RCW 82.12.956
Exemptions
—
Hog fuel used to generate electricity, steam, heat, or biofuel.
(Expires June 30, 2034.)
(1) The provisions of this chapter do not apply with respect to the use of hog fuel for production of electricity, steam, heat, or biofuel.
(2) For the purposes of this section:
(a) "Hog fuel" has the same meaning as provided in RCW 82.08.956
; and
(b) "Biofuel" has the same meaning as provided in RCW 82.08.956
.
(3) This section expires June 30, 2034.
[
2023 c 341 s 3
;
2021 c 145 s 14
;
2013 2nd sp.s. c 13 s 1003
;
2009 c 469 s 302
.]
NOTES:
Tax preference performance statement
—
2023 c 341 ss 2 and 3:
See note following RCW 82.08.956
.
Intent
—
2023 c 341:
See note following RCW 82.08.956
.
Intent
—
Effective date
—
2013 2nd sp.s. c 13:
See notes following RCW 82.08.956
.
Effective date
—
2009 c 469:
See note following RCW 82.08.962
.
RCW 82.12.962
Exemptions
—
Use of machinery and equipment in generating electricity.
(Expires January 1, 2030.)
(1)(a) Subject to the requirements of this section, the tax imposed by RCW 82.12.020
does not apply to machinery and equipment used directly in generating electricity using fuel cells, wind, sun, biomass energy, tidal or wave energy, geothermal resources, or technology that converts otherwise lost energy from exhaust, or to 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 one thousand watts AC of electricity. Except as otherwise provided in this section, the consumer must pay the state and local use tax on the use of such machinery and equipment and labor and services, and apply to the department for a remittance of the tax paid.
(b) Beginning on July 1, 2011, through December 31, 2019, the amount of the exemption under this subsection (1) is equal to seventy-five percent of the state and local use tax paid. The consumer is eligible for an exemption under this subsection (1)(b) in the form of a remittance.
(c) Beginning January 1, 2020, through December 31, 2029, the purchaser is entitled to an exemption, in the form of a remittance, under this subsection (1)(c) in an amount equal to:
(i) Fifty percent of the state and local use tax paid, if:
(A) The exempt purchase is for machinery and equipment or labor and services rendered in respect to installing such machinery and equipment in (a) of this subsection, excluding qualified purchases under (c)(i)(B) of this subsection, and the department of labor and industries certifies that the project includes: Procurement from and contracts with women, minority, or veteran-owned businesses; procurement from and contracts with entities that have a history of complying with federal and state wage and hour laws and regulations; apprenticeship utilization; and preferred entry for workers living in the area where the project is being constructed. In the event that a project is built without one or more of these standards, and a project developer or its designated principal contractor demonstrates that it has made all good faith efforts to meet the standards but was unable to comply due to lack of availability of qualified businesses or local hires, the department of labor and industries may certify that the developer complied with that standard; or
(B) The exempt purchase is for machinery and equipment that is used directly in the generation of electricity by a solar energy system capable of generating more than one hundred kilowatts AC but no more than five hundred kilowatts AC of electricity, or labor and services rendered in respect to installing such machinery and equipment, and the department of labor and industries certifies that the project has met the requirements of (c)(i)(A) of this subsection, and the purchaser has provided the following documentation to the department as part of the application for a remittance:
(I) A copy of the contractor's certificate of registration in compliance with chapter
18.27
RCW;
(II) The contractor's current state unified business identifier number;
(III) A copy of the contractor's proof of industrial insurance coverage for the contractor's employees working in Washington as required in Title
51
RCW; employment security department number as required in Title
50
RCW; and a state excise tax registration number as required in Title
82
RCW; and
(IV) Documentation of the contractor's history of compliance with federal and state wage and hour laws and regulations, consistent with (e)(ii)(D) of this subsection;
(ii) Seventy-five percent of the state and local use tax paid, if the department of labor and industries certifies that the project complies with (c)(i)(A) of this subsection and compensates workers at prevailing wage rates determined by local collective bargaining as determined by the department of labor and industries. This subsection (1)(c)(ii) does not apply with respect to solar energy systems described in (c)(i)(B) of this subsection; or
(iii) One hundred percent of the state and local use tax paid, if the department of labor and industries certifies that the project is developed under a community workforce agreement or project labor agreement. This subsection (1)(c)(iii) does not apply with respect to solar energy systems described in (c)(i)(B) of this subsection.
(d) In order to qualify for the remittance under (c) of this subsection, installation of the qualifying machinery and equipment must commence no earlier than January 1, 2020, and be completed by December 31, 2029.
