Solar panel parts manufacturing receives incentive to build in Walla Walla County

Walla Walla legislator’s bill could bring new family-wage jobs to Southeast Washington

WALLA WALLA—A plant that will manufacture polysilicon components of solar panels received an incentive to build in the Wallula area, thanks to a bill sponsored by Rep. Bill Grant (D-Walla Walla) and signed into law by Gov. Chris Gregoire last week.

Grant’s legislation, House Bill 3303, provides a business and occupation tax credit for pre-production expenses of a $1.2 billion polysilicon manufacturing facility, a vital piece of solar panels and computer chips.

"This polysilicon plant means many great, clean-technology jobs for southeast Washington," said Grant. "We did the right thing by giving them a reason to build here, because the manufacturer could locate anywhere in the world. It could be the largest economic development project in county history."

The facility will provide approximately 1,000 construction jobs and 300 permanent jobs with an average salary of $40,000 plus benefits.

State property taxes paid on the plant could offset the credit against the business tax. The investment would also increase the assessed value of the county by one-third, resulting in a reduction in local property tax rates for existing property taxpayers.

In order to qualify for the tax credit, a polysilicon manufacturer must invest at least $500 million in a facility in Walla Walla County. The amount of credit claimed by a single firm is limited to $1 million annually. A 7.5 percent credit on B&O taxes would apply to research, design, engineering, tooling, employee training and wages before actual manufacturing of the product.

To qualify, the polysilicon manufacturer must sign a memorandum of understanding with the Port of Walla Walla by Oct. 1, 2008. A manufacturer taking the credit must report annually on employment, wage, benefit and other data.

The new law goes into effect on June 12, 2008.

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Staff: Larry Clark, (360) 786-7214, clark.larry@leg.wa.gov