Manufacturing tax exemption passes House
OLYMPIA--A bill providing a sales tax and use exemption for manufacturing equipment used for maintenance, improvements, or research and development, passed the House last week, 92-4.
"Our state is going to get great mileage out of this," said Rep. Dave Schmidt, R-Bothell, who voted for the measure. "We created new jobs last year with a similar measure. We're telling manufacturers this is the place to set up shop."
In the current biennium, the exemption could return $32.6 million to Washington manufacturers that invest in new equipment.
"Manufacturing businesses are an important source of family wage jobs," said Rep. Mike Sherstad, R-Bothell, co-sponsor of the bill. "Our state tax structure should encourage employers to grow and succeed, instead of penalizing them by taxing their investment in our economy."
This bill now moves to the Senate. If approved and signed, it would take effect July 1.
Rep. Ian Elliot, R-Bothell, who also voted in favor of the bill, added that "this could be a real shot in the arm for biotech or medical technology firms, which are well-represented in my district."