Incentives

Skamania County is able to offer a variety of incentives provided to timber-dependent counties through state and federal programs. These incentives include:

	A sales tax exemption program that reduces the cost of new investment and industrial expansion for manufacturing and research and development facilities
	Business and occupation tax credits for manufacturing and computer-related businesses when they create or expand their work force with new full-time positions for 12 consecutive months
	A state finance program that lowers the cost of off-site improvements for new industries
	A State of Washington administered Development Loan Fund that provides below market term loans for gap financing for new industries
	A Job Skills Program that provides 50 percent state support for training employees before a new facility opens or when an existing firm expands
	Workforce Development Council Programs that provide classroom training, on the job training reimbursement, and targeted jobs tax credit programs for firms that hire local residents

Sales and Use Tax Exemptions

    Sales and use tax exemptions are available to manufacturing, research and development and computer-related service businesses locating or expanding their work force, plant complex, machinery and equipment in Skamania County. No repayment is required.

    To qualify, a business must create one full time employment position for every $750,000 of capitalized project costs. Under the program, the business must invest in machinery, equipment and plant by: constructing a new building; leasing a newly-constructed, previously unoccupied building-, purchasing an unoccupied building or; expanding or modernizing an existing building with costs in excess of 25 percent of the value prior to improvement.

    A business must submit an application to the Washington State Department of Revenue for approval before construction begins or machinery and equipment is acquired. www.dor.wa.gov

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Business and Occupation Tax Credit

    This program allows a credit against the B&O Tax for manufacturing, research and development and computer-related service businesses for each new employment position created. It also applies if the existing work force is increased by 15 percent over the average number of full-time employment positions maintained in the prior year.

    A business may receive a B&O tax credit of $2,000 for each new fulltime employment position expected to be filled during the year application is made. These new positions must be maintained for 12 consecutive months. The business must create and fill enough new positions to meet the 15 percent increase by December 3 1 of the year in which it applies for credit. An application must be submitted to the Washington State Department of Revenue prior to filling new positions. Businesses that have applied for the sales and use tax exemptions program may also apply for the B&O tax credit. A maximum credit of $300,000 is allowed.

Infrastructure Development

    To facilitate the location and expansion of industry, Washington State has created a special contingency fund to finance local public improvements required for development. The Community Economic Revitalization Board (CERB) administers the development fund for the state. CERB monies are awarded as loans, or in special cases grants, to local governments on an as-needed basis for public works projects. Eligible activities include access roads, sewer and water extensions and other public improvements.

    In order to stimulate a significant level of investment and job creation, CERB has established general funding guidelines, which take into account the following:

	Number of jobs to be created
	Economic diversification potential
	Public and private sector capital commitment
	Feasibility of project completion
	Ability of applicant to repay

Development Loan Fund

    The Development Loan Fund may loan up to $350,000 and can provide one dollar for every two dollars of private loans or capital. The loan amount is determined by the financing "gap" and job impact.

    Development Loan Funds may be used for the acquisition, engineering, improvement, rehabilitation, construction, operation or maintenance of any property, real or personal, used by the business. Working capital term loans are also eligible. The DLF funds are designated to finance that portion of a project which cannot be financed through other sources and which is the last gap needed to be filled before the project can proceed. Rates of interest and other loan terms are determined by the need for the project and by competitive factors.

Workforce Development Council Programs

    The cost of hiring and training new employees may be significantly reduced by programs operated on behalf of South Central Workforce Council. Employers may request customized skill training of job applicants prior to hire, and wage reimbursements of up to 50 percent for new employees hired through on-the-job training vouchers. Their programs are designed to train a broad spectrum of motivated job seekers, from high school students through mature workers

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