Renewable Energy Sales and Use Tax Exemption (Washington)

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Summary

Last modified on February 12, 2015.

Financial Incentive Program

Place Washington

Name Renewable Energy Sales and Use Tax Exemption
Incentive Type Sales Tax Incentive
Applicable Sector Commercial, Residential, General Public/Consumer
Eligible Technologies Solar Water Heat, Solar Space Heat, Photovoltaics, Landfill Gas, Wind, Biomass, Geothermal Electric, Fuel Cells, Anaerobic Digestion, Tidal Energy, Wave Energy, Fuel Cells using Renewable Fuels
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount 100% exemption for sales of forest derived biomass used as fuel;

100% exemption for solar photovoltaic systems 10 kilowatts or less, and solar thermal systems;
75% exemption for other qualified systems







Equipment Requirements Systems greater than or equal to 1 kW
Start Date 2006-07-01
Expiration Date 06/30/2018, 06/30/2024, or 1/1/2020, depending on the equipment type and size

















Program Administrator Washington State Department of Revenue
Website http://dor.wa.gov/Content/FindTaxesAndRates/TaxIncentives/IncentivePrograms.aspx#Energy
Date added to DSIRE 2001-05-18
Last DSIRE Review 2014-09-16



References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


Summary

In Washington State, there are sales tax exemptions for the sale of equipment used to generate electricity, as well as for the sale of "hog fuel," defined as wood waste and other wood residuals including forest-derived biomass. It does not include firewood or wood pellets. Hog fuel is fully exempt from sales tax, though the buyer must provide the seller a completed sales tax exemption certificate and must complete an annual tax incentive survey. The exemption expires June 30, 2024.


The sales of equipment used to generate electricity using fuel cells, wind, sun, biomass energy, tidal or wave energy, geothermal, anaerobic digestion or landfill gas is eligible for a 75% exemption from sales tax. The tax exemption applies to labor and services related to the installation of the equipment, as well as to the sale of equipment and machinery. Eligible systems are those with a generating capacity of at least 1 kilowatt (kW). Purchasers of the systems listed above may claim an exemption in the form of a remittance. Originally scheduled to expire on June 30, 2013, SB 5882 of 2013 extended this incentive through January 1, 2020.


Solar energy systems 10 kW or less are eligible for a 100% exemption from sales and use tax. Purchasers of these systems can provide the seller with an exemption certificate to avoid paying the sales and use tax. SB 5882 expanded this incentive to include solar thermal systems capable of producing no more than 3 million British thermal units per day that use a solar collector or a solar hot water system. That same legislation extended the expiration date for this exemption to June 30, 2018.


Click here for a special notice from the Washington State Department of Revenue about this program.


Incentive Contact

Contact Name Beth Mills
Department Washington State Department of Revenue

Address 6500 Linderson Way SW
Address 2 Suite 102
Place Tumwater, Washington
Zip/Postal Code 98501
Phone (360) 705-6642


Email bethm@dor.wa.gov
Website http://dor.wa.gov
     
     

Authorities (Please contact the if there are any file problems.)

Authority 1: RCW § 82.08.962
Date Effective 2009-07-01

Expiration Date 2020-01-01

Authority 2: RCW § 82.08.963


Expiration Date 2018-06-30

















  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]

References

  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency"