​Congratulations to Spotted Fox Digital Marketing on being selected as the Regional Chamber's Outstanding Member of the Month for August 2024.

Spotted Fox CEOs, Nathan Robertson and Brad Sappenfield, have both generously donated their time to share their wisdom during the Chamber's Ask the Experts workshop series.

Additionally, Spotted Fox partners with the Regional Chamber on our three largest events: the Annual Meeting & Awards Luncheon, the Tri-Cities Diversity Summit, and the Tri-Cities Women in Business Conference. The fantastic Spotted Fox video team is responsible for creating the awardee profile videos shown at these events, which highlight the exceptional businesses and leaders that make the Tri-Cities a great place to live, work, and play.

Congratulations, Spotted Fox! Thank you for being a member of the Tri-City Regional Chamber!

Thank you to everyone who attended the Congressional Update Membership Luncheon with Rep. Dan Newhouse on August 28.

Rep. Newhouse spoke to the audience about numerous issues affecting the Tri-Cities region, including inflation, fentanyl addiction, and the lower Snake River dams. Additionally, Rep. Newhouse was presented with the U.S. Chamber of Commerce's Advocate for American Business Award by U.S. Chamber Vice President Chris Eyler.

The Tri-City Regional Chamber of Commerce has recently signed onto a Tax Coalition Letter with the US Chamber of Commerce. The letter addresses the potential expiration of tax benefits as outlined in the 2017 Tax Cuts and Jobs Act. The expiration of the Tax Cuts and Jobs Act (TCJA) would have significant ramifications to businesses. Here is a deeper look into the potential on impacts on business:

1. Tax Treatment of Business Expenses and Investment Costs:
   • Current Situation: Businesses can currently deduct certain expenses and investment costs, which lowers their taxable income.
   • Post-Expiration: Without these deductions, businesses may face higher taxable income, leading to increased tax liabilities. This could discourage investment and expansion, potentially slowing economic growth.
2. Twenty percent Deduction for Pass-Through Business Income:
   • Current Situation: Qualifying pass-through businesses (like sole proprietorships, partnerships, and S-corporations) can deduct 20% of their income.
   • Post-Expiration: Eliminating this deduction would increase the effective tax rate on these businesses, reducing their net income and possibly leading to higher prices for consumers or lower wages for employees.
3. Competitive International Tax Code:
   • Current Situation: The TCJA introduced measures to make the U.S. tax code more competitive internationally, such as the Global Intangible Low-Taxed Income (GILTI) provision.
   • Post-Expiration: Reverting to pre-TCJA rules could make U.S. businesses less competitive globally, potentially leading to a shift of operations and profits to countries with more favorable tax regimes.

Broader Economic Implications
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1. Economic Growth: The TCJA was designed to stimulate economic growth through tax cuts and incentives. Repealing it could slow growth by increasing the tax burden on businesses and individuals.
2. Federal Revenue: Repealing the TCJA could increase federal revenue in the short term, but the long-term impact on economic growth and tax revenue is uncertain.
3. Political Landscape: With a significant portion of Congress not having been in office when the TCJA was enacted, there may be differing views on its effectiveness and the best path forward for tax policy.

Repeal of the TCJA could impact individual businesses as well as the economy. Stayed tuned for more information. 

Congratulations to The GOAT at Broadmoor on their ribbon cutting and grand opening on Thursday, August 22. The apartment complex is located at 10602 Burns Rd. in Pasco.

Their modern 1-, 2-, and 3-bedroom homes include a full-sized washer and dryer, fully equipped kitchens with quartz countertops, spacious bedrooms, walk-in closets, and more. Plus, they have onsite amenities such as an outdoor pool, fitness center, movie theater, virtual reality room, game room, sports court, and more! ​ www.thegoatatbroadmoor.com/

​The Washington State Energy Facility Site Evaluation Council (EFSEC) is set to hold a special virtual meeting on August 29, 2024, at 3:00 PM. This meeting will focus on the Horse Heaven Wind proposal, a significant project that has garnered considerable public interest. A copy of the draft Site Certification agreement can be found HERE

Key Details:

• Date and Time: August 29, 2024, at 3:00 PM
• Format: Virtual meeting
• Agenda: Discussion on the Horse Heaven Wind proposal
• Public Participation: While the meeting is open to the public, no public comments will be received during this session.

