CEZ Incentive

Community Empowerment Zone

Community Empowerment Zone (CEZ) Incentives

B&O credit for new employees in manufacturing and research & development in rural counties
Available to: Manufacturers, R&D laboratories, and commercial testing facilities located in rural counties or within a CEZ.
Qualifying activity: Creating new employment positions/increase instate employment by 15%.
Credit amount:

  • $2,000 credit/position with annual wages/benefits of $40,000 or less; or
  • $4,000 credit/position with wages/benefits of more than $40,000 annually.

Reporting/documentation:

Purchases of server equipment and power infrastructure for use in eligible data centers - sales/use tax exemption
Attention:The Department is currently accepting applications for this program. Please see the Special Notice titled Data center exemption and application process for details.
Available to: The owner—and tenants—of an eligible data center that has a combined square footage of at least 100,000 square feet and is located in a rural county.

To qualify the data center must have a building permit to construct, renovate, or expand the data center issued during one of the following periods:

  • April 1, 2010 to June 30, 2011
  • April 1, 2012 to June 30, 2015
  • July 1, 2015 to June 30, 2025

Qualifying activity:
Sales/use tax exemption on:

  • purchases of eligible server equipment and labor and services to install server equipment, in an eligible data center
  • purchases of eligible power infrastructure, and labor and services to construct, install, repair, alter, or improve eligible power infrastructure

Application process:

Approval and reporting:

  • If approved, the Department will issue a Certificate for Sales Tax Exemption for Purchases by Data Centers.
  • Once approved, you must submit the Annual Tax Performance Report by May 31st of the year following the year.

Sales & use tax deferral/waiver for corporate headquarters locating in community empowerment zone
Available to: Business with corporate headquarters locating in a CEZ.

Qualifying activity:

  • locate within a CEZ
  • invest at least $30 million in qualified buildings, tangible personal property, and fixtures, etc, including labor and planning
  • employ at least 300 employees, each who must earn at least the annual average wage for the state for that year
  • meet the definition of corporate headquarters as defined in RCW 82.82.010.

Reporting/documentation:

  • Corporate Headquarters Application for Sales and Use Tax Deferral can be made at any time prior to completion of construction of a qualified building or buildings, but tax liability incurred prior to the department's receipt of an application may not be deferred.
  • All businesses must maintain a qualified activity at the site of the investment project for the year in which the investment project is certified operationally complete plus seven additional years.
  • Annual Tax Performance Report must be filed by May 31st of the following year in which the project is certified and for the following seven years.
  • Electronic filing of all documents required.
  • List of CEZs

For local assistance, please contact:

Greater Spokane Incorporated
Stan Key
Business Development Manager
509.321.3640
skey@greaterspokane.org

OR

Contact Information

Contact an Economic Development Specialist at:
509.625.6033
888.390.HACK (4225)
incentives@spokanecity.org
hackingwashington@spokanecity.org.