wa-law.org > bill > 2023-24 > HB 1756 > Original Bill
Provided the taxpayer fulfills the requirements of this section, all qualified personal property owned by a taxpayer and used for the generation of renewable energy is exempt from property taxes levied for any state purpose.
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Unless a taxpayer is assessed under chapter 84.12 RCW, a claim for an exemption under this section from taxes payable the following year must be filed by March 31st with the county assessor together with the statement required under RCW 84.40.190 and a statement attesting that the taxpayer meets the requirements of subsection (3) of this section. The claim must be made upon forms as prescribed and furnished by the department. The application must indicate if the taxpayer is applying for a 10 or 15-year exemption.
If a taxpayer is assessed under chapter 84.12 RCW, a claim for an exemption under this section from taxes payable the following year must be filed by March 31st with the department together with the annual report required under RCW 84.12.230 and a statement attesting that the taxpayer meets the requirements of subsection (3) of this section. The claim must be made upon forms as prescribed and furnished by the department. The application must indicate if the taxpayer is applying for a 10 or 15-year exemption.
The taxpayer claiming an exemption under this subsection (2) and paying the production excise tax under section 2 of this act must file an annual attestation in the manner and form prescribed by the department.
The taxpayer must register with the department to pay the production excise tax authorized in section 2 of this act.
An exemption granted pursuant to this section to a taxpayer compliant with requirements of this section is granted for 10 or 15 years following the date on which the facility where the qualified personal property is located first becomes operational.
The department must apportion personal property assessed under chapter 84.12 RCW that is granted an exemption under this section pursuant to RCW 84.12.360.
Failure to comply with the requirements of this section results in the personal property taxes becoming immediately due and payable.
The definitions in this subsection apply throughout this section unless the context clearly indicates otherwise.
"Personal property" has the same meaning as in RCW 84.04.080.
"Qualified personal property" means personal property that is used exclusively for the generation or storage of renewable energy in a facility, the construction of which began on or after July 1, 2023.
"Renewable energy" means energy produced by a solar or wind facility with nameplate capacity sufficient to generate at least one megawatt of nameplate capacity of alternating current power.
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For taxpayers granted an exemption under section 1 of this act, an excise tax is imposed on the privilege of using qualified renewable energy generating systems used as an electric power source in the state. The rate of the tax is as follows:
$80 per month per megawatt of nameplate capacity of alternating current power for a qualified renewable energy generating system that uses solar energy to generate electricity and that was granted an exemption under section 1 of this act for 10 years;
$75 per month per megawatt of nameplate capacity of alternating current power for a qualified renewable energy generating system that uses solar energy to generate electricity and that was granted an exemption under section 1 of this act for 15 years;
$150 per month per megawatt of nameplate capacity of alternating current power for a qualified renewable energy generating system that uses wind energy to generate electricity and that was granted an exemption under section 1 of this act for 10 years;
$130 per month per megawatt of nameplate capacity of alternating current power for a qualified renewable energy generating system that uses wind energy to generate electricity and that was granted an exemption under section 1 of this act for 15 years.
For taxpayers granted an exemption under section 1 of this act, a tax is imposed on the capacity of the renewable energy storage system of a qualified renewable energy generating system. The rate of the tax is $100 per month per megawatt hour of storage capacity.
For taxpayers not assessed under chapter 84.12 RCW, the county assessor must provide a list of taxpayers granted an exemption under section 1 of this act for the following year, along with any other information required, to the department by August 1st each year.
A taxpayer applying for an exemption under section 1 of this act for the following year must register with the department prior to submitting an application under section 1 of this act. If the application for an exemption under section 1 of this act is granted for any calendar year, payment of the taxes imposed under this section are due.
The taxpayer claiming an exemption under section 1 of this act and paying the production excise tax under this section must file an annual attestation in the manner and form prescribed by the department.
The definitions in this subsection apply throughout this section unless the context clearly indicates otherwise.
"Qualified renewable energy generating system" means a set of devices whose primary purpose is to produce electricity by means of any combination of collecting, transferring, or converting renewable energy and that is receiving an exemption under section 1 of this act.
"Renewable energy" means energy produced by a solar or wind facility with nameplate capacity sufficient to generate at least one megawatt of nameplate capacity of alternating current power.
"Renewable energy storage system" means battery storage or battery energy storage system that can store renewable energy when production exceeds demand and release energy when energy demand increases.
The renewable energy local benefit account is created in the state treasury. All receipts from the production excise tax in section 2 of this act must be deposited in the account. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used for qualified local counties and qualified school districts.
The total amount appropriated to qualified counties and the qualified school districts within those counties must be in proportion to the amount of production excise tax paid by renewable energy systems located in those counties and must be distributed as follows:
Each qualified county must receive an appropriation equal to 42.5 percent of the production excise tax paid by a renewable energy system located in the county.
Qualified federally recognized Indian tribes must receive an appropriation totaling 15 percent of the production excise tax paid by a renewable energy system impacting the tribes' resources or rights, in proportion to the number of enrolled members of each qualified federally recognized Indian tribe.
Each qualified school district must receive an appropriation from the remaining 42.5 percent of the production excise tax paid by a renewable energy system located in the same county in proportion to the number of students being served by that district.
For the purposes of this section, the definitions in this subsection apply unless the context clearly requires otherwise.
"Qualified county" means a county that has a renewable energy system that receives a tax exemption under section 1 of this act and pays the production excise tax under section 2 of this act.
"Qualified federally recognized Indian tribe" means a federally recognized Indian tribe at least partially located within the geographical boundaries of Washington state with tribal resources or tribal rights potentially impacted by a renewable energy system that receives a tax exemption under section 1 of this act and pays the production excise tax under section 2 of this act.
"Qualified school district" means a school district that is located in a county that has a renewable energy system that receives a tax exemption under section 1 of this act and pays the production excise tax under section 2 of this act.
Chapter 82.32 RCW applies to this act.
RCW 82.32.805 and 82.32.808 do not apply to this act.
This act applies to taxes levied for collection in 2025 and thereafter.