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%.
- $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.
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
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
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.
- 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.
- 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