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Incentives and Assistance
Why do Business in Spokane Valley?
Spokane Valley is committed to maintaining a business-friendly environment to help sustain and grow businesses. From creating business-friendly incentives, permitting, and workforce initiatives for establishing and relocating businesses, to administering programs to help small, local companies to grow, the city's economic development team is determined to provide unrivaled customer service. The City has also developed specialized programs to incentivize the development of various properties. Learn about the city's demographics.
SEPA Exemptions
Spokane Valley continues to make developing properties in the City easier and more predictable. The City has adopted the State Environmental Policy Act (SEPA) infill exemption areas where residential, mixed-use, and commercial non-retail development is categorically exempt from the city's SEPA regulations. The Spokane Valley Incentive Map shows these infill exemption areas and the city's vacant and partially used properties.
The Northeast Industrial Area SEPA Planning Action
Projects in the northeast industrial area of the City may qualify as a "planned action," allowing developers to use the City’s completed environmental analysis under the State Environmental Policy Act (SEPA), and therefore, would not be subjected to any additional mitigations, notices, or appeals under SEPA, except as provided in SVMC 21.60. This area is served by water, sewer, and other utilities and has a robust transportation network with easy access to State Highway 290 and Interstate 90. It is also adjacent to BNSF and Union Pacific mainlines and includes a Union Pacific spur. Learn more about the city's Planned Action Ordinance.
Brownfield Program
Spokane Valley's Brownfields Reuse Program helps minimize the risks of redeveloping a brownfield, a possibly contaminated site. The program seeks funding to conduct site assessments and cleanup activities on public and private property. It also provides technical assistance and information on statewide programs and policies. We also serve as a resource for potential applicants to the state Brownfields Revolving Loan Fund. Learn more about this program.
Other Incentive Programs
Washington State and area economic partners offer these programs to assist businesses:
Expansion & Development Incentives
The New Market Tax Credit Program attracts private capital into low-income census tracts by permitting individual and corporate investors to receive a tax credit against their federal income tax in exchange for making equity investments. Contact the City if you need local assistance with utilizing this program.
View Fact Sheet
View Qualified Equity Investment Report (June 2025)
View IRS materials and reference documents
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 recover the upfront investment costs immediately. Section 179 of the U.S. Internal Revenue Code has long allowed small businesses to deduct the cost of specific 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 and 2027. Under the new law, any sprinkler system in an existing commercial structure can deduct costs. Please consult your tax accountant on how to apply this IRS tax deduction for your building.
The federal 179D tax deduction helps building owners and design teams save money on energy-efficient upgrades. These upgrades can also help meet the requirements of Washington’s Clean Buildings Performance Standard. By using the 179D deduction, organizations can reduce the cost of projects that lower energy use and improve building performance.
Section 179D allows eligible building owners — and, for public buildings, qualifying designers such as engineers, architects, and energy consultants — to claim tax deductions for energy-efficient upgrades. These improvements can include lighting, HVAC, water-heating systems, and building envelope upgrades.
Act now to take advantage of the 179D deduction before it expires. Recent federal legislation discontinues several energy tax credits, including the 179D deduction, but with smart planning, eligible building owners still have an opportunity to secure significant tax savings.
To qualify for the deduction before the 179D cutoff date:
- Construction must begin on or before June 30, 2026.
- The project must meet the energy efficiency standards in place at the time of construction.
- You must obtain proper documentation and certification, including an energy study and allocation forms. For example, if a project involves a government-owned building, the tax deduction may need to be assigned to the designer.
Visit the U.S. Department of Energy 179D website for additional details on eligibility and requirements.
Do you want to remodel your home, add rooms, a garage, or an additional dwelling unit (granny flat or apartment above the garage)? You can qualify for a property tax exemption on the value of that new improvement for three years. An Accessory Dwelling Unit is a freestanding detached structure or an attached part of a structure that is subordinate and incidental to the principal dwelling unit and is located on the same property. It provides complete, independent living facilities exclusively for a single housekeeping unit, including permanent provision for living, sleeping, cooking, and sanitation.
Any physical improvement to single-family dwellings upon real property, including constructing an accessory dwelling unit, whether attached to or within the single-family dwelling or as a detached unit on the same real property, shall be exempt from taxation for the three assessment years after the completion of the improvement to the extent that the improvement represents thirty percent or less of the value of the original structure. SEE 6231-S2.SL for more details.
