Washington ~ Sales and Use, Miscellaneous Taxes: Governor Signs Bill to Promote Local Renewable Energy

Gov. Jay Inslee has signed legislation that modifies renewable energy system tax incentives. The legislation reduces the maximum incentive rate provided for each kilowatt-hour of electricity generated by a renewable energy system over the period of the program. An incentive to promote installation of systems is provided through 2021.

For investment cost recovery incentive payments, no incentive may be paid for kilowatt-hours generated after June 30, 2017 (formerly June 30, 2020) with some exceptions. The right to earn tax credits expires June 30, 2029 (formerly June 30, 2020), and the credits may not be claimed after June 30, 2030 (formerly June 30, 2021).

The 75% partial sales and use tax exemption for machinery and equipment used directly in the generation of electricity using solar energy and capable of generating no more than 500 kW of electricity, expires September 30, 2017. Furthermore, the sales and use tax exemption for machinery and equipment used directly in the generation of electricity using solar energy and capable of generating no more than 10 kW of electricity, expires September 30, 2017.

SB 5939, Laws 2017, effective July 7, 2017

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