The bill seeks to reinstate and amend tax incentives for semiconductor manufacturing in Washington State, focusing on the establishment of significant microchip fabrication facilities. It introduces a new tax rate of 0.275% for businesses manufacturing semiconductor materials, contingent upon the operation of a significant facility by January 1, 2034. The legislation also includes various tax credits and exemptions related to employment and construction, with specific conditions for maintaining employment levels. Key amendments to existing laws include adjusting the minimum investment threshold to $1 billion and extending the expiration date for certain provisions to January 1, 2034.

Additionally, the bill establishes exemptions from property taxation for semiconductor materials, defining them as items like silicon crystals and wafers. Individuals seeking these exemptions must apply to the county assessor and file annual tax performance reports. The bill also sets a preferential tax rate for semiconductor manufacturers and processors, with reimbursement requirements if employment levels fall below a specified threshold. Furthermore, it exempts sales tax on gases and chemicals used in semiconductor production, with similar reimbursement conditions. The act is deemed necessary for the immediate preservation of public peace, health, or safety, and takes effect immediately.

Statutes affected:
Original Bill: 82.04.2404, 82.08.9651, 82.12.9651