Washington

Incentives/Policies for Renewables & Efficiency

Renewable Energy Sales and Use Tax Exemption

Last DSIRE Review: 05/14/2012

Program Overview:

State:	Washington
Incentive Type:	Sales Tax Incentive
Eligible Renewable/Other Technologies:	Photovoltaics, Landfill Gas, Wind, Biomass, Geothermal Electric, Fuel Cells, Anaerobic Digestion, Tidal Energy, Wave Energy, Fuel Cells using Renewable Fuels
Applicable Sectors:	Commercial, Residential, General Public/Consumer
Amount:	100% exemption for solar photovoltaic systems 10 kilowatts or less; 75% exemption for other qualified systems
Equipment Requirements:	Systems greater than or equal to 1 kW
Start Date:	7/1/2006
Expiration Date:	6/30/2013
Authority 1: Date Effective:	SB 6170 7/1/2009
Authority 2: Date Effective: Expiration Date:	RCW § 82.08.962 7/1/2009 6/30/13

Summary:

In Washington State, there is a 75% exemption from tax for 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. 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. 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. In May 2009, Washington passed SB 6170, effective July 1, 2009. This legislation extended the expiration date of these exemptions until June 30, 2013.

Contact:

Beth Mills
Washington State Department of Revenue
6500 Linderson Way SW
Suite 102
Tumwater, WA 98501
Phone: (360) 705-6642
E-Mail: bethm@dor.wa.gov
Web Site: http://dor.wa.gov

Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

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