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Solar & Photovoltaic Manufacturing Opportunities in Southwest Washington August 2011
Jeanie Ashe Director of Business Recruitment 805 Broadway, Suite 412 Vancouver, WA 98660
P: (360) 567-3180 E: [email protected]
http://www.credc.org
Columbia River Economic Development Council
Solar & Photovoltaic Manufacturing Opportunities in Southwest Washington
This information was compiled by the Columbia River Economic Development Council from sources deemed reliable. While the CREDC has attempted, in good faith, to ensure the information presented is accurate, there may be inadvertent (technical and factual) inaccuracies with the information presented. All information should be verified .
CLARK COUNTY OVERVIEW Located on the Pacific Rim and bridging the states of Oregon and Washington, the Portland-Vancouver metropolitan region is a vibrant and attractive business location. The largest source of economic growth for the region is semiconductors and electronic manufacturing. The area has over 2,000 firms employing 70,000 technology workers in the Silicon Forest. Pure water, inexpensive power and a skilled electronic manufacturing workforce are reasons firms are attracted to the area in addition to the area’s easy access to the electronics industry in California and Asia.
POPULATION SUMMARY Portland - Vancouver PMSA Clark County
2,191,910 435,600
Battle Ground
17,400
Camas
17,210
La Center
2,575
Ridgefield
4,370
Vancouver
165,500
Washougal
14,050
Source: Bureau of Census and Washington State O FM – 2010
With the expanding economy, affordable housing, quality schools, and exceptional recreational and cultural amenities, Clark County is expected to continue stable economic growth well into the future.
COLUMBIA RIVER ECONOMIC DEVELOPMENT COUNCIL
Clark County and its communities of Vancouver, Camas, Battle Ground, Washougal, Ridgefield and La Center offer a diversity of lifestyles ranging from metropolitan to suburban. The Portland-Vancouver metropolitan area has a population of over two million. Clark County’s population is 435,600 – almost 20 percent of the PMSA.
Manufacturing Opportunities in Southwest Washington
Clark County is one of seven counties included in the PortlandVancouver, Metropolitan Statistical Area (PMSA). Clark County offers workers and their families the advantages of a major metropolitan city combined with affordable housing and quality primary and secondary education.
CLARK COUNTY’S HIGH TECH ADVANTAGE Clark County is home to 340 high-technology companies that employ more than 8,800 workers. Included among these are: Linear Technology, Sharp Microelectronics of the Americas, Sharp Laboratories, nLight Photonics, SEH America, and WaferTech. Washington's tax environment, low cost of living and quality of life are major factors in businesses moving to Clark County. In addition, most businesses find it valuable to be near major transportation routes. Interstate 5 and 205 run north and south through the county, enabling easy travel to Portland, California, Seattle and Canada. The Portland International Airport is within 12 minutes travel time offering daily non-stops to the Pacific Rim as well as most major airports in the U.S.
Employees
Intel RadiSys Corp. TriQuint Semiconductors Tektronix, Inc. Siltronic SEH America WaferTech LLC Lattice Semiconductor Maxim Integrated Products IBM InFocus Corp. Electro Scientific Industries Credence Systems Planar Systems, Inc. FEI Company Sharp Microlectronics and Lab Integrated Device Technology (IDT) Microchip Sun Microsystems Epson Portland, Inc. Synetics Solutions, Inc.
15,500 2,700 2,072 2,000 1,300 1,190 1,100 1,008 1,000 900 739 513 450 433 400 380 370 300 300 285 250
LABOR FORCE Companies locating within Clark County, Washington have access to a labor force of more than one million workers within a 30 mile radius. Clark County’s competitive labor costs are an additional advantage to local firms. Labor Force
Portland-Vancouver Metro
Clark County, WA
Civilian Labor Force Unemployment Unemployment Rate
1,060,200 99,880 10.4%
221,920 28,960 13.1%
Source: Bureau of Labor Statistics and WA State Employment Security Department (November 2010)
Manufacturing Opportunities in Southwest Washington
Employer
COLUMBIA RIVER ECONOMIC DEVELOPMENT COUNCIL
REGIONAL AREA ELECTRONICS COMPANIES
THE COMMUTING LABOR FORCE Nearly 60,000 Clark County residents commute daily to jobs in the Oregon portion of the metropolitan area. The CREDC contracted for a scientific study of this labor pool to determine job and skill characteristics. One of the most important findings is that over 80 percent of Clark County commuters to Oregon are likely to take a Clark County job of equal or less pay if one were available. Thus, even at low levels of unemployment there exists an available labor pool for firms selecting a Clark County location.
