“ Part of the work we undertake fuels expansion,” said Yoo.“ Small business owners often face a financial conundrum when starting or growing an enterprise. Our support is meant to help offset their expenses.” These include specific ways to encourage investment in new technologies, equipment or energy sources, building new manufacturing facilities or hiring workers in rural communities.
Aerospace Incentives
Megan Hartford, sales manager, greets a customer at the Farnborough Air Show.
Washington State offers a specialized range of incentives that are geared toward aviation and aerospace because these are high-growth industries within our sector-based strategy for economic prosperity. The tax-based incentives include:
Tax credit for preproduction development expenditures: This is a B & O tax credit available to manufacturers and processors for hire of commercial airplanes or component parts of commercial airplanes.
Tax credit for taxes paid on business facilities: This is also a B & O tax credit, equal to the property taxes paid on new buildings, associated land and the increased value of renovated buildings. A B & O tax credit is also available for personal property tax paid on machinery and equipment and computer equipment and peripherals
Tax exemption for new facilities: This tax exemption is for those who build in order to manufacture commercial airplanes, commercial airplane fuselages, and commercial airplane wings.
The grand opening of Lafarge & Egge’ s new state-of-the-art manufacturing facility in Everett, WA. Part of the construction funding came from a 2024 Commerce Evergreen Manufacturing Growth Grant, supporting expansion of Washington’ s key industries, including aerospace, maritime, clean tech, and more.
Tax exemption for computer hardware, software, and peripherals: This tax exemption is for manufacturers of commercial airplanes or component parts of commercial airplanes, or product developers and a handful of others. The exemptions apply to items used in the development, design, and engineering of aerospace products or in providing aerospace services.
APRIL | MAY 2025 ISSUE NO. 44 39