Economic Development

Single-Family & Detached ADU Tax Exemption

Spokane County administers a Single-Family and ADU Tax Exemption Program that offers a property tax exemption on the value of new improvements such as additions, remodels, and construction of an attached or detached accessory dwelling unit (ADU). Please see the Spokane County Assessor's webpage on property tax exemptions.

Opportunity Zones

Opportunity Zones are federally designated tracts meant to spur investment in under-invested communities. A revised program is being rolled out by the US Department of Treasury, referred to as Opportunity Zones 2.0 (OZ 2.0), designating new opportunity zones for 10 years beginning January 1, 2027. Learn more about City of Spokane Census Tracts eligible under the Opportunity Zones 1.0 program. More info.

Brownfields

The City of Spokane Brownfields Program is a program that assists City Departments and qualified private individuals, businesses, and nonprofit organizations to assess and cleanup contaminated sites or Brownfields. This, in turn, achieves greater use of existing land, revitalizes neighborhoods, and drives economic development. Brownfield development is one of the key strategies in the City's Economic Development Strategy. More info.

Clean Buildings Act Assistance – Avista

Local utility provider Avista has resources available for upcoming Clean Buildings Act requirements. These resources include a no-cost energy management program, an energy performance portfolio manager, and legal assistance. Avista has also partnered with the Smart Buildings Center to provide technical assistance and support for project compliance under the Clean Buildings Act. More info.

IRS Small Business Tax Deduction for Fire Sprinklers

The 2017 Tax Cuts and Jobs Act allows business owners to write off the full cost of commercial fire sprinkler systems as an expense up to $1.04 million. This benefit enables many small businesses to immediately recover the costs of the upfront investment. Section 179 of the U.S. Internal Revenue Code has long allowed small businesses to deduct the cost of certain property like machinery as an expense at the moment it’s placed in service—instead of writing it off over its useful life. The new Section 179 deduction applies to upgrading existing systems or retrofitting systems in existing structures. Under Cost Recovery Section 13201, there is an allowance for bonus depreciation for upgrades made between 2017-2027. Under the new law any sprinkler system in an existing commercial structure has the ability to deduct costs. Please consult your tax accountant on how to apply this IRS tax deduction for your building or business.

Spokane Foreign Trade Zone (FTZ)

Spokane is home to three of Washington’s Foreign Trade Zones (FTZ).

If your company imports components for distribution or manufactures finished products that are exported, Washington’s Foreign Trade Zones (FTZ) can offer you a tremendous competitive advantage. Businesses with operations in a FTZ can receive foreign merchandise for storage, assembly, manufacturing and processing without being subject to formal Customs entry procedures, duties and federal excise taxes. More info.

Spokane County has a C-PACER Program

Commercial Property Assessed Clean Energy + Resiliency (C-PACER) is an innovative financing tool for more efficient, resilient commercial and multi-family properties.

Benefits

• Increases Marketability: Projects may enhance building comfort and aesthetics, attracting tenants and buyers
• Transferability: Voluntary assessment is tied to the building, transfers with ownership
• No Impact to Debt-to-Equity Ratio: Does not impede the owner’s ability to borrow additional funds
• Overcomes Split Incentive: Debt service can flow through to tenants some lease structures
• Seismic and Fire Retrofits: Distributes expense over long term
• Clean Building Act (HB1257): Facilitates compliance by operationalizing large capital investments required to achieve the targets.

More info.