Entry Hourly Wage
Average Hourly Wage
Mechanical Engineers Electrical Engineers Electrical and Electronic Engineering Technicians Electromechanical Equipment Assemblers Structural Metal Fabricators and Fitters Electrical and Electronic Equipment Assemblers Helpers/Production Workers
$27.31 $27.95 $16.71 $11.23 $12.00 $9.93 $9.27
$41.75 $41.93 $27.28 $18.30 $18.52 $14.19 $13.50
Source: WA State Employment Security Department (March 2011)
REGIONAL EDUCATION FOCUS The Portland – Vancouver metro offers a wide range of excellent educational opportunities for the manufacturing industries. There are 25 public and private colleges and universities in the area offering professional and technical degrees. • Washington State University-Vancouver Science and Engineering Institute, located in Clark County, offers undergraduate and graduate education in computer science, the biologic sciences, and mechanical and electrical engineering. The offerings are focused on servicing the needs of the region’s semiconductor and microelectronics industry. • Oregon Health & Science University (OHSU), located in Portland, offers programs in health care, biomedical science, environmental engineering and computer science. It educates more than 3,500 students, interns, residents, fellows and clinical trainees.
Manufacturing Opportunities in Southwest Washington
Occupation
COLUMBIA RIVER ECONOMIC DEVELOPMENT COUNCIL
WAGES The Clark County Average Annual Wage3 is $43,472. Wages for the Clark County area are listed below. Additional wage information can be found at the Washington State Employment Security Departmenti website.
• The Oregon Graduate Institute of Science and Technology (OGI), a primary provider of high technology engineering education and research, is located within 25 minutes of Clark County. Now part of OHSU, OGI is a private graduate-only institution that awards masters and doctoral degrees. In addition, it provides continuing professional education in engineering and science disciplines. • At Oregon State University (OSU), located 1.5 hours south of Portland, the state has invested in a center for nanotechnology research called the Oregon Nanoscience and Microtechnologies Institute (ONAMI). A number of private companies such as Intel, IBM, and HP are partners in this venture. OSU also offers a strong complement of undergraduate and graduate-level engineering disciplines. The region boasts four community colleges: Clackamas Community College in Oregon City; Mt. Hood Community College in Gresham; Clark College in Vancouver, Washington; and Portland Community College (PCC). Combined, the community college systems operate 18 centers and six main campuses, with an annual enrollment of more than 190,000 students. The local community colleges are the center of workforce development activities in the region.
Manufacturing Opportunities in Southwest Washington
Photo courtesy of Washington State University – Vancouver
COLUMBIA RIVER ECONOMIC DEVELOPMENT COUNCIL
WORKFORCE TRAINING Several options are available to you for workforce training. The Southwest Workforce Development Council (SWWDC) can assist you in developing your new and existing workforce by connecting you with the resources to leverage investment in human capital. Through strong partnerships with Clark College and others, the CREDC can help develop and deliver training that is customized to your needs and complementary to your company culture. As you grow your workforce, some positions may also qualify for wage subsidies of up to 50 percent of wages for up to six months for on-the-job training.
TRANSPORTATION INFRASTRUCTURE Clark County, Washington is the premier Pacific Rim Gateway to the Northwest, Midwest/Western United States, Canada and Asia. It benefits from easy access to the national rail network with dual carrier service provided by the Burlington Northern Santa Fe (BNSF) and the Union Pacific Railroads, interstate freeways (I-5 and 1-84) and Portland International Airport (PDX). The area’s strategic position, complimented by its transportation infrastructure allowing for easy access to domestic and international markets, makes the region the number one choice for manufacturers. Ground Freight can be delivered to northern California, Vancouver B.C. and Idaho overnight from Vancouver, Washington. Vancouver is also the transfer and switching center for three major railroads and the interchange for all points south, north and east on the interstate freeways. Air Freight Several air freight businesses serve the Portland – Vancouver area through Portland International Airport located just minutes away. A list of air freight providers can be found on the Port of Portland’s website. Rail
More than 20 ocean carriers provide service to both the Port of Vancouver and the Port of Portland. Shipment service is provided to Asia, South America, Australia, Europe, Africa and the Mediterranean. Additional information can be found at the Port of Vancouver and Port of Portland websites.
