Bellingham offers one of the most robust incentives programs in Washington State, including city-wide incentives for affordable housing, sustainable development and historic preservation, and urban village incentives to target support for businesses and redevelopment in these areas.
Visit the Department of Revenue website to learn about Washington State tax incentives.
Urban Villages
Urban villages offer the perfect setting for shopping, dining out, working and living in a safe and pedestrian-friendly area. These areas offer a smart and sustainable way for Bellingham to grow, which is why the City has targeted incentives, such as:
- B&O Tax Reduction: If you’re opening a new business in Downtown, Old Town, the Waterfront, Samish Way, or Fountain Districts you might be eligible for a graduated tax credit of 90% the first year, 75% the second year and 50% for the third year of operation.
- Multi-Family Tax Exemption Program: Apply for an 8-12 year property tax exemption for new multi-family developments.
- Reduced Transportation Impact Fee (TIF): Projects in urban villages receive an automatically reduced TIF rate, with additional discounts when located on a high-frequency transit route.
- Expedited Permitting: Permit applications within the Downtown pedestrian core and Old Town are given top tier expedited review status.
Learn more about urban village incentives.
Affordable Housing
Our community is committed to providing housing for people of all income levels. One way we encourage this is by offering a series of incentives for developers that provide housing for low-income residents:
- Fee Reduction: Waive up to 80% of Park Impact, School Impact and Transportation Impact fees, as well as System Development Charges.
- Funding Programs: The City offers funding for eligible low-income housing projects, with a preference for those located along transit corridors, urban villages, or within CDBG target areas, which are areas with high concentrations of poverty.
Learn more about Affordable Housing incentives, financing and programs.
Sustainable Development
Green building is an important focus for our City and its long-term sustainability. We introduced the first solar panel building permit exemption program in the State, which helps businesses that use solar panels save more than $2,000 in fees while receiving expedited permitting. Sustainable incentives include:
- Expedited Permitting: Get faster permitting for green building projects; free technical assistance and support is also available.
- Solar Power: Save more than $2,000 in fees and get an expedited, two-week permit review for commercial installations (residential installations are exempt!)
- Support for Advanced Technologies: We’ve done the work in advance to ensure innovative technologies, such as rain gardens, vegetated roofs and pavers, aren’t held up by the permitting process.
Learn more about sustainable development in Bellingham.
Historic Preservation
Bellingham is home to a variety of beautiful historic buildings, and the most sustainable building is one that already exists. To preserve our community’s history and further support sustainable development, we offer special incentives for historic preservation, including:
- Special Valuation Tax Exemption: If your building is listed on the National or Local Register of Historic Places, you might qualify for a 10-year property tax reduction.
- Building Code Flexibility: City permit staff have been trained in the application of the International Existing Building Code, which allows for flexibility in code requirements.
- Adaptive Use Permits: Historic Buildings may be approved to accommodate a business that otherwise wouldn’t be allowed in that zoning district.
- Federal Rehabilitation Tax Credit: You might qualify for a 20% tax credit depending on the usage of your building.
Learn more about historic preservation incentives.
Contact Us
We’re happy to answer any questions you have and help pinpoint which incentives apply to your project. Contact us at planning@cob.org or 1+360-778-8300.