(e) Beginning July 1, 2019, and through December 31, 2029, the consumer is entitled to an exemption under this subsection (1)(e) in an amount equal to one hundred percent of the state and local use tax due on:
(i) Machinery and equipment that is used directly in the generation of electricity by a solar energy system that is capable of generating no more than one hundred kilowatts AC of electricity; or
(ii) Labor and services rendered in respect to installing machinery and equipment exempt under (e)(i) of this subsection, and the seller meets the following requirements at the time of the purchase for which the exemption is claimed:
(A) Has obtained a certificate of registration in compliance with chapter
18.27
RCW;
(B) Has obtained a current state unified business identifier number;
(C) Possesses proof of industrial insurance coverage for the contractor's employees working in Washington as required in Title
51
RCW; employment security department number as required in Title
50
RCW; and a state excise tax registration number as required in Title
82
RCW; and
(D) Has had no findings of violations of federal or state wage and hour laws and regulations in a final and binding order by an administrative agency or court of competent jurisdiction in the past twenty-four months.
(f) In order to qualify for the exemption under (e)(ii) of this subsection, installation of the qualifying machinery and equipment must commence no earlier than July 1, 2019, and be completed by December 31, 2029.
(2) The department of labor and industries must initiate an emergency rule making on May 7, 2019, to be completed by December 1, 2019, to:
(a) Define and set minimum requirements for all labor standards identified in subsection (1)(c) of this section; and
(b) Set requirements for all good faith efforts under subsection (1)(c)(i) and (ii) of this section, as well as documentation requirements and a certification process. Requirements for all good faith efforts must be designed to maximize the likelihood that the project is completed with said standards and could include: Proactive outreach to firms that are women, minority, and veteran-owned businesses; advertising in local community publications and publications appropriate to identified firms; participating in community job fairs, conferences, and trade shows; and other measures. The certification process and timeline must be designed to prevent undue delay to project development.
(3)(a)(i) A person claiming an exemption in the form of a remittance under subsection (1)(b) and (c) of this section must pay the tax imposed by RCW 82.12.020
and all applicable local use taxes imposed under the authority of chapters
82.14
and
81.104
RCW. The consumer may then apply to the department for remittance in a form and manner prescribed by the department. A consumer may not apply for a remittance under this section more frequently than once per quarter. The consumer must specify the amount of exempted tax claimed and the qualifying purchases or acquisitions for which the exemption is claimed. The consumer must retain, in adequate detail, records to enable the department to determine whether the consumer is entitled to an exemption under this section, including: Invoices; proof of tax paid; and documents describing the machinery and equipment.
(ii) The application for remittance must include a copy of the certificate issued for the project by the department of labor and industries under subsection (1) of this section.
(b) The department must determine eligibility for remittances under this section based on the information provided by the consumer, which is subject to audit verification by the department. The department must on a quarterly basis remit exempted amounts to qualifying consumers who submitted applications during the previous quarter.
(4) Purchases exempt under RCW 82.08.962
are also exempt from the tax imposed under RCW 82.12.020
.
(5) The definitions in RCW 82.08.962
apply to this section.
(6) The exemption provided in subsection (1) of this section does not apply:
(a) To machinery and equipment used directly in the generation of electricity using solar energy and capable of generating no more than five hundred kilowatts AC of electricity, or to sales of or charges made for labor and services rendered in respect to installing such machinery and equipment, when first use within this state of such machinery and equipment, or labor and services, occurs after September 30, 2017, and before January 1, 2020, except as otherwise provided in subsection (7) of this section; and
(b) To any other machinery and equipment described in subsection (1)(a) of this section, or to sales of or charges made for labor and services rendered in respect to installing such machinery or equipment, when first use within this state of such machinery and equipment, or labor and services, occurs after December 31, 2029.
(7)(a) The exemption provided by this section is reinstated for machinery and equipment for solar energy systems capable of generating more than one hundred kilowatts AC but no more than five hundred kilowatts AC of electricity, or sales of or charges made for labor and services rendered in respect to installing such machinery and equipment, if first use within the state of the machinery and equipment commences on or after January 1, 2020.
(b) The exemption provided by this section is reinstated for machinery and equipment for solar energy systems capable of generating no more than one hundred kilowatts AC of electricity, or sales of or charges made for labor and services rendered in respect to installing such machinery and equipment, if first use within the state of the machinery and equipment commences on or after July 1, 2019.
(8) This section expires January 1, 2030.
