The bill ESHB 2482 aims to reinstate and amend tax incentives for semiconductor manufacturing in Washington State, specifically for the establishment of significant semiconductor microchip fabrication facilities. It introduces a new tax rate of 0.275 percent for businesses engaged in manufacturing semiconductor materials, contingent upon the siting and commercial operation of a significant facility by January 1, 2034, with a minimum investment threshold of $500 million. The legislation also includes tax credits and exemptions related to employment and operational requirements, stipulating that businesses must maintain a certain percentage of full employment at the new facility or reimburse the state for tax benefits received if employment levels fall below specified thresholds.

Additionally, the bill provides exemptions from sales and use tax for gases and chemicals used in the manufacturing process, as well as property tax exemptions for machinery and equipment used in semiconductor production. It extends the expiration date for these provisions from January 1, 2024, to January 1, 2034, unless the required conditions are met. The bill also clarifies definitions and requirements related to semiconductor materials and tax preferences, ensuring compliance with existing tax regulations. The act is deemed necessary for the immediate preservation of public peace, health, or safety, and takes effect immediately upon passage.

Statutes affected:
Original Bill: 82.04.2404, 82.08.9651, 82.12.9651
Substitute Bill: 82.04.2404, 82.08.9651, 82.12.9651
Engrossed Substitute: 82.04.2404, 82.08.9651, 82.12.9651
Bill as Passed Legislature: 82.04.2404, 82.08.9651, 82.12.9651
Session Law: 82.04.2404, 82.08.9651, 82.12.9651