How to Attend:
You can join the meeting virtually via Microsoft Teams. Here are the details:

• Teams Link: Join the Meeting
• Dial-in Number: +1 564-999-2000
• Conference ID: 743 444 564#

Why This Meeting Matters:
The Horse Heaven Wind proposal is a pivotal project aimed at expanding renewable energy infrastructure in Washington State. The EFSEC’s decision on this proposal could have far-reaching implications for the state’s energy landscape, environmental policies, and local communities.

What to Expect:
During the meeting, EFSEC members will discuss various aspects of the Horse Heaven Wind proposal, including its potential benefits and challenges. The Council may take final action on the proposal, making this meeting a crucial event for stakeholders and residents alike.

Stay informed and engaged by attending the meeting virtually. Your participation helps ensure transparency and accountability in the decision-making process. FULL EFSEC Horse Heaven Hills website. 

Feel free to share this blog post to keep your community informed about this important event! 

The Local Government Affairs Committee recently voted to take positions on two of the upcoming Washington State Initiatives. On August 21, 2024, the Chamber Board affirmed the committee recommendations.

Based on the recommendations of the Association of Washington Business (AWB), we reviewed Initiative 2109, which proposes to repeal the Capital Gains Tax. The AWB’s position is to support this initiative. Both the AWB and most businesses opposed the Capital Gains Tax when it was initially proposed, as it acts as a disincentive for businesses to establish themselves in Washington State. Additionally, the Capital Gains Tax is seen as a precursor to a larger income tax, which Washington voters have rejected multiple times.

Supporting Initiative 2109 aligns with our Guiding Principles of “Tax and Spending” and “Regulatory Reform.” The principle of Tax and Spending advocates for “a competitive and balanced tax environment that stimulates growth by encouraging the private sector.” Regulatory Reform states that “government policies and regulations should incentivize innovation and entrepreneurship.” The Capital Gains Tax contradicts both principles. Therefore, we voted to support Initiative 2109.
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Similarly, the LGAC reviewed Initiative 2124, which proposes the ability to opt out of the Long-Term Services Insurance Program (WA Cares). Neither the AWB nor the business community supported the WA Cares program when it was first introduced due to its numerous uncertainties and limitations. Issues of eligibility and solvency have been prominent concerns from the beginning.
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Supporting Initiative 2124 is consistent with our Guiding Principles of “Regulatory Reform” and “Healthcare.” The implementation of WA Cares contradicts our Regulatory Reform principle by creating additional reporting and tracking requirements that negatively impact businesses. It also violates our Healthcare principle by being a “burdensome employer directive.” Currently, employees bear the entire cost of the WA Cares program, but as the program grows and solvency issues arise, it is foreseeable that employers may eventually be required to cover the shortfall. Therefore, we voted to support Initiative 2124.

Balancing a job and raising children is a challenge for many families. The rising cost of living impacts every aspect of our daily lives. It is not just the increasing cost of childcare that is a problem; availability is also an issue. Many childcare providers have space for more children but lack sufficient staff.

The Tri-City Regional Chamber of Commerce, along with Community-Minded Enterprises and other local organizations, sponsored the first Childcare Strategy Summit on August 13th at the Tri-Cities Business and Visitor Center in Kennewick.
Over fifty community leaders and childcare providers gathered to discuss the current state of childcare services in the Tri-City region. Population growth and the need for dual-income families are driving the demand for childcare. Ajsa Suljic, a Regional Labor Economist, reviewed trends in population growth, industry diversification, and local workforce demands.

Amy Anderson from the Association of Washington Businesses provided an overview of childcare in Washington State. She highlighted that the state legislature allocated $34 billion to K-12 education, $18 billion to post-secondary education, but only $2.4 billion to childcare. Statistics also show that 15% of the workforce has children under six, and 61% of households with children under six have all adults in the labor force.
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It is clear that the childcare issue is also a workforce issue. The lack of affordable childcare is a growing concern, and there does not seem to be a quick fix. In 2024, legislation was introduced to address the problem but did not advance. New legislation will be proposed in 2025, and we will keep you updated on its progress.

