Office of Governor Gary Locke
FOR IMMEDIATE RELEASE - January 28, 2004
Contact:  Governor's Communications Office, 360-902-4136

Gov. Gary Locke Praises Senate’s Bipartisan Passage of Economic Development Legislation

Gov. Gary Locke today praised the state Senate for making progress on his proposed economic development legislation. The Senate passed three bills on a bipartisan basis that would extend tax incentives for high tech research and development and rural economic development, and help local governments develop tools to attract new businesses or help existing businesses grow and expand.

“I am pleased that legislators recognize the importance of extending tax incentives for critical research and development and rural economic development in our state, and I praise the quick action in the Senate,” Locke said. “I am also encouraged by the passage of our legislation to help local governments develop more economic development tools.

“While these tax incentives and other economic development tools are important, the Legislature must also better fund education. Otherwise, how can we consider giving tax breaks to businesses to create more good-paying jobs without also giving our students the opportunity to land those jobs?”

Senate Bill 6239 would extend tax incentives for research in specific technology areas and construction of research facilities. The incentives include sales tax deferrals and exemptions for qualified investments in research and development (R&D) facilities, and a business-and-occupation (B&O) tax credit for qualified R&D expenses.

Qualified industries include advanced computing, advanced materials, biotechnology, electronic device technology and environmental technology. Accountability tools to measure the long-term effectiveness of incentives would be provided. The legislation would also extend the sales tax deferral to research facilities built by the universities and would eliminate the B&O tax on federal research grants to small businesses. SB 6239 passed by a vote of 35-13.

Senate Bill 6240 would extend the sales tax exemption on construction of manufacturing and research facilities in rural areas as well as the B&O tax jobs credit. The legislation would also continue the B&O tax credit for help-desk enterprises in rural areas. SB 6240 passed by a vote of 49-0.

Senate Bill 5364 would provide local governments willing to invest in their own infrastructure an opportunity to keep some of the state taxes generated when businesses take advantage of these improvements and locate or expand in local communities. State taxes retained by local governments are used to pay bond debt on infrastructure improvements. SB 5364 passed by a vote of 44-5.

Locke’s other proposed economic development legislation, which was not acted on today, would maintain funding for the second year of the current biennium for the “From the Heart of Washington” program, which provides advertising and in-store labeling for Washington-produced agriculture products. The legislation would also continue funding for the second year for a state trade representative for China and Southeast Asia. The legislation would also increase funding for the Small Farm and Direct Marketing program.

» Return to this month's News Releases

» View News Release Archive