Four biotech companies from Snohomish and King counties qualify for jobs-oriented tax breaks

Published 4:06 pm Tuesday, December 8, 2009

Four biotechnology companies in Snohomish and King counties have received $364,000 in tax breaks for expanding operations and creating 58 new jobs — even as the state entered recession.

Two Bothell-based companies, Blue Heron Biotechnology and CMC ICOS Biologics, received the tax breaks, according to Department of Revenue officials. Bio-Rad Labs of Woodinville and Light Sciences Oncology of Bellevue were also counted as qualifying.

The cost of the four projects from 2008 was pegged at $4.1 million, translating to $364,000 in retail sales taxes combined.

The tax breaks were outlined in a report released by the Department of Revenue earlier this month, a follow-up on a program approved by the Legislature in 2006.

New biotechnology companies — or existing companies that expand — are eligible for a retail tax deferral or an outright exemption when building or renovating facilities.

The program was designed partly as a job generator, an incentive for biotechnology companies to start or expand in Washington state.

But so far, new companies haven’t taken advantage of the tax break, said Van Huynh, a tax policy specialist for the state.

A total of 478 people were employed by the four companies in 2008, and 58 positions were created.

Washington residents were hired to fill 55 of those positions, according to the report.

“This 13.8 percent job growth is exceptional given that over this same period, manufacturing employment in Washington declined and total employment in the state was almost unchanged,” Huynh wrote in the report.

Reporter Amy Rolph: 425-339-3029; arolph@heraldnet.com.