Did your business participate in one of the below credits, exemptions, deferrals or preferential business & occupation (B&O) tax rates in 2016 offered by the state of Washington?  If yes, you may have a responsibility to file an Annual Tax Incentive Survey or an Annual Tax Incentive Report.  The survey or report must be filed electronically with the Department of Revenue by May 31, 2017.  You may file the survey or report by logging into your Department of Revenue E-file account.

If you participated in any of the following incentive programs, you are required to file an Annual Tax Incentive Survey:

Credits Seafood Product Manufacturers B&O Tax Exemption
Aerospace Preproduction Expenditures B&O Tax Credit (Must also file Annual Tax Incentive Report) Semiconductor Sales & Use Tax Exemption (Expires December 1, 2018)
Aerospace Property & Leasehold Excise Taxes B&O Tax Credit (Must also file Annual Tax Incentive Report) Solar Energy Systems Manufacturers or Processors Sales & Use Tax Exemption (Expires December 1, 2018)
Aluminum Smelters Property Tax B&O Tax Credit (Must also file Annual Tax Incentive Report) Deferrals
Aluminum Smelters Sales & Use Tax Credit Biotechnology & Medical Device Manufacturing Sales & Use Tax Deferral (Expired January 1, 2017)
Aluminum Smelters B&O Tax Credit for Sales Tax on Materials Used in Aluminum Smelter (Must also file Annual Tax Incentive Report) Cold Storage Warehouse Sales & Use Tax Deferral
Customized Employment Training Credit (Program expires July 1, 2017) Dairy Product Manufacturers Sales & Use Tax Deferral
B&O and PUT Credit for Hiring Unemployed Veterans Fruit and Vegetable Processors Sales & Use Tax Deferral
Deductions & Exemptions High Technology Sales & Use Tax Deferral (Expired January 1, 2015)*
Aerospace Computer, Software, and Peripherals Sales & Use Tax Exemption High Unemployment County Sales & Use Tax Deferral
Aerospace FAR Part 145 Repair Station Sales & Use Tax Exemption(Must also file Annual Tax Incentive Report) Manufacturer’s Sales & Use Tax Deferral (No longer taking applications for program.  All projects allowed by statute were approved as of March 2016)
Aerospace Leasehold Excise Tax Exemption for Superefficient Airplane Manufacturers Rural County Sales & Use Tax Deferral
Aerospace Manufacturing Site Sales & Use Tax Exemption Seafood Product Manufacturers Sales & Use Tax Deferral
Aerospace Personal Property Tax Exemption for Superefficient Airplane Manufacturers Reduced Rates
Agricultural Crop Protection Products Aerospace FAR Part 145 Repair Stations Reduced B&O Tax Rate (Must also file Annual Tax Incentive Report)
Aluminum Smelters Use Tax Exemption for Compressed/Liquefied Natural Gas (Must also file Annual Tax Incentive Report) Aerospace Manufacturers Reduced B&O Tax Rates
Dairy Products Manufacturers’’ B&O Tax Deduction Aerospace Product Development Reduced B&O Tax Rate
Data Center Sales & Use Tax Exemption (Must also file Annual Tax Incentive Report) Aluminum Smelters Reduced B&O Tax Rates (Must also file Annual Tax Incentive Report)
Fruit and Vegetable Businesses B&O Tax Exemption Solar Energy Systems Manufacturers or Wholesalers Reduced B&O Rates (Expires June 30, 2017.  Must also file Annual Tax Incentive Report)
Hog Fuel Sales & Use Tax Exemption Timber Industry B&O Reduced Rates
Public Research University Machinery and Equipment Sales & Use Tax Exemption
Renewable Energy Equipment Sales & Use Tax Exemption

 

If you participated in any of the following incentive programs, you are required to file an Annual Tax Incentive Report:

Aerospace B&O tax credit for property taxes for certain aluminum smelter property
Reduced Business and Occupation (B&O) tax rate for FAR Part 145 certified repair stations Sales and use tax exemption for certain property used at aluminum smelters
Sales & Use Tax Exemption for FAR Part 145 certified repair stations Use tax exemption for the use of natural gas
Reduced B&O tax rate for manufacturers and processors for hire of commercial airplanes and component parts Semiconductor Cluster Incentives
B&O tax credit or exemptions for property and leasehold taxes Reduced B&O tax rate for manufacturers and processing for hire semiconductor materials (Expires December 1, 2018)
B&O tax credit for Aerospace product development spending Sales and use tax exemption for gases and chemicals used by a manufacturer or processor for hire in the production of semiconductor materials (Expires December 1, 2018)
Sales and use tax exemption for labor, services, and personal property related to manufacturing of commercial airplanes Other
Reduced B&O tax rate for Aerospace product development for others Sales and use tax exemption on the purchase of eligible server equipment and power infrastructure for use in eligible data centers
B&O tax credit for Aerospace product development spending by non-manufacturers Public utility tax exemption for certain sales of electricity to electrolytic processing businesses
Aluminum Smelter B&O tax deduction for amounts received for providing mental health services
Reduced B&O tax rate for aluminum smelters Reduced B&O tax rate for printing and/or publishing newspapers

 

If you fail to file the survey or report by the due date, your tax incentive amount for the tax year may be disallowed and the amount of the tax reduced, credited, or exempted will be due immediately.  In the case of failure to file a survey for deferral, a portion of deferred taxes will be due immediately.  You must continue to file annual tax incentive surveys or reports even if the incentive claimed has expired.

All surveys and reports must be filed electronically.  The Department of Revenue may allow you to file an extension of time to file the survey as long as you request the extension prior to the due date of May 31, 2017.  Failure to file the survey or report for a tax incentive claimed for the previous year will result in a 35 percent penalty of the amount of the tax preference claimed, and an additional 15 percent of the amount of the tax preference claimed for the previous calendar year if the person has previously been assessed.

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