WASHINGTON STATE

Washington State House Democrats

HOUSE DEMOCRATS

Rep. Van De Wege proposes tax credit for composite manufacturing businesses

OLYMPIA—State Rep. Kevin Van De Wege (D-Sequim) announced today new legislation that gives a tax credit to new businesses in the Composite Manufacturing sector. HB 1764 provides for a 60 percent reduction of the standard Business and Operating Taxfor manufacturers and processors of carbon fiber, carbon fiber composites, or carbon fiber products. The measure would expire in 2020 unless extended by the Legislature.

“The composite manufacturing sector is rapidly expanding in Washington, bringing good, family wage jobs to the 24th Legislative District and all across the state,” said Van De Wege. “This bill will help us lower the cost of composite products, increasing our competition and growing the industry even more. That’s good for Washington’s economy and for our middle class families.”

If passed by the Legislature, the Joint Legislative Audit and Review Committee would review data from the Department of Revenue, Bureau of Labor Statistics, and Employment Security Department to determine if the tax credit increased facilities and family wage jobs in the state, possibly leading to an extension of the tax credit.

“By targeting this credit toward a specific industry, we are spurring innovation and economic development for our region. That leads to more jobs and will be a big benefit to the local economy,” said Rep. Steve Tharinger (D-Dungeness), co-sponsor of the legislation.

Ken O’Hollaren, Executive Director of the Port of Port Angeles, spoke of the need for a tax credit for the composite manufacturing industry in order to increase productivity and jobs.

“The Port of Port Angeles has for many years now promoted the composites industry as an excellent opportunity for economic growth on the Olympic Peninsula,” said O’Hollaren. “HB 1764 creates a valuable tax incentive to grow this industry in our State.  We applaud Rep. Van De Wege’s leadership in advocating for policies that recognize the tremendous potential of  advanced composite manufacturing in  Washington.”

HB 1764 has been referred to the Technology & Economic Development committee for a hearing. State Senator Hargrove is co-sponsoring the senate companion bill, SB 5701.