Tax credits could help Project Chinook

MOSES LAKE — A proposed Senate bill allowing certain new companies to receive tax credits could help a range of businesses eyeing Grant County.

One of those businesses is a BMW parts manufacturer, SGL Automotive Carbon Fibers, which is considering the area for a new facility, creating roughly 180 new jobs.

The joint-venture company, dubbed “Project Chinook,” hasn’t formally announced a decision.

Senate Bill 6757 was reintroduced during the first day of the Legislature’s special session on March 15.

If approved, it would allow qualifying businesses to receive either B&O or public utility tax credits that could carry over to the next year, explained Jon Smith, communications and research director with the Grant County Economic Development Council, on Thursday.

The EDC is encouraging the bill’s passage, as it would help businesses save money, he said.

The total credit can be up to $25 million, if it’s equal to 5 percent of the actual capital cost of the project, he said.

“This is just a general bill, but just from the reading of it, there’s no reason why Project Chinook or other projects we’re working on wouldn’t be able to take advantage of it,” Smith said.

The bill concerns the designation and support of projects of statewide significance.

According to the bill, the projects are defined as being “a private development with private capital investment in manufacturing, research and development, a computer data center, renewable energy generation or facilities to store and handle goods moved through Washington ports including but not limited to grain elevators, cranes and cargo handling facilities.”

Construction on the businesses can start any time this year and any time in 2011, Smith said.

“It’s designed to help provide a little recognition of the way the economy is now, to help projects wanting to move forward,” he commented. The bill was put forth at the request of Gov. Christine Gregoire. Its prime sponsors are Sen. Karen Fraser, D-Olympia, Sen. Jim Kastama, D-Puyallup, Sen. Derek Kilmer, D-Gig Harbor, Sen. Paull Shin, D-Edmonds and Sen. Rosemary McAuliffe, D-Bothell.

Moses Lake Mayor Jon Lane said the Moses Lake Police Department will likely use the firing range in Ephrata or look at different areas if the company does come to the area because the range is near the proposed plant site.

Using the Ephrata range is the most viable option, he said.

The company was negotiating a power sales contract with the Grant County PUD in December.

This week, the utility was waiting for an answer, said Sarah Morford, a Grant PUD spokesperson.

She heard several times an answer “could be coming” regarding the agreement, but wasn’t sure when, she said.

In March, the company received a $1.5 million loan and a $500,000 grant from the state Community Economic Revitalization Board to build a new electrical substation and transmission line.