2021 was a historic session for economic development tools with the passage of a tax increment financing tool and expansion of other economic development programs.

In the category of silver-linings, the pandemic-created recession generated a renewed focus on the need for economic development. The most significant result was the passage of HB 1189 authorizing a property-tax-based Tax Increment Financing (TIF) tool for cities, counties, and ports. Cities have sought TIF for many years and there have been efforts to pass something like it for more than a decade. We are extremely grateful for the TIF for Jobs Coalition. It was led by the Washington Economic Development Association (WEDA), which included many public and private sector partners who came together to make the case for TIF, along with our legislative champions: Rep. Davina Duerr (D–Bothell), Rep. Matt Boehnke (R–Kennewick), Sen. David Frockt (D–Seattle), Sen. Mark Mullet (D–Issaquah), and Sen. Sharon Brown (R–Kennewick). This was a huge group effort that truly paid off.

In addition to TIF, the Legislature also authorized the expansion of the Targeted Urban Area (TUA) property tax exemption via HB 1386. Initially limited to certain cities in Snohomish County, the authority is now available to any city in the state. Under a TUA, a city may grant a 10-year property tax exemption for a new industrial or manufacturing facility meeting certain employment and other requirements.

AWC staff are really excited that cities in Washington now have more tools to help them attract and retain business and even the playing field with other states that have long been able to use these kinds of economic development tools.