New state law extends tax breaks for data centers, food processors and craft distillers

Gov. Gregoire signed a bill May 2 modifying several state tax exemptions.

Engrossed Senate Bill 6635 extends the sales and use tax exemption to eligible data centers that commence construction prior to July 1, 2016.

The exemption is also extended for eligible replacement-server equipment placed in new data centers and for qualifying tenants until April 1, 2020.

Among other modifications, the bill also extends the B&O tax exemptions for processing of fruits, vegetables, dairy and seafood to July 1, 2015.

“Data centers and the agricultural processing industry are two large drivers of jobs in our state, especially in central Washington, where more than 1,000 family-wage construction jobs have already been created,” said Sen. Holmquist Newbry of Moses Lake, who serves on the Senate Economic Development, Trade and Innovation Committee and is Republican leader on the Senate Labor, Commerce and Consumer Protection Committee. “Our agricultural processors alone generated 17 billion dollars in 2011 and have been the backbone of our state’s economy throughout its history.”

Craft distilleries, a relatively new industry in Washington, are exempted from a license issuance fee equal to 17 percent of all spirits sales revenues.

“I look forward to witnessing the state’s young craft distillery industry evolve and achieve its full potential in Washington’s economy,” Newbry said.

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