[
2019 c 288 s 19
;
2018 c 164 s 7
;
2017 3rd sp.s. c 36 s 16
;
2013 2nd sp.s. c 13 s 1505
;
2009 c 469 s 102
.]
NOTES:
Tax preference performance statement
—
2019 c 288 ss 18 and 19:
See note following RCW 82.08.962
.
Findings
—
Intent
—
Effective date
—
2019 c 288:
See RCW 19.405.010
and
19.405.901
.
Effective date
—
2018 c 164:
See note following RCW 82.08.900
.
Findings
—
Intent
—
Effective date
—
2017 3rd sp.s. c 36:
See notes following RCW 82.16.130
.
Intent
—
Effective date
—
2013 2nd sp.s. c 13:
See notes following RCW 82.08.962
.
Effective date
—
2009 c 469:
See note following RCW 82.08.962
.
RCW 82.12.964
Use of machinery and equipment used in generating electricity
—
Effect of exemption expiration.
(1) Except as provided in subsection (2) of this section, the expiration of RCW 82.12.02567
and
82.12.962
do not require the payment of, or authorize the department to assess, use tax imposed by or under the authority of RCW 82.12.020, 81.104.170, and chapter
82.14
RCW, on the use of machinery and equipment, and labor and services rendered in respect to installing such machinery and equipment, if such use qualified for the exemption under RCW 82.12.02567
or
82.12.962
immediately preceding the expiration date of the applicable exemption under RCW 82.12.02567
or
82.12.962
.
(2) Subsection (1) of this section does not prohibit the department from assessing, subject to the limitations period in RCW 82.32.050, state and local use taxes on the use of machinery and equipment, and labor and services rendered in respect to installing such machinery and equipment, if, before the expiration of the applicable exemption provided in RCW 82.12.02567
or
82.12.962, the machinery and equipment was put to a use that is outside of the scope of the applicable exemption in RCW 82.12.02567
or
82.12.962
.
[
2009 c 469 s 109
.]
NOTES:
Effective date
—
2009 c 469:
See note following RCW 82.08.962
.
RCW 82.12.965
Exemptions
—
Semiconductor materials manufacturing.
(Contingent effective date; contingent expiration date.)
(1) The provisions of this chapter do not apply with respect to the use of tangible personal property that will be incorporated as an ingredient or component of new buildings used for the manufacturing of semiconductor materials during the course of constructing such buildings or to labor and services rendered in respect to installing, during the course of constructing, building fixtures not otherwise eligible for the exemption under RCW 82.08.02565
(2)(b).
(2) The eligibility requirements, conditions, and definitions in RCW 82.08.965
apply to this section, including the filing of a complete annual tax performance report with the department under RCW 82.32.534
.
(3) No exemption may be taken after the expiration date of this section, however all of the eligibility criteria and limitations are applicable to any exemptions claimed before that date.
(4) Pursuant to RCW 82.32.790, this section is contingent on the siting and commercial operation of a significant semiconductor microchip fabrication facility in the state of Washington.
(5) This section expires January 1, 2034, unless the contingency in RCW 82.32.790
(2) occurs.
[
2024 c 261 s 7
. Prior:
2017 3rd sp.s. c 37 s 512
; (2017 3rd sp.s. c 37 s 511 expired January 1, 2018);
2017 c 135 s 30
;
2010 c 114 s 129
;
2003 c 149 s 6
.]
NOTES:
Tax preference performance statement exemption
—
Effective date
—
2024 c 261 ss 2-9:
See notes following RCW 82.04.241
.
Effective date
—
2017 3rd sp.s. c 37 ss 101-104, 403, 503, 506, 508, 510, 512, 514, 516, 518, 520, 522, 524, 526, 703, 705, 707, and 801-803:
See note following RCW 82.04.2404
.
Expiration date
—
2017 3rd sp.s. c 37 ss 502, 505, 507, 509, 511, 513, 515, 517, 519, 521, 523, and 525:
See note following RCW 82.04.2404
.
Contingent effective date
—
2017 c 135; 2010 c 114:
See RCW 82.32.790
.
Effective date
—
2017 c 135:
See note following RCW 82.32.534
.
Finding
—
Intent
—
2010 c 114:
See note following RCW 82.32.534
.
Findings
—
Intent
—
2003 c 149:
See note following RCW 82.04.426
.
RCW 82.12.9651
Exemptions
—
Gases and chemicals used in production of semiconductor materials.
(Expires January 1, 2034.)
