Aerospace businesses would get excise tax relief

OLYMPIA – The state Senate today approved legislation to provide excise tax relief for aerospace product development businesses.

In 2003, the Legislature passed a major tax incentive for aerospace businesses, and 25 companies, including 13 in Snohomish County, were inadvertently left out. Senate Bill 6168, sponsored by Sen. Jean Berkey, D-Everett, corrects that oversight.

“Our regional economy depends on our ability to attract and keep high-tech companies in Snohomish County,” Berkey said. “This bill simply closes the loop for those companies left out of the 2003 legislation.”

Berkey explained the measure provides sales and use tax exemptions for computer hardware and software, including installation. It also encourages, through B&O tax credits, the construction of new facilities and the expansion or renovation of existing ones.

“We’re fortunate to be the high-tech hub for Washington’s aerospace industry,” Berkey said. “Boeing and its many suppliers and related companies extend deep into the fabric of our community, and we want to keep them there.”

SB 6168 was approved by a 42-4 vote, and now goes to the House of Representatives for further consideration. The Legislature is scheduled to adjourn April 22.

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