Today in Olympia, a bill to extend the state tax incentives for R&D was introduced.  It is HB 1303, which you can find here.

This bill moves the expiration date for the B&O credit and the sales tax deferral out 20 years to Jan. 1, 2035 from Jan. 1, 2015.  A public hearing is tentatively scheduled for Tuesday, Jan. 29 at 10 a.m. in the House Technology and Economic Development Committee.

Passage of this bill will ensure that Washington remains a competitive state vis-a-vis other states and regions.  This bill also ensures that technology companies of all types and sizes are able to rely on a successful tax policy.

The tax incentives for R&D have been in place since 1995.  The state’s technology industries have grown dramatically since then.  According to the Washington Research Council’s study of the technology industry, tech is responsbile for almost 63% of the state’s job growth since 1990 and tech generated tax revenue grew to $2.9 billion in 2011–318% growth since 1990.  You can read the report here.

There is a cap of $2 million on the B&O credit, taken by only 3 companies.  Over $7 billion in R&D was performed in Washington in 2010, which generates substantial economic activity, including hiring well educated professionals and purchasing expensive equipment.

WTIA will be supporting this bill, along with the biotech/life sciences industry and others.  Rep. Jeff Morris, Chair of the House Technology and Economic Development Committee is the prime sponsor of HB 1303.