"The reason Valley Processing is located in the Yakima Valley is because of the close proximity to fruit, good transportation infrastructure, and a good workforce."

~Terry Bliesner, Vice President
Valley Processing

Incentives

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New Vision works closely with both existing and new companies to ensure firms are best able to take full advantage of the programs that can save businesses time or money. Companies expanding in Yakima County can tap into a variety of tax, financing, and employee training incentives:

 

Industrial Revenue Bonds

Local public corporations may issue tax-exempt Industrial Revenue Bonds (IRB) on behalf of private companies. Because interest payments to IRB buyers are not subject to federal income tax, bonds can subsequently be sold at lower interest rates. This may greatly reduce project cost. Expenses that are eligible for IRB financing include: property acquisition, machinery and equipment, design, consulting, legal, and accounting services, and financing costs. For issuing process and application call (509) 575-1140.
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Sales Tax Exemptions

Yakima County offers a sales tax exemption on buildings, equipment, and machinery used in manufacturing, research and development, or computer-related businesses. A qualified business can utilize a sales tax exemption on the entire amount of capital invested in project construction and installation. This exemption program also exempts taxes on construction labor, equipment installation, equipment replacement parts with a life of over one year, and repair labor.
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B & O Tax Exemptions

Companies that manufacture and distribute food products out of state are eligible for an exemption from the State’s Business and Occupation tax.  This exemption applies to fresh fruit and vegetable processors and dairy products and seafood manufacturers.

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Additional B & O Tax Credits

Businesses locating in Yakima County are eligible for a credit against the state business and occupation (B&O) tax. Manufacturing, computer services, and research and development firms can claim a $2000/employee B&O tax credit (or $4000 per employee when wages and benefits exceed $40,000 per year). Up to $5000 of additional B&O tax credits are available to companies that provide job training programs cost-free to their employees. This credit is worth up to 20 percent of total approved training costs.

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Renewal Community Program

Businesses located in within the Renewal Community area may be eligible for a number of substantial tax incentives through this program.

  • Wage Credits: Businesses within the Renewal Community area can get a  tax credit of up to $1,500 for every newly hired or existing employee who lives and works in the Renewal Community.
  • Increased Section 179 Deduction: Renewal Community businesses qualify for an additional $35,000 in Section 179.
  • Zero Percent Capital Gains: If you purchase land or stock in a Renewal Community business, you will not pay capital gains on the sale if you hold the asset for over five years & maintain "qualifying business" status.
  • Commercial Revitalization Deduction (CRD): The CRD provides an accelerated depreciation schedule for a property owner that constructs a new building or substantially rehabilitates an existing property. Building  owners may deduct all construction costs over 10 yrs or half in year one. Applications for the CRD are available through the city of Yakima.  (http://www.ci.yakima.wa.us)

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Employment Training

The Washington State Jobs Skills Program provides matching grants for customized job training. The program is tailored to meet the needs of new or expanding employers. The program requires a 50 percent matching investment from the company, but this match can include in-kind contributions (ex. use of facilities or equipment, training instruction, etc). The Workforce Development Council (WDC) can also subsidize on-the-job or customized training for new companies. The WDC works closely with local vocational schools and community colleges to design and fund training that meets an expanding employer’s needs.
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Site Development Assistance

An expanding company in Yakima County can benefit from a state-financed infrastructure fund which can lower the cost of providing access roads, rail lines, sewer and water extension, or other public works needed for industrial development. Yakima County also offers funds through its SIED (Supporting Investments in Economic Diversification) program that can be used to offset or reduce costs of a non-retail development project. Job creation and capital investment are crucial criteria needed to trigger access to state and local infrastructure financing programs. For issuing process and application call (509) 575-1140.
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Fast Track Permitting

Yakima County and its municipalities are committed to reduce roadblocks and paperwork that stand in the way of private investment projects. Permits and licenses can generally be approved within 30-60 days from the time a company submits completed applications. Expect excellent customer service, and look to the Yakima Valley if you want a project to unfold on your terms and time lines.
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