TAXES The Portland-Vancouver market is in two separate states. Depending upon in which state you locate, you will be required to pay taxes based on that state's tax structure. Determining which tax structure is more favorable to your business requires careful consideration and advice from your tax advisor. Oregon has no sales tax but has individual and business income tax. Washington State does not impose a corporate income tax, unitary tax, or personal income tax, nor does it tax dividends, interest or capital gains. Washington does have a sales tax as well as a business and occupation tax on gross business receipts. Certain tax incentives may apply to reduce business and occupation and sales tax assessments.
COLUMBIA RIVER ECONOMIC DEVELOPMENT COUNCIL
Shipping
Manufacturing Opportunities in Southwest Washington
Clark County, specifically the Port of Vancouver, is served by BNSF and Union Pacific Railroad.
BUSINESS TAX SUMMARY TABLE TAX
Clark County, Washington
Corporate Excise Tax Personal Income Tax State Business Tax
None None Based on sales for all business activity within the state. Manufacturing tax rate is 0.484% based on gross sales. State & Local Retail Sales Tax 8.2% Real & Personal Property Tax Average rate. $11.03 per $1,000 of assessed value. Unemployment Insurance Tax Average 3.26% on the first $37,300 in wages. Industrial Insurance Rates are based on business classification and experience. (Worker’s Compensation) Average Misc. Manufacturing $0.7582 per worker hour. Industrial Insurance Rates (Workers’ Compensation) Workers’ compensation rates are based on business classification and experience. Washington is the only state with worker's compensation tax rates based on the hour worked rather than per $100 wages paid. Therefore, there is not an inflationary increase built into the system when wages increase. Insurance is not paid for hours the worker is off the job including sick leave, vacation or holiday hours, and leaves of absence. Unemployment Insurance
Solar Energy Systems Manufacturing Reduced B&O Tax Companies engaged in the manufacturing of solar energy systems using photovoltaic modules, solar grade silicon, silicon solar wafers, silicon solar cells, thin film solar devices, or compound semiconductor solar wafers to be used exclusively in components of solar energy systems using photovoltaic modules receive a reduced B&O Tax rate of 0.275 percent, a reduction from the normal rate of 0.294 percent. The B&O Tax rate reduction also applies to companies engaged in wholesale sales of the aforementioned manufactured items manufactured by the seller. Semiconductor Industry Sales and Use Tax Exemption on Gasses and Chemicals The sales of gasses and chemicals used in the growth and processing of semiconductor materials, silicon solar wafers, silicon solar cells, thin film devices, and compound semiconductor solar wafers are exempt from sales tax.
Manufacturing Opportunities in Southwest Washington
MANUFACTURING TAX DEFERRALS, WAIVERS AND EXEMPTIONS Semiconductor Materials Manufacturing Reduced B&O Tax Manufacturers or processors for hire of semiconductor materials receive a reduced B&O Tax rate of 0.275 percent, a reduction from the normal rate of 0.294 percent.
COLUMBIA RIVER ECONOMIC DEVELOPMENT COUNCIL
Washington provides a high level of benefits to workers – among the top third in the nation. Employers pay taxes on the first $37,300 of a worker’s wages. The average tax rate is 3.26 percent. The rates vary depending on the employer’s rate class.
High Technology B&O Tax Credit for R&D Spending An annual credit of up to $2 million is allowed for businesses that perform research and development in specified high technology categories and meet minimum expense requirements. High Technology Sales and Use Tax Deferral/Waiver Businesses involved in research and development may be eligible for sales and use tax deferral/waiver if they start new research and development, pilot scale manufacturing operations, or expand/diversify a current operation by renovating or equipping an existing facility. High Unemployment County Sales Tax Deferral/Waiver for Manufacturing Facilities This program grants a deferral of retail sales and use tax on qualified labor and construction materials costs for certain businesses and activities located in high unemployment counties, including Clark County, Washington. Qualified costs include those related to new construction, expansion, or rehabilitation of a facility that supports the growth of manufacturing industry. Manufacturing Sales and Use Tax Exemption on Machinery and Equipment Manufacturers, processors for hire, and manufacturers who perform research and development are not required to pay the sales or use tax on machinery and equipment used directly in the manufacturing or research operations.
