Incentives and Benefits for Renton Businesses
The City of Renton has created a list of several business incentive programs to support the city’s small businesses and primary employers. Renton values its local businesses and acknowledges the important economic benefits that they and their employees bring to the community. This list is compiled to offer options for consideration to our prospective client partners.
Top Five Reasons to do Business in Renton
- Renton has available, well-situated, and affordable office and manufacturing space for purchase or lease.
- No local Business & Occupation Tax for businesses with annual gross receipts of less than $1.5 million.
- Renton is home to many industry leading corporations and innovative organizations.
- Center of extensive regional and international transportation network, with Seatac Airport being just 6 miles away and Downtown Seattle just 15 minutes away.
- Great schools, affordable housing and exceptional health care.
Additional Resources and Links
Department of Revenue- Tax Incentives
Economic Development Council
Aerospace B&O Credit
Businesses who develop, design, and engineer commercial airplanes or component parts of commercial airplanes.
Provides a B&O tax credit for expenditures for aerospace preproduction development. The B&O tax credit is equal to 1.5% of qualified preproduction development expenditures.
Reduced B&O Tax Rate for Aerospace Businesses
Manufacturers and processors for hire of commercial airplanes or component parts of commercial airplanes, non-manufacturers engaged in the business of aerospace product development, certificated FAR repair stations making retail sales, and aerospace tooling manufacturers.
Businesses receive a reduced B&O tax rate (the new rate is .002904 - a reduction of 40%).
Aerospace Industry B&O Tax Credit for Property Tax Paid
Businesses that manufacture commercial airplanes or component parts of commercial airplanes.
B&O tax credit equal to the property taxes paid on new buildings, the land upon which the new building are located, and property taxes attributable to the renovation or expansion of buildings used exclusively in the manufacturing of commercial airplanes or component parts of commercial airplanes.
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No B&O tax for most businesses
Within The City of Renton there is no city Business and Occupation tax (B&O tax) for businesses with annual gross receipts of less than $1.5 million. For more information about the city's B&O tax, see Business Taxes and Fees at http://rentonwa.gov/business/default.aspx?id=41124&mid=562. Please take a look at the Washington State Incentives to see if your business also qualifies for state tax exemptions.
Businesses conducting R&D and pilot scale manufacturing in the fields of:
- Advanced Computing
- Advanced Materials
- Electronic Device Technology
- Environmental Technology
Certain construction and equipment purchases for new and expanding businesses.
Machinery and Equipment (M&E) Sales & Use Tax Exemption
- “Manufacturers and processors for hire,” performing manufacturing and research and development roles and positions.
- Testing operations on machinery, assembly lines, and for the purpose of research and development for a “manufacturer and processor for hire” are additionally covered on this exemption.
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.
Washington Customized Employment Training Program – B&O Tax Credit
All Washington employers.
Qualifying Activity and Benefit:
- Payments currently being made or arranged to be made to the Employment Training Finance Account through the Customized Employment Training. 25% payment due at completion of training and the balance within 18 months of program for customized employee training.
- Business tax credit will equal 50% of payment to Employment Training Finance Account.
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Many Renton businesses and institutions are implementing business practices that reduce their impact on the environment. Reducing facility waste output, creating alternatives to petroleum for travel, improving building energy efficiencies, and working with suppliers to reduce their impacts are some examples. The Renton City Council adopted new city strategy, titled, "Creating a Clean Economy in Renton" to support these efforts. Click here to read the business practice examples and find out how you can make a difference with your business, too. Also see the Green State Incentives below to find out how your business can help the environment and save money at the same time!
Solar Energy System Manufacturers & Wholesalers - Reduced B&O Tax rate
Manufacturers, processors for hire, or wholesalers of solar energy systems using photovoltaic modules or silicon components of these systems.
The B&O rate is lowered from 0.484 percent to 0.2904 percent
Individuals, businesses, and local government entities that generate electricity using fuel cell, wind, landfill gas, or solar energy.
Sales/use tax exemption on purchase or lease of machinery and equipment used directly in generating electricity using fuel cells, wind, landfill gas, or solar energy as the principal source of power.
Energy Production Using Solar, Methane & Wind Power - Cost Recovery Program
Individuals, businesses, and local government entities that are not in the light and power business or gas distribution business. Light and power companies may take public utility tax credit for amounts paid to participants. Participants must generate electricity on their own property with an anaerobic digester or a wind or solar energy system and apply to their light and power company for a cost recovery incentive payment.
Cost recovery on investment (up to $2,000).
Sales/Use Tax Exemption for Machinery/Equipment, Delivery Vehicles & Construction of Facilities for Retail Sales of Biofuels
Retail sellers of biodiesel fuel, alcohol fuel, and wood biomass fuel.
The purchase of machinery and equipment and the construction of facilities used directly for the retail sale of biodiesel fuel blend, E85 motor fuel, and wood biomass fuel blend are exempt from retail sales tax and use tax.
The purchase of fuel delivery vehicles and labor and service charges related to such vehicles are exempt from retail sales tax and use tax provided 75% of the fuel distributed by them is biodiesel fuel blend, E85 motor fuel, and wood biomass fuel blend.
Clean Energy Training
Washington State Centers for Excellence training programs offer a variety of courses and career training throughout the Pacific Northwest to help develop and grow skills in the area of using and working with clean energy resources.
The GreenTools program is designed to help all King County stakeholders green their built environment while addressing critical environmental issues, such as global warming, critical habitat restoration, and solid waste reduction. GreenTools provides technical assistance, grants, and hands-on training to help users create green projects efficiently and effectively.