(1) The provisions of this chapter do not apply with respect to the use of gases and chemicals used by a manufacturer or processor for hire in the production of semiconductor materials. This exemption is limited to gases and chemicals used in the production process to grow the product, deposit or grow permanent or sacrificial layers on the product, to etch or remove material from the product, to anneal the product, to immerse the product, to clean the product, and other such uses whereby the gases and chemicals come into direct contact with the product during the production process, or uses of gases and chemicals to clean the chambers and other like equipment in which such processing takes place. For purposes of this section, "semiconductor materials" has the meaning provided in RCW 82.04.2404
and
82.04.294
(3).
(2) A person claiming the exemption under this section must file a complete annual tax performance report with the department under RCW 82.32.534
.
(3) No application is necessary for the tax exemption. The person is subject to all of the requirements of chapter
82.32
RCW.
(4) Any person who has claimed the exemption under this section must reimburse the department for 50 percent of the amount of the tax preference under this section, if the number of persons employed by the person claiming the tax preference is less than 90 percent of the person's three-year employment average for the three years immediately preceding the year in which the exemption is claimed.
(5) This section expires January 1, 2034.
[
2024 c 261 s 12
;
2021 c 145 s 15
;
2020 c 139 s 22
;
2017 3rd sp.s. c 37 s 508
; (2017 3rd sp.s. c 37 s 507 expired January 1, 2018);
2017 c 135 s 31
;
2014 c 97 s 406
;
2010 c 114 s 130
;
2009 c 469 s 503
;
2006 c 84 s 4
.]
NOTES:
Tax preference performance statement
—
Effective date
—
2024 c 261 ss 11 and 12:
See notes following RCW 82.04.241
.
Tax preference performance statement
—
2017 3rd sp.s. c 37 ss 505-508:
See note following RCW 82.08.9651
.
Effective date
—
2017 3rd sp.s. c 37 ss 101-104, 403, 503, 506, 508, 510, 512, 514, 516, 518, 520, 522, 524, 526, 703, 705, 707, and 801-803:
See note following RCW 82.04.2404
.
Expiration date
—
2017 3rd sp.s. c 37 ss 502, 505, 507, 509, 511, 513, 515, 517, 519, 521, 523, and 525:
See note following RCW 82.04.2404
.
Effective date
—
2017 c 135:
See note following RCW 82.32.534
.
Application
—
Finding
—
Intent
—
2010 c 114:
See notes following RCW 82.32.534
.
Effective date
—
2009 c 469:
See note following RCW 82.08.962
.
Effective date
—
2006 c 84 ss 2-8:
See note following RCW 82.04.2404
.
Findings
—
Intent
—
2006 c 84:
See note following RCW 82.04.2404
.
RCW 82.12.970
Exemptions
—
Gases and chemicals used to manufacture semiconductor materials.
(Contingent effective date; contingent expiration date.)
(1) The provisions of this chapter do not apply with respect to the use of gases and chemicals used by a manufacturer or processor for hire in the manufacturing of semiconductor materials. This exemption is limited to gases and chemicals used in the manufacturing process to grow the product, deposit or grow permanent or sacrificial layers on the product, to etch or remove material from the product, to anneal the product, to immerse the product, to clean the product, and other such uses whereby the gases and chemicals come into direct contact with the product during the manufacturing process, or uses of gases and chemicals to clean the chambers and other like equipment in which such processing takes place. For purposes of this section, "semiconductor materials" has the same meaning as provided in RCW 82.04.241
.
(2) A person claiming the exemption under this section must file a complete annual tax performance report with the department under RCW 82.32.534
. No application is necessary for the tax exemption. The person is subject to all of the requirements of chapter
82.32
RCW.
(3) Any person who has claimed the exemption under this section must reimburse the department for 50 percent of the amount of the tax preference under this section if the number of persons employed by the person claiming the tax preference is less than 90 percent of the person's three-year employment average for the three years immediately preceding the year in which the exemption is claimed.
(4) Pursuant to RCW 82.32.790, this section is contingent on the siting and commercial operation of a significant semiconductor microchip fabrication facility in the state of Washington.
(5) This section expires January 1, 2034, unless the contingency in RCW 82.32.790
(2) occurs.
[
2024 c 261 s 8
. Prior:
2017 3rd sp.s. c 37 s 522
; (2017 3rd sp.s. c 37 s 521 expired January 1, 2018);
2017 c 135 s 32
;
2010 c 114 s 131
;
2003 c 149 s 8
.]
NOTES:
Tax preference performance statement exemption
—
Effective date
—
2024 c 261 ss 2-9:
See notes following RCW 82.04.241
.