R&D
Solar Energy Systems Manufacturing Reduced B&O Tax
Semiconductor Sales Tax Exemption on Gasses and Chemicals
B&O Tax Credit for R&D Spending
High Technology Sales Tax Deferral/Waiver
High Unemployment Sales Tax Deferral/Waiver for Manufacturing Facilities
Manufacturing Sales Tax Exemption on Machinery and Equipment
Tax Advantages Semiconductor Materials Reduced B&O Tax Rate
Manufacturing Opportunities in Southwest Washington
Semiconductor
General Manufacturing (Nonsemiconductor/solar) COLUMBIA RIVER ECONOMIC DEVELOPMENT COUNCIL
Manufacturing Activities
SOLAR END-USER INCENTIVES In an effort to promote renewable energy and sustainability, Washington was the first state to implement a statewide renewable energy production incentive (SB 5101). As a result, utilities pay grid-tied PV system owners $0.15-0.54/kWh for all produced electricity. The base rate of $0.15 is increased 20 percent if the inverter is manufactured in Washington State. The base rate is increased 140 percent if the solar modules are manufactured in Washington State. If the inverter and modules are manufactured in Washington State, the owner receives the base rate increase realized under each device. The incentive expires in 2020 and payout is capped at $5,000 per year. For community solar projects, the base rate for power generated by grid-tied PV systems is $0.30/kWh. The same manufacturing base rate incentive percentages apply as with individual grid-tied PV systems. The payout for the soar community project is also capped at $5,000 per year and expires in 2020.
Clark Public Utilities -Industrial Schedule 85 Energy Charge Sep - Mar Energy Charge (per kWh): $0.0489 Apr - Aug Energy Charge (per kWh): $0.0436 Demand Charge
Transmission (per kW): $4.54 Primary Delivery (per kW): $5.88 Secondary Delivery (per kW): $6.69
COLUMBIA RIVER ECONOMIC DEVELOPMENT COUNCIL
The primary electric power supplier in Clark County is Clark Public Utilities, a public power company. The utility is a cost of service provider and offers some of the most competitive power prices in the United States. In addition, given the density of manufacturing investment in their service areas, the utility has a great deal of experience with dealing with the power quality and dependability issues important to manufacturers. Clark Public Utility’s average rate is $0.063 per kWh.
Manufacturing Opportunities in Southwest Washington
INFRASTRUCTURE Electrical Power
Water & Sewer City governments provide sewer and water service to residents within incorporated areas and some unincorporated areas of the County. Hazel Dell Sewer District also provides sewer service to unincorporated areas. Clark Public Utilities provides some water service. The CREDC will work with you to calculate specific cost estimates once the company has narrowed its site options and provide more specific information concerning water and sewer needs. Water Rates (City of Vancouver) Monthly Base Charge Meter Size Charge a. 5/8 x 3/4 $5.23 b. 3/4 inch $6.92 c. 1 inch $10.57 d.1-1/2 inch $19.67 e. 2 inch $30.47 f. 3 inch $55.86 Volume Charge
Commercial: Industrial:
$1.27/ccf $1.32/ccf
City Denver, CO Sacramento, CA San Francisco, CA Portland, OR Tacoma, WA Seattle, WA Vancouver, WA
Composite Index 103.4 116.2 152.5 113.0 109.9 120.2 95.2
Manufacturing Opportunities in Southwest Washington
LIVABILITY Both businesses and their employees will enjoy the high standard yet low cost of living in Clark County, Washington. The ACCRA Cost of Living Index measures differences between areas in the cost of consumer goods and services, excluding taxes and nonconsumer expenditures. Vancouver’s cost of living (95.2) is below the national average (100) and among the lowest on the West Coast for second quarter 2010.
COLUMBIA RIVER ECONOMIC DEVELOPMENT COUNCIL
Sewer Rates (City of Vancouver) Volume Charge Commercial: $4.23/ccf Industrial: $4.38/ccf Electronics: $3.22/ccf
Clark County and its communities of Battle Ground, Camas, Ridgefield, Vancouver and Washougal offer a diversity of lifestyles ranging from metropolitan to suburban. The median sale price of a home in Clark County was $213,200 in third quarter 2010. Clark County offers a number of recreational opportunities including federal, state, county and city parks, trails and wildlife areas. The Clark County Fair and the Fourth of July Festival are just two cultural events that the County offers. Portland’s metropolitan conveniences are just minutes away.