Many businesses may qualify for Washington's tax incentives, which include deferrals, reduced B&O rates, exemptions, and credits. Industries include aerospace, manufacturing, distribution, lumbar, and more. Here is a list of Washington State Department of Revenue Programs by Industry.
Commercial Property Assessed Clean Energy + Resiliency (C-PACER) is an innovative financing mechanism for commercial, industrial, agricultural, and multi-family buildings that aims to make them more efficient and resilient.
Benefits of C-PACER Financing
- Property owners can save money by lowering utility bills and energy costs
- Longer loan payback terms can make PACE-funded projects cash-positive sooner than traditional loans
- PACE loans rarely require cash up front, making them more accessible to property owners than other loans
- Lower interest rates on PACE financing make loans more affordable
- Creates local jobs and spurs economic activity through the funding of new efficiency and resiliency projects
C-PACER Application Forms
- Resolution Adopting Model Ordinance
- Model Ordinance
- Program guide
- Assessment Agreement
- Project Application Checklist
- Notice of Assessment Interest and C-Pacer Lien
- Assignment of Notice of Assessment Interest
If you need local assistance with your C-PACER investment, please contact the City.
Spokane County is home to three of Washington’s Foreign Trade Zones (FTZs).
Washington’s Foreign Trade Zones (FTZ) can offer you a tremendous competitive advantage if your company imports components for distribution or manufactures exported finished products. If you need assistance in locating within our Spokane County FTZs or doing business within the FTZ, please reach out to:
FTZ #224 - Spokane
9000 W. Airport Dr. #204
Spokane, WA 98224-9438
Organization: Spokane Airports Board
Phone: 509.455.6419
Email: todd.woodard@spokaneairports.net
Financial & Technical Assistance
Washington businesses with fewer than 50 employees can use E-Cycle Washington to recycle outdated or unwanted electronics. This free recycling program accepts computers (including laptops, desktops, and tablets), monitors, and televisions at over 220 drop-off sites across the state. Small businesses can drop off up to 10 accepted electronics at these locations for free recycling and are strongly encouraged to use this program.
Find a drop-off location on the locator website. Go to the drop-off location during business hours and give them your acceptable recycling products. This site has more program details, including contact information for E-Cycle Washington.
Small Business Flex Fund is a simple, low-interest loan. The Flex Fund offers flexible working capital through low-interest loans up to $150,000. Low rates with 60-to-72-month payment terms. No fees and interest-only payment for the first year. Funds can be used for payroll, utilities, rent, marketing and advertising, supplies, building improvements or repairs, or other qualifying business expenses. Visit the page for the qualifications.
Innovative financing for your growing business.
Revenue-based financing provides flexible upfront capital, and its payback terms are customized to your cash flow and fluctuate based on your revenue. It’s ideal for small and seasonal businesses that may not have a consistent income or require an alternative to a traditional loan.
Financing Options
About the Heritage CDE Loan Fund
The Heritage Bank Community Development Entity (HBCDE) finances businesses in economically distressed areas, breathing new life into neglected and underserved communities. Request a call or email.
Learn more about HBCDE Programs.
Washington State is one of the country's most successful exporting states. The Department of Commerce assists businesses with export contacts, advocacy, business matchmaking, risk mitigation, and market research. The Export team at Commerce can also help with consulting and travel. Qualifying companies that are new to exports or entering new markets can get up to $100,000 to offset expenses. Funded in part by the SBA's State Trade Expansion Program (STEP), the vouchers can be used to defray trade show or trade mission fees, airfare, interpreter and translation services, export training programs, and more. Find more information about exporting assistance.
CHIP connects affordable housing projects to utility systems, and can reimburse costs associated with water, sewer and stormwater improvements and waived system development charges. This includes upsizing water and sewer lines to serve increased density, and water and sewer line extensions to serve new affordable housing developments.
The Washington Economic Development Finance Authority (WEDFA) takes advantage of a special kind of federal income tax incentive, which allows it to pass on some of the benefits of state governmental financing to private enterprises and (in some cases) local governments. If your organization falls within any of the following categories, you should consider WEDFA as a possible financing source for your organization's capital:
- Manufacturing
- Processing
- Production of alternate energy
- Waste
- Disposal
- Recycling
- Water or sewage treatment
- 501(c)(3) non-profit
- Governmental
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.
At the Governor's discretion, funds may be available for reimbursement of technical assistance, planning, relocation expenses and job training. Businesses must provide economic outcomes for five years to qualify. If you feel your business might be a candidate for this fund, please contact the City for additional information.