Businesses focused on manufacturing, R&D, or computer-related services that locate in designated 'distressed areas' (including the Tacoma Community Empowerment Zone) can received a $2,000 credit for each new qualified employment position with annual wages of $40,000 or less; or a credit of $4,000 for each new employment position with wages and benefits over $40,000 annually. The credit is taken against the B&O tax for each new employment position filled and maintained by qualified businesses located in eligible areas.
For a full-time employment position to be eligible for credit, it must be requested by application before the new position is filled. A new application must be submitted to the Department of Revenue each calendar year that a 15% average increase over the previous year in the number of positions is anticipated. New full-time employment positions must be maintained for 12 consecutive months.