Resources - Credits, Deductions, & Tax Exemptions

Multiple Activities Tax Credit (MATC)

This provides a sales and use tax deferral for eligible investment projects of at least $2 million in clean technology manufacturing, renewable energy storage, and clean fuel production. The deferral applies to qualifying construction, equipment, labor, and services incorporated into the eligible project.

Washington Department of Revenue

The Multiple Activities Tax Credit (MATC) prevents businesses from paying B&O tax twice on the same product when they engage in multiple taxable activities. The credit is subject to requirements, including that the taxes are actually paid and apply to the same products or ingredients.

Sales and Use Tax Deferral for Clean Energy Investment Projects

Washington Department of Revenue

Manufacturer’s Sales/Use Tax Exemption for Machinery and Equipment (M&E)

This code provides a B&O tax exemption for qualifying raw, raw frozen, or raw salted seafood products that remain in that state after manufacturing and are sold to customers who transport them outside Washington.

Washington Department of Revenue

Electric Vessel & Marine Batteries and Shoreside Infrastructure Sales/Use Tax Exemption

Washington Department of Revenue

Beginning August 1, 2019, this law provides a sales and use tax exemption for:

  • New battery-powered electric marine propulsion systems with continuous power greater than 15 kW

  • New vessels equipped with battery-powered electric marine propulsion systems with continuous power greater than 15 kW

Tax Incentive Programs

Washington Department of Revenue

Many businesses may qualify for tax incentives offered by Washington. These incentives include deferrals, reduced B&O rates, exemptions, and credits. Browse tax incentive programs here by industry and category.

The Manufacturers’ Sales and Use Tax Exemption provides a sales and use tax exemption for qualifying machinery, equipment, and related services used in manufacturing, research and development, and certain testing operations.

Business & Occupation Tax Exemption for Manufacturers and Sellers of Seafood Products

Washington Department of Revenue