Manufacturing Opportunities in Southwest Washington
www.workforceexplorer.com/
COLUMBIA RIVER ECONOMIC DEVELOPMENT COUNCIL
i
Jeanie Ashe Director of Business Recruitment 805 Broadway, Suite 412 Vancouver, WA 98660
P: (360) 567-3180 E: [email protected]
http://www.credc.org
Columbia River Economic Development Council
Solar & Photovoltaic Manufacturing Opportunities in Southwest Washington
This information was compiled by the Columbia River Economic Development Council from sources deemed reliable. While the CREDC has attempted, in good faith, to ensure the information presented is accurate, there may be inadvertent (technical and factual) inaccuracies with the information presented. All information should be verified .
CLARK COUNTY OVERVIEW Located on the Pacific Rim and bridging the states of Oregon and Washington, the Portland-Vancouver metropolitan region is a vibrant and attractive business location. The largest source of economic growth for the region is semiconductors and electronic manufacturing. The area has over 2,000 firms employing 70,000 technology workers in the Silicon Forest. Pure water, inexpensive power and a skilled electronic manufacturing workforce are reasons firms are attracted to the area in addition to the area’s easy access to the electronics industry in California and Asia.
POPULATION SUMMARY Portland - Vancouver PMSA Clark County
2,191,910 435,600
Battle Ground
17,400
Camas
17,210
La Center
2,575
Ridgefield
4,370
Vancouver
165,500
Washougal
14,050
Source: Bureau of Census and Washington State O FM – 2010
With the expanding economy, affordable housing, quality schools, and exceptional recreational and cultural amenities, Clark County is expected to continue stable economic growth well into the future.
COLUMBIA RIVER ECONOMIC DEVELOPMENT COUNCIL
Clark County and its communities of Vancouver, Camas, Battle Ground, Washougal, Ridgefield and La Center offer a diversity of lifestyles ranging from metropolitan to suburban. The Portland-Vancouver metropolitan area has a population of over two million. Clark County’s population is 435,600 – almost 20 percent of the PMSA.
Manufacturing Opportunities in Southwest Washington
Clark County is one of seven counties included in the PortlandVancouver, Metropolitan Statistical Area (PMSA). Clark County offers workers and their families the advantages of a major metropolitan city combined with affordable housing and quality primary and secondary education.
CLARK COUNTY’S HIGH TECH ADVANTAGE Clark County is home to 340 high-technology companies that employ more than 8,800 workers. Included among these are: Linear Technology, Sharp Microelectronics of the Americas, Sharp Laboratories, nLight Photonics, SEH America, and WaferTech. Washington's tax environment, low cost of living and quality of life are major factors in businesses moving to Clark County. In addition, most businesses find it valuable to be near major transportation routes. Interstate 5 and 205 run north and south through the county, enabling easy travel to Portland, California, Seattle and Canada. The Portland International Airport is within 12 minutes travel time offering daily non-stops to the Pacific Rim as well as most major airports in the U.S.
Employees
Intel RadiSys Corp. TriQuint Semiconductors Tektronix, Inc. Siltronic SEH America WaferTech LLC Lattice Semiconductor Maxim Integrated Products IBM InFocus Corp. Electro Scientific Industries Credence Systems Planar Systems, Inc. FEI Company Sharp Microlectronics and Lab Integrated Device Technology (IDT) Microchip Sun Microsystems Epson Portland, Inc. Synetics Solutions, Inc.
15,500 2,700 2,072 2,000 1,300 1,190 1,100 1,008 1,000 900 739 513 450 433 400 380 370 300 300 285 250
LABOR FORCE Companies locating within Clark County, Washington have access to a labor force of more than one million workers within a 30 mile radius. Clark County’s competitive labor costs are an additional advantage to local firms. Labor Force
Portland-Vancouver Metro
Clark County, WA
Civilian Labor Force Unemployment Unemployment Rate
1,060,200 99,880 10.4%
221,920 28,960 13.1%
Source: Bureau of Labor Statistics and WA State Employment Security Department (November 2010)
Manufacturing Opportunities in Southwest Washington
Employer
COLUMBIA RIVER ECONOMIC DEVELOPMENT COUNCIL
REGIONAL AREA ELECTRONICS COMPANIES
THE COMMUTING LABOR FORCE Nearly 60,000 Clark County residents commute daily to jobs in the Oregon portion of the metropolitan area. The CREDC contracted for a scientific study of this labor pool to determine job and skill characteristics. One of the most important findings is that over 80 percent of Clark County commuters to Oregon are likely to take a Clark County job of equal or less pay if one were available. Thus, even at low levels of unemployment there exists an available labor pool for firms selecting a Clark County location.
