Skagit County Incentives
Skagit County can offer streamlined permitting for facilities located in unincorporated county areas, depending on the nature of the project. For more information, contact EDASC or Skagit County Planning and Development Services.
Skagit County has access to economic development grants of up to $500,000 per project that can be used to support road, infrastructure, and site/building improvements, among other types of projects that support a public economic development benefit. This couples with state-level grant and funding opportunities for infrastructure through the Community Economic Revitalization Board (CERB) and similar initiatives. For more information, contact EDASC.
Value-Added Agriculture Innovation Partnership Zone (IPZ)
For value-added agriculture products, the IPZ, which is centered around the Port of Skagit’s airport and business park facilities, has emerged as a center for innovative value-added agriculture research and production within Washington State. Close proximity to these facilities will support agriculture processing and other value-added agriculture businesses in partnering with and utilizing these assets to scale up their activities. Learn more about the IPZ.
Employers hiring veterans may be eligible for special tax credits and incentives. More information is available through the U.S. Department of Veterans Affairs Veterans Opportunity to Work web portal.
Washington State Tax Exemptions and Incentives
Washington State offers a diverse range of competitive tax incentives for businesses, many of which are tailored to specific industry sectors. Examples include:
Aerospace Firms Incentives
- Reduced B&O Tax rate for aerospace manufacturing.
- Credit against the B&O Tax for preproduction development expenditures.
- Credit against the B&O Tax for property/leasehold taxes paid on aerospace manufacturing facilities.
- Sales & Use Tax exemption for computer hardware/software and peripherals.
- All manufacturing equipment is exempt from Sales Tax
High Technology Firms Incentives
- Credit against the B&O Tax for R&D expenditures.
- Deferral/waiver of the Sales and Use Tax for plant and equipment for biomedical manufacturing facilities
- Manufacturers of solar energy systems/components can take advantage of a reduced B&O Tax rate. Additionally, installed equipment for the generation of alternative energy is exempt from the Sales Tax.
Agriculture & Food Processing Incentives
- B&O Tax exemption/deduction for manufacturers of fresh fruits and vegetables
- B&O Tax exemption/deduction for manufacturers of seafood
- B&O Tax exemption/deducation for manufacturers of dairy products.
The Job Skills Program is a competitive grant that offers customized training through the community college system with 50 percent cost share by the state. The Customized Employment Training Program provides participating businesses a B&O tax credit for 50 percent of their payment to the training program.
For complete information on available incentives and tax credits, please visit the Washington State Department of Revenue tax incentive website.
Businesses in Skagit County enjoy the following state tax exemptions, in addition to sector and project-specific 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 Community Empowerment Zone (CEZ).
- Qualifying Activity: Creating new employment positions/increase in-state 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.
Machinery and Equipment Sales & Use Tax Exemption
- Available To: Manufacturers and processors for hire performing manufacturing and R&D. Testing operation for a manufacturer and processor for hire.
- Qualifying Activity: Purchase of qualifying machinery and equipment used directly in a manufacturing operation or research and development performed by a manufacturer, or testing operations performed for a manufacturer.
- Savings Rate: 8.5%
High Unemployment County Sales & Use Tax Deferral/Waiver for Manufacturing Facilities
- Available to: Manufacturers, persons conditioning vegetable seeds, research and development and commercial testing for manufacturers in a qualifying county or in a Community Empowerment Zone (CEZ).
- Qualifying Activity: Certain construction and equipment purchases for new and expanding businesses.
- Savings Rate: 8.5%