Incentives
The Best Public and Private Incentives
Any new developments within the PDA are exempt from the General Facilities Charge. This charge will be dependent on the water tap size. A chart of the tap size and GFC charge can be found at “Water GFC” for water and “Wastewater GFC” for Sewer. These charges can be up to $150,000.
For any project located within the PDA boundary in-City utility rates will apply. Connections to existing systems will be discussed during the pre-development conference. Tap and meter fees will apply and depend on size. Water Meter and Rate; Small Water Tap Fee; Large Water Meter and Tap; Wastewater Connection
Projects within the West Plains Airport Area have access to either Avista or Inland Power electrical service depending on location and Avista Natural gas. The region has very competitive electrical rates starting at about $0.06/kWh and is over 90% renewable. Rates are negotiated with the utility provider.
Local municipalities offer incentives on low impact landscaping and alternative commute to work programs. We will discuss these opportunities as your design progresses or please let us know if you would like additional information.
Developments within the City of Spokane are assessed a traffic impact fee based on the size and use of the building. For example of those fees would be applied as 100,000 x $1.18 per sf/GFA for manufacturing or $118,000; and 100,000 x$0.52 per sf/GFA for warehousing or $52,000. The City of Spokane has $1,000,000 available to projects within the PDAs to reduce or eliminate the fees subject to City Council approval on a first come bases. Once $1 million in waivers have been applied, the reduction or waiver will no longer apply. Manufacturing and warehousing projects have been specifically identified as eligible. The traffic impact fees are assessed at time of permit. Currently the entire $1 million is available.
A credit to employer B&O Tax is available for new employees within an CEZ. Preliminary discussions suggest all positions will be greater than $40,000 including benefits. Therefore, each qualifying position may result in a credit of $4,000.00. To be a qualifying position the new employee must live somewhere within the CEZ (Spokane CEZ). The employer applies for the tax credits. Once approved, the employer will apply the approved credit once the position is hired. As an example assuming 50% of the employees reside in the CEZ the credit would be calculated as 250 employees x 50% residing in CEZ x $4,000 credit = $500,000. Employees under $40,000 per year earn a credit of $2,000 per qualifying employee.
Until June 30, 2020 you can receive sales/use tax deferral on your purchase of qualifying machinery, equipment and construction for qualified buildings for manufacturers in CEZs. Spokane’s CEZ has been designated as an eligible CEZ. You must employ at least one permanent full time employee for each $750,000 of investment of deferral requested. The employee must reside within the CEZ. The deferral must be passed to the lessee. You must make application for the deferral and receive a deferral certificate prior to making purchases. The qualified activity at the site must continue for 7 years + the year the project is completed.
Qualifying manufacturing equipment is exempt from the Washington State Sales Tax rate of 6.5%. The company applying the sales tax exemption must complete a Manufacturers’s Sales and Use Tax Exemption Certificate and provide it to the vendor. No application is required.
Washington State offers numerous incentives for companies in the aerospace industry. Incentives include B&O Tax reduction, sales tax on facility construction, research and development and computer hardware/software/peripherals. Please let us know if you would like additional information for aerospace incentives.