Effective August 1, 2015, Washington is expanding its sales and use tax exemption for manufacturing machinery and equipment to include certain software developers. Software manufacturers that deliver prewritten software to customers electronically qualify for the exemption for machinery and equipment used directly in a manufacturing, research and development, or testing operation. Members of an affiliated group are not eligible for exemption when the following apply: at least one member of the group was registered with the Department of Revenue on or before July 1, 1981; as of August 1, 2015, the combined employment in Washington of the group exceeded 40,000 full-time and part-time employees; and the business activities of the group primarily involve development, sales, and licensing of computer software and services.(Special Notice, Washington Department of Revenue, July 27, 2015)