax exemption up to $ 10,000 on goods and services purchased . It was introduced last year but did not move forward ; in 2024 , it easily passed both chambers .
Bill considered as part of AWB ’ s voting record
Favorable outcome for Washington businesses
Missed Opportunities
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