Washington State Exempts Solar And Wind From Sales Tax!

Effective July 1, 2001 sales of equipment, labor, and services for installation of solar and wind systems that produce more than 200 watts of electricity will be exempt from state sales tax. This is an instant 8% savings! HR 1859 was passed by the Washington State legislature and signed by Governor Locke on May 8, 2001. Unfortunately this law does not exempt solar hot water or micro-hydro systems from sales tax, but it's a great start.

Text of Washington State's HR1859:

                    CERTIFICATION OF ENROLLMENT

                          HOUSE BILL 1859


                     Chapter 213, Laws of 2001


                         57th Legislature
                 2001 Regular Legislative Session


TAXATION--ELECTRIC GENERATING FACILITIES



                      EFFECTIVE DATE:  7/1/01
Passed by the House March 13, 2001 
  Yeas 93   Nays 0


                            FRANK CHOPP
Speaker of the House of Representatives
     


                           CLYDE BALLARD
Speaker of the House of Representatives



Passed by the Senate April 9, 2001 
  Yeas 47   Nays 0          CERTIFICATE

We, Timothy A. Martin and Cynthia Zehnder, Co-Chief Clerks of the House of
Representatives of the State of Washington, do hereby certify that the attached
is HOUSE BILL 1859  as passed by the House of Representatives and the Senate on
the dates hereon set forth.



                         TIMOTHY A. MARTIN
                                                       Chief Clerk


                          CYNTHIA ZEHNDER
                                                       Chief Clerk
                             BRAD OWEN
President of the Senate

Approved May 8, 2001                        FILED                 

                                          May 8, 2001 - 11:00 a.m.
                           GARY F. LOCKE
Governor of the State of Washington     Secretary of State 
               State of Washington
           _______________________________________________

                           HOUSE BILL 1859
           _______________________________________________

              Passed Legislature - 2001 Regular Session

State of Washington       57th Legislature       2001 Regular Session

By Representatives Poulsen, Crouse, Morris, Casada, DeBolt, Esser,
Simpson, B. Chandler, Linville, Delvin, Wood, Conway, Kenney, Santos,
Romero, Kessler, Pflug, Rockefeller, Lovick, O'Brien, Darneille,
Pearson, Ruderman, McIntire, Anderson, Keiser, Dunn, McDermott, Kagi,
Schual-Berke, Campbell, Edmonds and Jackley

Read first time 02/07/2001.  Referred to Committee on Technology,
Telecommunications & Energy.
    AN ACT Relating to exempting electric generating facilities using
wind, solar energy, landfill gas, or fuel cells from sales and use
taxes; amending RCW 82.08.02567 and 82.12.02567; providing an effective
date; providing expiration dates; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

    Sec. 1.  RCW 82.08.02567 and 1999 c 358 s 4 are each amended to
read as follows:
    (1) The tax levied by RCW 82.08.020 shall not apply to sales of
machinery and equipment used directly in generating electricity using
{+ fuel cells, +} wind, sun, or landfill gas as the principal source of
power, or to sales of or charges made for labor and services rendered
in respect to installing such machinery and equipment, but only if the
purchaser develops with such machinery, equipment, and labor a facility
capable of generating not less than two hundred (({- kilowatts -})) {+
watts +} of electricity and provides the seller with an exemption
certificate in a form and manner prescribed by the department (({- by
rule -})).  The seller shall retain a copy of the certificate for the
seller's files.
    (2) For purposes of this section and RCW 82.12.02567:
    (a) "Landfill gas" means biomass fuel of the type qualified for
federal tax credits under 26 U.S.C. Sec. 29 collected from a landfill. 
"Landfill" means a landfill as defined under RCW 70.95.030;
    (b) "Machinery and equipment" means industrial fixtures, devices,
and support facilities that are integral and necessary to the
generation of electricity using wind, sun, or landfill gas as the
principal source of power;
    (c) "Machinery and equipment" does not include:  (i) Hand-powered
tools; (ii) property with a useful life of less than one year; (iii)
repair parts required to restore machinery and equipment to normal
working order; (iv) replacement parts that do not increase
productivity, improve efficiency, or extend the useful life of
machinery and equipment; (v) buildings; or (vi) building fixtures that
are not integral and necessary to the generation of electricity that
are permanently affixed to and become a physical part of a building;
    (d) Machinery and equipment is "used directly" in generating
electricity {+ with fuel cells or +} by wind energy, solar {+ energy
+}, or landfill gas power if it provides any part of the process that
captures the energy of the wind, sun, or landfill gas, converts that
energy to electricity, and {+ stores, +} transforms{+ , +} or transmits
that electricity for entry into {+ or operation in parallel with +}
electric transmission and distribution systems{+ ;
    (e) "Fuel cell" means an electrochemical reaction that generates
electricity by combining atoms of hydrogen and oxygen in the presence
of a catalyst +}.
    (3) This section expires June 30, (({- 2005 -})) {+ 2009 +}.

    Sec. 2.  RCW 82.12.02567 and 1999 c 358 s 10 are each amended to
read as follows:
    (1) The provisions of this chapter shall not apply with respect to
machinery and equipment used directly in generating not less than two
hundred (({- kilowatts -})) {+ watts +} of electricity using wind, sun,
or landfill gas as the principal source of power.
    (2) The definitions in RCW 82.08.02567 apply to this section.
    (3) This section expires June 30, (({- 2005 -})) {+ 2009 +}.

    {+ NEW SECTION. +}  Sec. 3.  This act is necessary for the
immediate preservation of the public peace, health, or safety, or
support of the state government and its existing public institutions,
and takes effect July 1, 2001.
    Passed the House March 13, 2001.
    Passed the Senate April 9, 2001.
    Approved by the Governor May 8, 2001.
    Filed in Office of Secretary of State May 8, 2001.