Congratulations to Shelby's Floral on the ribbon cutting and grand opening of their new location! Shelby's Floral offers beautiful, fresh flower arrangements created by expert florists for the perfect gifts to suit any special occasion. You can visit the beautiful new shop at 6018 W. Clearwater Ave. in Kennewick.

Washington State has become a burgeoning hub for data centers, with tech giants and startups alike flocking to the region. This growth is a double-edged sword, offering economic benefits while posing challenges to the state’s green energy initiatives.
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Economic Growth and Job Creation
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The proliferation of data centers has been a boon for job creation in rural areas. The job creation associated with the growth of data centers in Washington State has been a topic of much debate. Initially, the tax break for data centers was approved by legislators, to create more jobs, particularly in rural areas of Washington. The expectation was that these facilities would bring high-paying, long-term, and environmentally friendly jobs.

However, the actual number of jobs created has been difficult to quantify. While the state has forgoing more than $474 million since 2018 in tax breaks for data centers, it has not been able to definitively say how many jobs were created as a result1. The tax break’s requirement for how many people a company must hire was quickly weakened, and the state failed to fully scrutinize whether the sacrifices were worth it.

Despite this lack of clarity, there is evidence of economic impact. In rural counties, data center operations have generated an estimated $158 million in economic output per year over the last four years. They have supported roughly 760 full-time operations and related jobs, with nearly $70 million in annual wages and benefits. This suggests that while the exact number of jobs created by the tax break is uncertain, data centers have had a significant economic impact in the areas where they are located.

Energy Requirements of Data Centers
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Data centers are intensive energy consumers due to the need to power and cool a large number of servers continuously. The energy draw from these “computer warehouses” has seen explosive growth, prompting states like Washington to reconsider their support for the industry. In Washington, the tax exemptions offered to attract data centers have led to a surge in energy consumption, which is at odds with the state’s environmental policies.

Washington State has set ambitious targets to transition to a carbon-neutral power grid. However, the increasing electricity needs of data centers pose a significant challenge to these green energy efforts. Grant County, for example has two public dams capable of powering more than 1.5 million homes, but the soaring demand from data centers has forced the county to consider other, potentially non-renewable, energy sources to meet the excess need.

This has led to a critical choice: either violate the state’s green energy law, which limits the use of fossil fuels, or risk rolling blackouts that could affect homes, factories, and hospitals. The situation is further complicated by the fact that, in recent years, Washington has obtained a smaller share of its electricity from renewable sources than two decades ago, despite being a major producer of hydropower.

The expansion of data centers in Washington State presents a multifaceted challenge. While they contribute to economic growth and job creation, their substantial energy demands exert pressure on the state’s power grid and complicate efforts to maintain a commitment to green energy.

Legislative hurdles have impeded comprehensive studies on their energy consumption, leaving critical gaps in understanding their full impact. As the state continues to welcome these data hubs, it must carefully balance economic incentives with environmental responsibilities.

The success of data centers in Washington’s future hinges on its ability to strategically navigate this complex landscape, ensuring both economic stability and adherence to renewable energy goals for a sustainable future.

​Congratulations to City of Kennewick on the ribbon cutting ceremony for their Deschutes & Columbia Center Blvd. Intersection Project. This large-scale infrastructure project, which began in the summer of 2023, was designed to enhance traffic flow and improve safety at a major intersection in Kennewick. 

Key features of the project include:

New Traffic Signal System: A new traffic signal system has been installed to accommodate a right-turn lane, increasing the turning capacity for westbound traffic turning northbound onto Columbia Center Blvd.

Roundabout Installation: A new roundabout at the intersection of Colorado St. and Deschutes Ave. has been constructed to improve traffic circulation.

Infrastructure Improvements: The project included the installation of curbs, gutters, sidewalks, traffic curbing, concrete traffic islands, retaining walls, driveways, storm drainage systems, and utility trenches.

Paving and Restriping: The entire intersection at Columbia Center Blvd. and Colorado St. has been overlaid with hot mix asphalt and restriped to ensure smooth traffic flow.

Future Enhancements: This work prepares for the widening of Columbia Center Blvd. north of Deschutes Ave, adding a third lane for northbound and southbound through traffic up to Quinault Ave.