Filed under: Tax Compliance & Planning

Taxpayers taking advantage of any one of the available State of Washington tax incentives – including tax deferrals, reduced B&O tax rates, exemptions, and credits – may be required to file an Annual Report or Annual Survey.

Some incentives require that both the report and the survey be filed, while other programs do not have a reporting requirement.

For tax incentives taken in 2018, the due date for the Annual Report and Annual Survey is May 31, 2019.

There are over 50 different tax incentive programs in Washington. A partial list of common incentives includes:

  • High Technology B&O Tax Credit for R&D Spending
  • High Technology Sales & Use Tax Deferral/Waiver
  • Biotechnology & Medical Device Manufacturing Sales & Use Tax Deferral/Waiver
  • B&O Tax Exemption for Manufacturing Fresh Fruit and Vegetables, Dairy, and Seafood Products
  • Aerospace Industry Incentives
  • Incentives for Manufacturers and Retail Sellers/Distributors of Biofuels
  • Renewable Energy/Green Industry Incentives
  • Deduction for Government Funded Payments for Mental Health Services Provided by Non-Profit Organizations

Failure to file the annual report/survey by the due date will result in immediate repayment of 35 percent of the tax incentive claimed and an additional 15 percent of the tax incentive if the taxpayer has filed previous years’ reports/surveys late.

The Department of Revenue requires that the report/survey be filed electronically using the Department’s electronic filing system, accessible from its website. An extension is available, but it must be granted prior to the May 31 filing deadline.

Please contact our SALT team at info@clarknuber.com if you have questions about whether these requirements apply to your business or organization, or if you’d like to find out if you are missing out on any available incentives.

© Clark Nuber PS, 2019. All Rights Reserved

This article or blog contains general information only and should not be construed as accounting, business, financial, investment, legal, tax, or other professional advice or services. Before making any decision or taking any action, you should engage a qualified professional advisor.