Economic Development

CEZ Incentive (currently unavailable)

This Washington State incentive was not reauthorized in the 2021 Legislative Session and it is uncertain if it will be reauthorized in the future. Please contact Diana Divens diana.divens@commerce.wa.gov with Washington State Department of Commerce with questions.

Community Empowerment Zone

Community Empowerment Zone (CEZ) Incentives

B&O credit for new employees in manufacturing and research & development in rural counties
Available to: Manufacturers, R&D laboratories, and commercial testing facilities located in rural counties or within a CEZ.
Qualifying activity: Creating new employment positions/increase instate employment by 15%.
Credit amount:

$2,000 credit/position with annual wages/benefits of $40,000 or less; or
$4,000 credit/position with wages/benefits of more than $40,000 annually.

Reporting/documentation:

Rural Area Application for B&O Tax Credit on New Employees must be filed within 90 days of filling the first qualified position.
Annual Letter/Report due by the last day of the month immediately following the end of the four consecutive full calendar quarter period for which a credit is earned. Mailed by Department to applicants.
Electronic filing not required.
List of Rural Counties and CEZs

Purchases of server equipment and power infrastructure for use in eligible data centers - sales/use tax exemption
Attention:The Department is currently accepting applications for this program. Please see the Special Notice titled Data center exemption and application process for details.
Available to: The owner—and tenants—of an eligible data center that has a combined square footage of at least 100,000 square feet and is located in a rural county.

To qualify the data center must have a building permit to construct, renovate, or expand the data center issued during one of the following periods:

April 1, 2010 to June 30, 2011
April 1, 2012 to June 30, 2015
July 1, 2015 to June 30, 2025

Qualifying activity:
Sales/use tax exemption on:

purchases of eligible server equipment and labor and services to install server equipment, in an eligible data center
purchases of eligible power infrastructure, and labor and services to construct, install, repair, alter, or improve eligible power infrastructure

Application process:

Review the List of Rural Counties for eligibility.
Submit the Application for Sales Tax Exemption for Purchases by Data Centers before purchasing server equipment or power infrastructure.

Approval and reporting:

If approved, the Department will issue a Certificate for Sales Tax Exemption for Purchases by Data Centers.
Once approved, you must submit the Annual Tax Performance Report by May 31st of the year following the year.

Sales & use tax deferral/waiver for corporate headquarters locating in community empowerment zone
Available to: Business with corporate headquarters locating in a CEZ.

Qualifying activity:

locate within a CEZ
invest at least $30 million in qualified buildings, tangible personal property, and fixtures, etc, including labor and planning
employ at least 300 employees, each who must earn at least the annual average wage for the state for that year
meet the definition of corporate headquarters as defined in RCW 82.82.010.

Reporting/documentation:

Corporate Headquarters Application for Sales and Use Tax Deferral can be made at any time prior to completion of construction of a qualified building or buildings, but tax liability incurred prior to the department's receipt of an application may not be deferred.
All businesses must maintain a qualified activity at the site of the investment project for the year in which the investment project is certified operationally complete plus seven additional years.
Annual Tax Performance Report must be filed by May 31st of the following year in which the project is certified and for the following seven years.
Electronic filing of all documents required.
List of CEZs