Entry Hourly Wage
Average Hourly Wage
Mechanical Engineers Electrical Engineers Electrical and Electronic Engineering Technicians Electromechanical Equipment Assemblers Structural Metal Fabricators and Fitters Electrical and Electronic Equipment Assemblers Helpers/Production Workers
$27.31 $27.95 $16.71 $11.23 $12.00 $9.93 $9.27
$41.75 $41.93 $27.28 $18.30 $18.52 $14.19 $13.50
Source: WA State Employment Security Department (March 2011)
REGIONAL EDUCATION FOCUS The Portland – Vancouver metro offers a wide range of excellent educational opportunities for the manufacturing industries. There are 25 public and private colleges and universities in the area offering professional and technical degrees. • Washington State University-Vancouver Science and Engineering Institute, located in Clark County, offers undergraduate and graduate education in computer science, the biologic sciences, and mechanical and electrical engineering. The offerings are focused on servicing the needs of the region’s semiconductor and microelectronics industry. • Oregon Health & Science University (OHSU), located in Portland, offers programs in health care, biomedical science, environmental engineering and computer science. It educates more than 3,500 students, interns, residents, fellows and clinical trainees.
Manufacturing Opportunities in Southwest Washington
Occupation
COLUMBIA RIVER ECONOMIC DEVELOPMENT COUNCIL
WAGES The Clark County Average Annual Wage3 is $43,472. Wages for the Clark County area are listed below. Additional wage information can be found at the Washington State Employment Security Departmenti website.
• The Oregon Graduate Institute of Science and Technology (OGI), a primary provider of high technology engineering education and research, is located within 25 minutes of Clark County. Now part of OHSU, OGI is a private graduate-only institution that awards masters and doctoral degrees. In addition, it provides continuing professional education in engineering and science disciplines. • At Oregon State University (OSU), located 1.5 hours south of Portland, the state has invested in a center for nanotechnology research called the Oregon Nanoscience and Microtechnologies Institute (ONAMI). A number of private companies such as Intel, IBM, and HP are partners in this venture. OSU also offers a strong complement of undergraduate and graduate-level engineering disciplines. The region boasts four community colleges: Clackamas Community College in Oregon City; Mt. Hood Community College in Gresham; Clark College in Vancouver, Washington; and Portland Community College (PCC). Combined, the community college systems operate 18 centers and six main campuses, with an annual enrollment of more than 190,000 students. The local community colleges are the center of workforce development activities in the region.
Manufacturing Opportunities in Southwest Washington
Photo courtesy of Washington State University – Vancouver
COLUMBIA RIVER ECONOMIC DEVELOPMENT COUNCIL
WORKFORCE TRAINING Several options are available to you for workforce training. The Southwest Workforce Development Council (SWWDC) can assist you in developing your new and existing workforce by connecting you with the resources to leverage investment in human capital. Through strong partnerships with Clark College and others, the CREDC can help develop and deliver training that is customized to your needs and complementary to your company culture. As you grow your workforce, some positions may also qualify for wage subsidies of up to 50 percent of wages for up to six months for on-the-job training.
TRANSPORTATION INFRASTRUCTURE Clark County, Washington is the premier Pacific Rim Gateway to the Northwest, Midwest/Western United States, Canada and Asia. It benefits from easy access to the national rail network with dual carrier service provided by the Burlington Northern Santa Fe (BNSF) and the Union Pacific Railroads, interstate freeways (I-5 and 1-84) and Portland International Airport (PDX). The area’s strategic position, complimented by its transportation infrastructure allowing for easy access to domestic and international markets, makes the region the number one choice for manufacturers. Ground Freight can be delivered to northern California, Vancouver B.C. and Idaho overnight from Vancouver, Washington. Vancouver is also the transfer and switching center for three major railroads and the interchange for all points south, north and east on the interstate freeways. Air Freight Several air freight businesses serve the Portland – Vancouver area through Portland International Airport located just minutes away. A list of air freight providers can be found on the Port of Portland’s website. Rail
More than 20 ocean carriers provide service to both the Port of Vancouver and the Port of Portland. Shipment service is provided to Asia, South America, Australia, Europe, Africa and the Mediterranean. Additional information can be found at the Port of Vancouver and Port of Portland websites.
