WA Business R&D Funding
An interactive guide to competitive grants and tax incentives for research & development in Washington state.
Understanding R&D Funding: Competitive vs. Entitlement
Funding for R&D in Washington primarily comes from two sources:
- Competitive Grants: These are programs where businesses apply and are selected based on the merit of their proposal. This is the most common source of direct R&D grant funding.
- Tax Incentives/Credits: These function like "entitlement" programs. If your business meets the criteria (e.g., spending on qualified R&D), you are entitled to the tax benefit.
Note: While Washington state previously offered a specific R&D tax credit, it has expired. However, businesses can still make full use of the powerful Federal R&D Tax Credit and other state-level tax incentives for specific industries.
Small Business Innovation Research (SBIR)
A highly competitive federal program that encourages small businesses to engage in R&D with the potential for commercialization. Often called "America's Seed Fund."
Agency: U.S. Small Business Admin. (SBA)
Learn More →Small Business Technology Transfer (STTR)
Similar to SBIR, but requires the small business to formally collaborate with a non-profit research institution (like a university in Washington).
Agency: U.S. Small Business Admin. (SBA)
Learn More →Evergreen Manufacturing Growth Grants
State grants designed to increase the number of manufacturing and R&D jobs. Supports businesses and innovation clusters in key sectors like aerospace, clean tech, and advanced manufacturing.
Agency: WA Dept. of Commerce
Check Program Status →Clean Energy (RD&D) Grants
Funding for strategic research, development, and demonstration of new and emerging clean energy technologies to help meet state climate goals.
Agency: WA Dept. of Commerce
Learn More →WRF Technology Commercialization Grants
Funds projects at Washington-based non-profit research institutions to help advance breakthrough technologies from the lab to commercial application.
Agency: Washington Research Foundation
Learn More →Federal R&D Tax Credit
A powerful, dollar-for-dollar tax credit for businesses of all sizes that invest in qualified research and development activities. This is the primary R&D "entitlement" program available.
Agency: U.S. Internal Revenue Service (IRS)
Learn More →Aerospace Industry Incentives
Washington provides specific B&O tax credits and sales/use tax exemptions for manufacturers and processors involved in aerospace product development, R&D, and tooling.
Agency: WA Dept. of Revenue
Learn More →High Technology Sales/Use Tax Deferral
Deferral or exemption of state and local sales/use tax on the construction of R&D facilities and purchases of qualified machinery and equipment for high-tech industries.
Agency: WA Dept. of Revenue
Learn More →State Trade Expansion Program (STEP)
Provides grants to small businesses to help them enter or expand in international markets. This can be used to market and export products developed through R&D.
Agency: WA Dept. of Commerce
Learn More →