Tacoma is the first and only city in Washington to provide a credit against your local business tax for every new, permanent, family-wage job a business creates. This applies to eligible persons as defined in the Tacoma Municipal Code 6A.30.065.B(2)(a), an eligible person is a person or company who resides in the City and is engaging in a business activity within the City.
This five-year tax incentive is designed to stimulate business, reward businesses for creating good-paying jobs, and put our citizens to work. That means if you expand your workforce in Tacoma, you can get a credit against the B&O tax of up to $750.
How It Works
You can get a $500 B&O tax credit every year for five years if you:
- Add a new job to your Tacoma workforce.
- Pay that new employee at least $18.64 per hour in 2016 plus benefits comparable to your industry, no matter what kind of job it is. See the schedule below for other years.
- Keep that new position for at least five years. If your employee leaves the position, you have three months to refill it without any reduction in the credit.
- Maintain records that show the growth in your employment base in Tacoma.
- Take the credit against your City of Tacoma taxes each year and attach a supplemental information sheet. The credit must be taken within 365 days after filling the new position.
You can receive an extra $250 for a total of $750 B&O tax credit every year for five years if you add a job as described above, plus both of the following:
- Do business in international services, such as computer services, engineering, business consulting or other ventures that reach outside the country’s borders.
- Add the new job to your workforce in the City of Tacoma within the empowerment zone or distressed areas, which are areas of high poverty and unemployment as defined by the Washington State Department of Revenue.