Spokane Expansions Benefit from Tax Incentives Program Print E-mail

July 26, 2010

western-systems-and-fabricationIn this time of economic uncertainty, a number of businesses in the Spokane region are not only surviving, but expanding and taking advantage of the Community Empowerment Zone (CEZ) tax incentives program.  In 2010 alone, Greater Spokane Incorporated, the region’s Chamber and Economic Development Council, assisted companies with CEZ applications for nearly $3 million of capital projects, resulting in Sales and Use Tax savings to those companies of almost $250,000.

 

The CEZ tool was designed to stimulate economic development by offering tax incentives to qualified new or expanding businesses engaged in manufacturing, research and development, and software development.  Spokane’s Community Empowerment Zone includes most of the city’s West Central, East Central and Hillyard neighborhoods - see map.  The program offers deferral of Sales & Use Tax on construction costs and B&O Tax credits which can work better for smaller companies and can be quite significant.

Several GSI members have taken advantage of the tax incentive opportunity. The CFO of Leisure Concepts Jeff Rogers, says the CEZ program helped them significantly. "Utilizing the CEZ incentive in 2002 and 2006 allowed us to save on the tax dollars associated with our 70,000+ sq. ft. of facility expansion which added fifteen new employees. This year, we are going through another expansion and saving again with this great program,” Jeff said.

The general  manager of Lumber Yard Supply, Mark Griffith, said, “The CEZ process couldn’t have been easier - from the initial meeting through the audit.”

Since it was launched in 2001, participating companies have made over $110 million in capital investments, hired 1261 new employees (half of which reside in the City of Spokane), and earned close to $10 million in tax savings. These business expansions are wonderful news for the Spokane area and the benefits to the companies are great.  

As of July 1, 2010, qualified companies must be located within the zone itself and hire residents of the zone in order to receive the Sales and Use Tax deferral/exemption on construction projects.  Previously, the zone benefits were allowed to projects anywhere in Spokane County so long as the qualifying company hired one zone resident for every $750,000 of investment in construction costs for new or expanded facilities. Greater Spokane Incorporated will be lobbying for a legislative change to reestablish these benefits to include projects throughout the county.   

Anyone interested in learning more about the CEZ program should contact Stan Key, Industry Manager for Greater Spokane Incorporated, 509.321.3640.

Read more on the businesses who have benefited from the CEZ program here.

Please visit our photo gallery with images of the businesses that have benefited from the CEZ program.