TAXES The Portland-Vancouver market is in two separate states. Depending upon in which state you locate, you will be required to pay taxes based on that state's tax structure. Determining which tax structure is more favorable to your business requires careful consideration and advice from your tax advisor. Oregon has no sales tax but has individual and business income tax. Washington State does not impose a corporate income tax, unitary tax, or personal income tax, nor does it tax dividends, interest or capital gains. Washington does have a sales tax as well as a business and occupation tax on gross business receipts. Certain tax incentives may apply to reduce business and occupation and sales tax assessments.
COLUMBIA RIVER ECONOMIC DEVELOPMENT COUNCIL
Shipping
Manufacturing Opportunities in Southwest Washington
Clark County, specifically the Port of Vancouver, is served by BNSF and Union Pacific Railroad.
BUSINESS TAX SUMMARY TABLE TAX
Clark County, Washington
Corporate Excise Tax Personal Income Tax State Business Tax
None None Based on sales for all business activity within the state. Manufacturing tax rate is 0.484% based on gross sales. State & Local Retail Sales Tax 8.2% Real & Personal Property Tax Average rate. $11.03 per $1,000 of assessed value. Unemployment Insurance Tax Average 3.26% on the first $37,300 in wages. Industrial Insurance Rates are based on business classification and experience. (Worker’s Compensation) Average Misc. Manufacturing $0.7582 per worker hour. Industrial Insurance Rates (Workers’ Compensation) Workers’ compensation rates are based on business classification and experience. Washington is the only state with worker's compensation tax rates based on the hour worked rather than per $100 wages paid. Therefore, there is not an inflationary increase built into the system when wages increase. Insurance is not paid for hours the worker is off the job including sick leave, vacation or holiday hours, and leaves of absence. Unemployment Insurance
Solar Energy Systems Manufacturing Reduced B&O Tax Companies engaged in the manufacturing of solar energy systems using photovoltaic modules, solar grade silicon, silicon solar wafers, silicon solar cells, thin film solar devices, or compound semiconductor solar wafers to be used exclusively in components of solar energy systems using photovoltaic modules receive a reduced B&O Tax rate of 0.275 percent, a reduction from the normal rate of 0.294 percent. The B&O Tax rate reduction also applies to companies engaged in wholesale sales of the aforementioned manufactured items manufactured by the seller. Semiconductor Industry Sales and Use Tax Exemption on Gasses and Chemicals The sales of gasses and chemicals used in the growth and processing of semiconductor materials, silicon solar wafers, silicon solar cells, thin film devices, and compound semiconductor solar wafers are exempt from sales tax.
Manufacturing Opportunities in Southwest Washington
MANUFACTURING TAX DEFERRALS, WAIVERS AND EXEMPTIONS Semiconductor Materials Manufacturing Reduced B&O Tax Manufacturers or processors for hire of semiconductor materials receive a reduced B&O Tax rate of 0.275 percent, a reduction from the normal rate of 0.294 percent.
COLUMBIA RIVER ECONOMIC DEVELOPMENT COUNCIL
Washington provides a high level of benefits to workers – among the top third in the nation. Employers pay taxes on the first $37,300 of a worker’s wages. The average tax rate is 3.26 percent. The rates vary depending on the employer’s rate class.
High Technology B&O Tax Credit for R&D Spending An annual credit of up to $2 million is allowed for businesses that perform research and development in specified high technology categories and meet minimum expense requirements. High Technology Sales and Use Tax Deferral/Waiver Businesses involved in research and development may be eligible for sales and use tax deferral/waiver if they start new research and development, pilot scale manufacturing operations, or expand/diversify a current operation by renovating or equipping an existing facility. High Unemployment County Sales Tax Deferral/Waiver for Manufacturing Facilities This program grants a deferral of retail sales and use tax on qualified labor and construction materials costs for certain businesses and activities located in high unemployment counties, including Clark County, Washington. Qualified costs include those related to new construction, expansion, or rehabilitation of a facility that supports the growth of manufacturing industry. Manufacturing Sales and Use Tax Exemption on Machinery and Equipment Manufacturers, processors for hire, and manufacturers who perform research and development are not required to pay the sales or use tax on machinery and equipment used directly in the manufacturing or research operations.
