RESTRICTEDWORLD TRADE
ORGANIZATIONG/SCM/Q2/USA/18
1 March 1999
(99-0777)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Questions from the EUROPEAN COMMUNITY Regarding the
New and Full Notification of the UNITED STATES1
The following communication, dated 18 January 1999, has been received from the Permanent
Delegation of the European Commission.
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On page 71 of the above notification, four subsidy programmes have been notified by the
State of Washington:  Fuel R&D (Sales and use tax), Industrial Machinery and Equipment (Sales and
use tax), Industrial Machinery and Equipment (Property tax), Industrial Fuels and Raw Materials
(Property tax).
The Community would like to know why th e following specific subsidies granted by
Washington State have not been notified in accordance with Article 25.
1. High Technology Business and Occupation Tax Credit Programme
The Department of Revenue offers a tax credit of up to $2 million for businesses that perform
research and development in selected high technology areas.  These are advanced computing,advanced materials, biotechnology, electronic device technology and environmental technology.
2. High Technology Sales and Use Tax Deferral/Exemption
Firms which start new R&D in the above areas, or which expand existing activity, are eligible
for a sales and use tax deferral or exemption.
3. Distressed Area Sales and Use Tax Deferral/Exemption
Certain firms which locate in specific geographical areas are entitled to a deferral or
exemption of sales and use tax.
4. Distressed Area Business and Occupation Tax Credit
Certain firms which locate in specific geographical areas are entitled to $2,000 credit against
Business and Occupation Tax for each new employment position created.
./.
                                                     
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5. Washington State Job Skills Programme
Under this programme, the state covers half the cost of employee training in certain firms.
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