The University of Washington is able to take advantage of tax savings on capital projects that will house research activities.
The High Tech Tax Deferral is an 8 year deferral (which becomes permanent after 8 years) on sales tax associated with construction of new facilities that house the following types of research activities:
Further, the above activities must meet the Department of Revenue definition of research and development. The High Tech Tax Deferral requires an application that must be sent in prior to building permits being issued. The deferral applies to the portion of the building directly related to research. An analysis of the building costs and uses must be performed in order to arrive at the proper percentage.
If you are considering a building project and are interested in learning whether this deferral would apply, please contact your capital projects manager, Alan Nygaard in the Capital Projects Office or Jeff Follman in Financial Accounting.
For more information on the program, please refer to the online Department of Revenue brochure and the University Policy and Procedure.
The Machinery and Equipment (M&E) Exemption allows the University to purchase research-related equipment tax free. This exemption may also be used for some installation/support costs related to such equipment that might typically be considered part of building costs. For example, special excess-capacity wiring specifically required by the qualifying piece of equipment may also qualify for the M&E exemption. For more information, contact your capital projects manager, Alan Nygaard in the Capital Projects Office or Jeff Follman in Financial Accounting.
