Grant County Strategic Infrastructure Program (SIP):

The SIP Fund is the accumulation of .04% of sales and use tax that is rebated to Grant County by the State of Washington and is made available by the Grant County Commissioners for distribution as loans and grants to municipalities, port districts and local junior taxing districts within Grant County for the purpose of developing infrastructure and public facilities that will provide a positive economic benefit and return to the community.

Rural Washington Loan Fund:

The Washington Rural Loan Fund provides favorable repayment term gap financing to businesses that will create new jobs or retain existing jobs, particularly for lower-income persons. The program uses federal funds to provide resources for businesses in rural counties, distressed counties, and selected geographic areas (Chapter 43.168 RCW). 

Community Economic Revitalization Board (CERB): 

The CERB program provides financial assistance through loans and grants to counties, cities, and port districts. The moneys can be used to finance public facilities that result in the creation, retention, or expansion of jobs. Priority for funding is given to projects located in rural counties (Chapter 43.160 RCW).

Community Development Block Grant (CDBG) Float Loan Program: 

The CDBG Float Loan program uses federal CDBG funds as a source of interim financing for business projects that are able to secure an irrevocable letter of credit and are willing to commit to making jobs available to low-income people. The program is limited to businesses located in federal nonentitlement areas of the state.  These areas are mainly the state's rural counties.

Section 108 Loan Program: 

The Section 108 Loan program is used to attract and leverage private-sector funds for business expansion by pledging future federal CDBG funds, received by the state, as security for loans that meet federal criteria for job creation for lower income persons. The program is limited to businesses located in federal nonentitlement areas of the state.  These areas are mainly the state's rural counties.

Washington Economic Development Finance Authority (WEDFA):

The WEDFA provides below-market rate financing, through the issuance of tax-exempt bonds, to credit-worthy small manufacturing and processing companies.  The financing is limited to a maximum of $10 million per project.  The WEDFA is required to conduct intensive marketing and outreach efforts in the state's distressed counties (Chapter 43.163 RCW). 

Local Option Sales and Use Tax for Public Facilities in Rural Counties: 

Rural counties are authorized to impose a sales and use tax at the rate of .08 percent.  The tax is credited against the state sales tax so there is no difference in the total tax rate paid by the consumer.  Moneys collected under the tax must be used to finance public facilities in rural counties.  Eligible counties began imposing the tax after July 1, 1998. A county may only impose the tax for 25 years after it is first adopted (RCW 82.14.370). 

TAX INCENTIVES

Programs in this category provide either a general or targeted tax reduction, through the use of tax credits or exemptions, to specific industries.  For more detailed information on these tax incentives you can contact the Legislation and Policy Division of the Washington State Department of Revenue at 360-570-6128.

Manufacturing Sales & Use Tax Incentive: 

Sales tax or use tax does not apply to: Sales to a manufacturer or processor for hire of machinery and equipment used directly in a manufacturing operation or research and development operation. Sales to a person engaged in testing for a manufacturer or processor for hire of machinery and equipment used directly in a testing operation. Sales of or charges made for labor and services rendered in respect to installing, repairing, cleaning, altering, or improving the qualifying machinery and equipment. Charges for repair parts for qualifying machinery and equipment if the parts have a useful life of at least one year.

Rural County B&O Tax Credit for New Employees: 

Provides a $2,000 credit for each new qualified employment position with annual wages and benefits of $40,000 or less; or a credit of $4,000 for each new employment position with wages and benefits of more than $40,000 annually. The business must be a manufacturing, research and development, or computer related service business (excluding light and power business) that locates or expands in a designated distressed county or other eligible area.

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