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Renton is home to Renton Technical College (RTC) which serves a variety of different Industries. Aerospace, Automotive, Business Technology, Construction and Building Technology, Culinary Careers, Education and Human Services, (Allied) Health Careers, Manufacturing and Product Service Technology, and Technology. Many of RTC's curriculums are based around the present industry's needs creating a customizable workforce. Make sure to check out the Washington State incentives below to see how you can earn tax credits for employee training!
Washington Customized Employment Training Program - B&O Tax Credit
All Washington employers.
Qualifying and Benefit Activity:
Payments to the Employment Training Finance Account through the Customized Employment Training Program for customized employee training. Credit equals 50% of payment to Employment Training Finance Account.
Centers of Excellence (COE)
The Centers focuses on targeted industries that drives the state's economy and is built upon a reputation for fast, flexible, quality education and training programs: Aerospace, Agriculture, Allied Health, Construction Education, Energy, Homeland Security, Information and Computer Technology, International Trade Logistics, and Marine Manufacturing and Technology.
Centers are guided by industry representatives to lead collaborative and coordinated statewide education and training efforts to build a competitive workforce in a global economy. Centers will:
- Maintain an institutional reputation for innovation and responsive education and training delivery to their targeted industry.
- Act as a broker of information and resources related to their targeted industry for industry representatives, community-based organizations, economic development organizations, community and technical colleges, secondary education institutions, and four-year colleges and universities.
- Translate industry research into best practices.
- Provide system coordination, coaching, and mentoring to assist in building seamless educational and work-related systems.
- Build a competitive workforce for driver industries in Washington State.
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Small Business Assistance
Small Business Assistance
The Small Business Development Center (SBDC) helps address the needs of small businesses and strengthen Renton's economic vitality. Please click on the link below to get started! The SBDC offers no-fee, one-on-one confidential help to grow your business and one-on-one technical assistance to make sure you have the information you need to make the decisions that are right for you and your company.
Community Capital Development (CCD)
Community Capital Development is a consortium of non-profit community development organizations. This includes a community development corporation that provides training, counseling, and membership.
- Technical Assistance - Trained counselors help small businesses with all aspects of starting and running a small business, including marketing, management, finance and strategic planning. CCD helps with business plans, cash flow projections and loan applications.
- Training - Training programs are designed specifically for entrepreneurs.
- Loans - Financing to qualified small businesses and start-ups through the small business loan program.
Washington Community Alliance for Self-Help (C.A.S.H.) is a non-profit organization based in Seattle, Washington. They provide the hands-on education, in-depth support, and access to capital needed to launch and grow successful small enterprises. Serving those in our community for whom traditional business development services are out of reach, with a focus on low-income, women, and minority populations.
- Business education and training
- Peer network and support groups
- One-on-one coaching
- Microloans and matched savings accounts
- Community volunteers and market access opportunities
- Other in-depth resources
Small Business Administration (SBA)
SBA has developed many small business loan and assistance programs, special outreach efforts and initiatives to aid and inform small businesses. Services and information available through this office includes:
- Financial assistance for new or existing businesses through guaranteed loans made by area bank and non-bank lenders.
- Free counseling, advice and information on starting, better operating, or expanding a small business through (SCORE) Counselors to America's Small Business.
- Assistance to businesses owned and controlled by socially and economically disadvantaged individuals through the Minority Enterprise Development Program.
- Women's Business Ownership Representatives are available to advise women business owners.
- Special loan programs are available for businesses involved in international trade.
- Veterans can receive business counseling and information about SBA guaranteed loans.
SCORE is a nonprofit association dedicated to educating entrepreneurs and helping small businesses start, grow, and succeed nationwide. SCORE is a resource partner with the U.S. Small Business Administration (SBA), and has been mentoring small business owners for more than forty years. SCORE is a valuable network of 13,000+ volunteers who offer small business entrepreneurs confidential business counseling services at no charge.
- AT NO COST, meet with experienced professionals to talk about any aspect of small business you need.
- Meet in person or online.
- Short and long-term mentorships available.
- Group and online workshops, online templates, and tools for building a business plan and starting-up or growing a business.
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Multi-Family Housing Property Tax Exemption
Renton provides limited, eight or twelve year exemptions from property taxation for the qualified new multi-family housing located in designated residential targeted areas of Downtown and the Sunset Area . Call the Economic Development team today at (425) 430-6584 to see if you qualify!
See code 4-1-220 for more information.
Waived Fees – Owner Occupied Housing
Building permit fees; building permit plan review fees; water, surface water, and wastewater system development charges; Public Works plan review and inspection fees; fire, transportation, and parks impact mitigation fees are all fees and charges that may be waived. Fees may be waived to encourage owner-occupied housing in the designated zones laid out by Renton’s City Code and the Urban Center Comprehensive Plan. Please see the link below for details. Applicable to those in Downtown and Sunset area (CV and R-14 zones)
See code 4-1-210 for more information
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Warehouse Tax Incentive
Wholesalers, retail distribution centers, third-party warehousers, cold storage warehousers. Sales tax paid on:
- Construction of a 200,000 square foot warehouse or distribution center or a grain elevator with a one million bushel capacity.
- Construction or expansion of a cold storage warehouse by at least 25,000 square feet.
A remittance of 100% of state sales tax (6.5%) paid on construction of qualifying structures; 50% remittance for state sales tax paid on qualifying equipment.
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