BELLINGHAM, WA (MyBellinghamNow.com) – Potential business owners looking to set up shop in Bellingham now have some new incentives to get the ball rolling.

The City Council voted unanimously to pass an ordinance that amends rules surrounding tax credits within the city’s “urban villages.”

In 2015, Bellingham began offering tax credits to new businesses that operated in urban village areas, such as the Fountain District and Samish Way.

But a study conducted in 2025 found that business vacancies in other areas, like downtown Bellingham, were at unhealthy levels.

The new ordinance expands the tax credit option to the downtown Bellingham core, as well as the Fairhaven and Barkley Urban Villages.

It also increases the amount of taxes covered by the credit to 100%.

That will be in effect for new urban village businesses for 3 years, while new downtown businesses can enjoy the tax credits for 7 years.