A bill to exempt certain manufacturing and tech startups from B&O tax for the first two years of the company’s existence is scheduled for a public hearing Tuesday morning in the House Technology and Economic Development Committee.

House Bill (HB) 1693, introduced by freshman legislator Rep. Cyrus Habib, exempts certain types of manufacturing and technology companies from having to pay any B&O tax for the first two years of a company’s existence.

This could be a big help to companies in certain types of manufacturing and technology businesses as specified in the legislation.  There are exclusions to “new business” that are also defined in the bill.

Since new businesses tend to struggle their first couple years, there is likely not a large revenue loss to the state if this exemption were put into place.  A new business would still have to pay payroll and other taxes.

There are reporting requirements in the bill that ask for capital expenditures, number of new hires from Washington and from other places, among other information.  You can read the text of the bill here:

http://apps.leg.wa.gov/documents/billdocs/2013-14/Pdf/Bills/House%20Bills/1693.pdf

WTIA supports this bill and will be speaking in favor of the bill at the public hearing.  Having an entrepreneur or someone similar that can speak to the merits of this bill will help this bill’s chances.  State legislators are more sympathetic to business people that come to Olympia to testify than the professionals who are there all the time.

If you would like to speak on behalf of HB 1693 on Tuesday morning in Olympia, please contact Lew McMurran at WTIA, lmcmurran@washingtontechnology.org