Analysis of Washington High Tech Tax Credit

Project Dates

03/02/2012 - 06/30/2012


The State of Washington has a credit provision in its Business & Operations tax intended to incentivize research and development expenditures in high tech industries. The indirect goal of the incentive is to generate employment in the state. Upjohn Institute staff members analyzed administrative data from the state to estimate the employment and earnings generating effect of the R & D credit. The administrative data included tax return information merged with quarterly earnings and employment records. Potential endogeneity of the credits and employment were controlled through instrumental variables.


Washington State Legislature, Joint Legislative Audit & Review Committee, (JLARC)

Subject Area

ECONOMIC DEVELOPMENT; Industry studies; Regional policy and planning