R&D
Solar Energy Systems Manufacturing Reduced B&O Tax
Semiconductor Sales Tax Exemption on Gasses and Chemicals
B&O Tax Credit for R&D Spending
High Technology Sales Tax Deferral/Waiver
High Unemployment Sales Tax Deferral/Waiver for Manufacturing Facilities
Manufacturing Sales Tax Exemption on Machinery and Equipment
Tax Advantages Semiconductor Materials Reduced B&O Tax Rate
Manufacturing Opportunities in Southwest Washington
Semiconductor
General Manufacturing (Nonsemiconductor/solar) COLUMBIA RIVER ECONOMIC DEVELOPMENT COUNCIL
Manufacturing Activities
SOLAR END-USER INCENTIVES In an effort to promote renewable energy and sustainability, Washington was the first state to implement a statewide renewable energy production incentive (SB 5101). As a result, utilities pay grid-tied PV system owners $0.15-0.54/kWh for all produced electricity. The base rate of $0.15 is increased 20 percent if the inverter is manufactured in Washington State. The base rate is increased 140 percent if the solar modules are manufactured in Washington State. If the inverter and modules are manufactured in Washington State, the owner receives the base rate increase realized under each device. The incentive expires in 2020 and payout is capped at $5,000 per year. For community solar projects, the base rate for power generated by grid-tied PV systems is $0.30/kWh. The same manufacturing base rate incentive percentages apply as with individual grid-tied PV systems. The payout for the soar community project is also capped at $5,000 per year and expires in 2020.
Clark Public Utilities -Industrial Schedule 85 Energy Charge Sep - Mar Energy Charge (per kWh): $0.0489 Apr - Aug Energy Charge (per kWh): $0.0436 Demand Charge
Transmission (per kW): $4.54 Primary Delivery (per kW): $5.88 Secondary Delivery (per kW): $6.69
COLUMBIA RIVER ECONOMIC DEVELOPMENT COUNCIL
The primary electric power supplier in Clark County is Clark Public Utilities, a public power company. The utility is a cost of service provider and offers some of the most competitive power prices in the United States. In addition, given the density of manufacturing investment in their service areas, the utility has a great deal of experience with dealing with the power quality and dependability issues important to manufacturers. Clark Public Utility’s average rate is $0.063 per kWh.
Manufacturing Opportunities in Southwest Washington
INFRASTRUCTURE Electrical Power
Water & Sewer City governments provide sewer and water service to residents within incorporated areas and some unincorporated areas of the County. Hazel Dell Sewer District also provides sewer service to unincorporated areas. Clark Public Utilities provides some water service. The CREDC will work with you to calculate specific cost estimates once the company has narrowed its site options and provide more specific information concerning water and sewer needs. Water Rates (City of Vancouver) Monthly Base Charge Meter Size Charge a. 5/8 x 3/4 $5.23 b. 3/4 inch $6.92 c. 1 inch $10.57 d.1-1/2 inch $19.67 e. 2 inch $30.47 f. 3 inch $55.86 Volume Charge
Commercial: Industrial:
$1.27/ccf $1.32/ccf
City Denver, CO Sacramento, CA San Francisco, CA Portland, OR Tacoma, WA Seattle, WA Vancouver, WA
Composite Index 103.4 116.2 152.5 113.0 109.9 120.2 95.2
Manufacturing Opportunities in Southwest Washington
LIVABILITY Both businesses and their employees will enjoy the high standard yet low cost of living in Clark County, Washington. The ACCRA Cost of Living Index measures differences between areas in the cost of consumer goods and services, excluding taxes and nonconsumer expenditures. Vancouver’s cost of living (95.2) is below the national average (100) and among the lowest on the West Coast for second quarter 2010.
COLUMBIA RIVER ECONOMIC DEVELOPMENT COUNCIL
Sewer Rates (City of Vancouver) Volume Charge Commercial: $4.23/ccf Industrial: $4.38/ccf Electronics: $3.22/ccf
Clark County and its communities of Battle Ground, Camas, Ridgefield, Vancouver and Washougal offer a diversity of lifestyles ranging from metropolitan to suburban. The median sale price of a home in Clark County was $213,200 in third quarter 2010. Clark County offers a number of recreational opportunities including federal, state, county and city parks, trails and wildlife areas. The Clark County Fair and the Fourth of July Festival are just two cultural events that the County offers. Portland’s metropolitan conveniences are just minutes away.
Manufacturing Opportunities in Southwest Washington
www.workforceexplorer.com/
COLUMBIA RIVER ECONOMIC DEVELOPMENT COUNCIL
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