Washington: New Exemptions for Aerospace Industry
- Jul 15, 2014 | Gail Cole
New and extended aerospace tax preferences have been announced by the Washington State Department of Revenue. They took effect July 9, 2014.
New sales and use tax exemption
Washington now provides a retail sales and use tax exemption for the construction of new facilities used to manufacture the following:
- Commercial airplanes
- Commercial airplane fuselages
- Commercial airplane wings
Charges for labor and services involved in the construction of new buildings, materials used during the course of construction, and labor and services “rendered in respect to installing building fixtures not otherwise eligible for the exemption” are eligible for the exemption.
Qualifying buyers must present sellers with a “Buyer’s Retail Sales Tax Exemption Certificate” at the time of purchase in order for the exemption to be valid.
Tax incentives extended
In addition to the new exemptions, existing aerospace tax incentives previously set to expire on June 30, 2024, are extended to June 30, 2040.
According to the DOR, the new exemption and the extended tax incentives “were contingent upon the siting of a significant commercial airplane manufacturing program in Washington.” Hmm, could that be Boeing? In February, Boeing announced that it would construct wings for the new 777x near Everett, Washington. Now it has seems that “the contingency requirements (for the tax incentives) have been satisfied.”
Additional information is available on a special notice posted on the Washington Department of Revenue website.