• City of Tacoma QA
  • City of Tacoma OpenData




Job Credit

Tacoma was the first city in Washington to create a job credit to use against local business tax for new, permanent, family-wage jobs a business creates.  Since the first credit was established in 1999, the job credits have expanded to provide more incentive to a business who resides in the City and is engaging in a business activity within the City.  Effective January 1, 2024, Tacoma has two types of job tax credits – Family-Wage and Tacoma Work Opportunity.  

 

*All credits must be taken within 365 days of filling the new position*  

 

*NEW* in 2024

Tacoma Work Opportunity Tax Credit

This five-year tax incentive is targeted at encouraging employers to add new employment positions to their workforce and hire individuals with a disability identified as a vocational rehabilitation referral for the federal Work Opportunity Tax Credit (WOTC). 

 

Businesses get a $1,000 credit to apply to their B&O tax every year for five years if they:

  • Add a new temporary, permanent, part-time or full-time position to your Tacoma workforce
  • Fill the position with a person that meets the vocational rehabilitation referral qualifications for the federal WOTC.
  • Pay that employee at least the current years minimum wage as calculated by the state of Washington  Department of Labor and Industries, or when a person has been issued a special certificate as outlined in WAC 296-126-010
  • 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 credit.  
  • Maintain records that show: 1) growth in your employment base in Tacoma and 2) WOTC certification by the state of Washington Employment Standards Department for the position the credit was taken

Family-Wage Jobs

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 $2,250 annually.

 

How it Works

$500 Base Credit - Qualifying Position

Businesses get a $500 credit to apply to their B&O tax every year for five years if they:

  • Add a new full-time (35 or more hours/week) job to your Tacoma workforce.
  • Pay that new employee the minimum hourly family wage per hour.
  • 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 credit. 
  • Maintain records that show the growth in your employment base in Tacoma.

Additional $250 credit - International Services/Community Empowerment Zone

Receive an additional $250 credit to apply to B&O tax every year for five years if you add a qualifying position that meets the following criteria:

  1. Do business in international services, such as computer services, engineering, business consulting or other ventures that reach outside the country’s borders; and
  2. Add the new job to your workforce in the City of Tacoma within the community empowerment zone or distressed areas, which are areas of high poverty and unemployment as defined by the Washington State Department of Revenue.

Additional $500 credit - Tacoma Resident

Receive an additional $500 credit to apply to B&O tax every year for five years if the person hired to fill the new qualifying position is a resident of Tacoma. 

 

Additional $250 credit - Green Job

Receive an additional $250 credit to apply to B&O tax every year for five years if the new qualifying position is considered a "green job" as defined in TMC 6A.30.065.   For new positions added after December 31, 2023, the Green Job tax credit is $1,000.  

Quick Links

 

DSHS Division of Vocational Rehabilitation

 

Job Credit Supplemental

 

Economic Recession State of Emergency Declaration

 

Year

Minimum Hourly Family Wage

2024 

$24.50

2023

$23.38

2022

$22.27

2021

$21.21




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