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Tax exemption and credits, customized employee training, and low interest loans are just some of the incentives for doing business in the Seattle-King County area. Beyond the usual programs of federal government assistance (SBA 504 & 7a loans; Targeted Job Tax Credits and Urban Development Action Grants), state and local governments in the area have responded with a package of incentives designed to meet the individual needs of business and industry.
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Industrial Revenue Bonds
Ten public corporations in King County issue tax-exempt Industrial Revenue Bonds (IRBs) on behalf of private companies. The key advantage to this type of financing is that interest payments to IRB buyers are not subject to federal income tax. Because of this tax-exempt status, bond buyers are willing to accept lower rates of interest on the bonds, thus reducing the project financing costs for the participating companies.
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Community Development Interim Loan
King County manages an $8 million revolving float loan program designed to assist certain projects deemed beneficial to local economic development or low income housing. Intended as interim financing, the loans may be used to provide working capital or to purchase fixed assets. The term is typically one to two years and the interest rates are negotiable but usually run 2-3 points below a borrower's normal cost of funds.
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Employee Training
Washington employers can access over thirty state and federal programs to assist in accessing labor market information, recruiting new employees and designing customized training.
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Foreign Trade Zones
Washington State currently has eleven designated foreign trade zones. These are legally secured areas outside the nation's custom territory which operate as duty free areas. |
WA Economic Development Finance Authority
The Washington Economic Development Finance Authority (WEDFA) is a public corporation of the state authorized to issue nonrecourse tax-exempt and taxable economic development revenue bonds. The Tax-Exempt Manufacturing and Processing Equipment Financing Program (TEMPE) allows bond interest to be exempt from federal income tax. This program is designed for equipment financings of $250,000 or greater.
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Community Economic Revitalization Board
When access roads and rail lines, sewer and water extensions, or some other public improvement is needed to spur private sector investments in King County, the revolving loan and grant program of the Community Economic Revitalization Board may be utilized. CERB monies are awarded to local communities on an "as needed" basis for public works projects.
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Community Empowerment Zones
Community Empowerment Zones have been established in parts of Seattle and in White Center in King County. Firms locating in a Community Empowerment Zone, or in a county containing a Community Empowerment Zone, may qualify for the Distressed Area Sales and Use Tax Deferral/Exemption Program if at least 75% of the jobs created are filled by residents from the Community Empowerment Zone. |
Venture Capital
The Seattle area has recently seen the arrival of several high-profile venture capital and investment banking firms, as well as the rise of large, local venture capital funds. Venture capital firms put more than half a billion dollars into Washington start-up companies in the first quarter of 2000--nearly 21 times more than the same quarter of 1997. And Seattle-based venture capital firms have raised over $100 million funds. |
Additional Resources:
Washington State Incentive Summary
King County Incentives (Printable Format)
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