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The U.S. Department of Energy and the North Carolina Clean Energy Technology Center are excited to announce that a new, modernized DSIRE is under construction. The new version of DSIRE will offer significant improvements over the current version, including expanded data accessibility and an array of new tools for site users. The new DSIRE site will be available in December 2014. Staff are currently working hard on the new version of DSIRE but are also maintaining the content of the current version of DSIRE. Thank you for your continued support and patience during this transition. We hope you are as excited for December as we are!

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Washington

Washington

Incentives/Policies for Renewables & Efficiency

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Renewable Energy Sales and Use Tax Exemption   

Last DSIRE Review: 09/16/2014
Program Overview:
State: Washington
Incentive Type: Sales Tax Incentive
Eligible Renewable/Other 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
Applicable Sectors: Commercial, Residential, General Public/Consumer
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:7/1/2006
Expiration Date:06/30/2018, 06/30/2024, or 1/1/2020, depending on the equipment type and size
Web Site: http://dor.wa.gov/Content/FindTaxesAndRates/TaxIncentives/Incenti...
Authority 1:
Date Effective:
Expiration Date:
RCW § 82.08.962
07/01/2009
01/01/2020
Authority 2:
Expiration Date:
RCW § 82.08.963
06/30/2018
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. 


 
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
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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.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2013 - 2014 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.