Washington:New bill would create rural development investment funds

Proposed Senate legislation would create rural development and opportunity zone funds and extend tax reductions to certain timber activities. Private investment companies could apply to join these funds that would provide capital for businesses in qualifying areas. The prime sponsor of Senate Bill 5423, District 1 Sen. Guy Palumbo, D-Maltby, reworked the measure from what he proposed last year, noting it won’t cost the state any money. SB 5423 would create a tax incentive for Rural and Small Business Investment Companies (RBICs) and Small Business Investment Companies (SMBICs). In this case, the incentive is for investment in specific opportunity zones in Washington.“This is the way that tax preferences should be written,” said Palumbo. “This one has such strong sideboards and accountability that it theoretically shouldn’t cost the state anything.”