Microsoft Lands Biggest Corporate Tax Break in Washington's History

A recent report by The Seattle Times claimed Microsoft is receiving the largest state corporate tax break in Washington's records, thanks to the federal provision of 100% bonus depreciation. This allows companies to deduct the full cost of major investments in the year they're made rather than spreading the deduction over several years.

The One Big Beautiful Bill Act, signed into law in July 2025, made 100% bonus depreciation permanent after it had been phasing out under prior law. The scale of Microsoft's break is more than triple the previous record for a single company, according to Institute on Taxation and Economic Policy senior fellow Matthew Gardner.

KIRO host Jake Skorheim believes these corporate tax breaks benefit both the economy and the community. 'If the company is making investments to grow, it increases employees,' he said. 'It's growing the infrastructure, which is good for everybody.'

Microsoft plans to spend $190 billion this year on expanding its business. Jake pointed out that this investment will create jobs, with 53,000 Microsoft employees collectively earning an average of $230,000. These workers, in turn, contribute to the local economy by buying homes, groceries, and cars.

KIRO host Spike O'Neill countered that it's not about whether Microsoft benefits from the deduction but rather whether a company posting record profits needs it. 'They're also raking in record profits at a time they've never paid less money in taxes,' he said.