Washington · Jobs / Rural · WA-RURALJOBS-001
B&O Tax Credit for New Employees in Manufacturing/R&D in Rural Counties
Publication revised September 24, 2026. Sourcebook page 269.
Credit amount / calculation
Per-new-employee business and occupation tax credit; amount depends on wage/benefit level and employment-growth conditions.
Business fit and eligible activity
Directly relevant to qualifying manufacturing facilities in rural counties; timely application after hiring is required. Hiring, wages or qualifying training; where the program also requires investment, satisfy both tests. Page
Eligibility and practical use
This is a hiring credit, not an equipment credit. It becomes interesting only when the planned headcount clears the program threshold and the new jobs satisfy wage, hours, location, and retention rules. A logging contractor should confirm that its industry or work location is within the eligible class before counting the jobs. Hiring before the required certification or reservation can jeopardize the credit.
Illustrative business benefit
Use-of-credit illustration, not an estimated award: assume the agency or completed tax form establishes a $1,000 credit for the qualifying activity described above. If sufficient eligible tax is due, a $1,000 credit available for current use reduces that tax by $1,000. If annual limits allow only $600, that is this year's saving; the other $400 survives only if the carryforward or transfer rules permit. Obtain the actual program calculation before estimating a project benefit.
Timing / first action
Check application or certification requirements before incurring the qualifying expense or beginning the qualifying activity.
Official sources
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