Effective date
—
2017 3rd sp.s. c 37 ss 101-104, 403, 503, 506, 508, 510, 512, 514, 516, 518, 520, 522, 524, 526, 703, 705, 707, and 801-803:
See note following RCW 82.04.2404
.
Expiration date
—
2017 3rd sp.s. c 37 ss 502, 505, 507, 509, 511, 513, 515, 517, 519, 521, 523, and 525:
See note following RCW 82.04.2404
.
Contingent effective date
—
2017 c 135; 2010 c 114:
See RCW 82.32.790
.
Effective date
—
2017 c 135:
See note following RCW 82.32.534
.
Finding
—
Intent
—
2010 c 114:
See note following RCW 82.32.534
.
Findings
—
Intent
—
2003 c 149:
See note following RCW 82.04.426
.
RCW 82.12.975
Computer parts and software related to the manufacture of commercial airplanes.
(Expires July 1, 2040.)
(1) The provisions of this chapter do not apply in respect to the use of computer hardware, computer peripherals, or software, not otherwise eligible for exemption under RCW 82.12.02565, used primarily in the development, design, and engineering of aerospace products or in providing aerospace services, or to the use of labor and services rendered in respect to installing the computer hardware, computer peripherals, or software.
(2) As used in this section, "peripherals," "aerospace products," and "aerospace services" have the same meanings as provided in RCW 82.08.975
.
(3) This section expires July 1, 2040.
[
2013 3rd sp.s. c 2 s 12
;
2008 c 81 s 3
;
2003 2nd sp.s. c 1 s 10
.]
NOTES:
Contingent effective date
—
2013 3rd sp.s. c 2:
See RCW 82.32.850
.
Findings
—
Intent
—
2013 3rd sp.s. c 2:
See note following RCW 82.32.850
.
Findings
—
Savings
—
Effective date
—
2008 c 81:
See notes following RCW 82.08.975
.
Finding
—
2003 2nd sp.s. c 1:
See note following RCW 82.04.4461
.
RCW 82.12.980
Exemptions
—
Labor, services, and personal property related to the manufacture of commercial airplanes.
(Expires July 1, 2040.)
(1) The provisions of this chapter do not apply with respect to the use of:
(a) Tangible personal property that will be incorporated as an ingredient or component in constructing new buildings for (i) a manufacturer engaged in the manufacturing of commercial airplanes or the fuselages or wings of commercial airplanes or (ii) a port district, political subdivision, or municipal corporation, to be leased to a manufacturer engaged in the manufacturing of commercial airplanes or the fuselages or wings of commercial airplanes; or
(b) Labor and services rendered in respect to installing, during the course of constructing such buildings, building fixtures not otherwise eligible for the exemption under RCW 82.08.02565
(2)(b).
(2) The eligibility requirements, conditions, and definitions in RCW 82.08.980
apply to this section, including the filing of a complete annual tax performance report with the department under RCW 82.32.534
.
(3) This section expires July 1, 2040.
[
2017 c 135 s 33
;
2013 3rd sp.s. c 2 s 4
;
2010 c 114 s 132
;
2003 2nd sp.s. c 1 s 12
.]
NOTES:
Effective date
—
2017 c 135:
See note following RCW 82.32.534
.
Contingent effective date
—
2013 3rd sp.s. c 2:
See RCW 82.32.850
.
Findings
—
Intent
—
2013 3rd sp.s. c 2:
See note following RCW 82.32.850
.
Application
—
Finding
—
Intent
—
2010 c 114:
See notes following RCW 82.32.534
.
Finding
—
2003 2nd sp.s. c 1:
See note following RCW 82.04.4461
.
RCW 82.12.983
Exemptions
—
Wax and ceramic materials.
The provisions of this chapter do not apply with respect to the use of wax and ceramic materials used to create molds consumed during the process of creating ferrous and nonferrous investment castings used in industrial applications.
[
2010 c 225 s 2
.]
NOTES:
Reviser's note:
Chapter 6, Laws of 2015 3rd sp.s. was signed by the governor on July 1, 2015. 2015 3rd sp.s. c 6 s 1202 removed the expiration date of 2010 c 225 ss 1 and 2 by repealing
2010 c 225 s 4
.
Tax preference performance statement
—
Tax preference intended to be permanent
—
2015 3rd sp.s. c 6:
See notes following RCW 82.08.983
.
Effective date
—
2010 c 225:
See note following RCW 82.08.983
.
RCW 82.12.985
Exemptions
—
Insulin.
The provisions of this chapter shall not apply in respect to the use of insulin by humans.
[
2004 c 153 s 103
.]
NOTES:
Retroactive effective date
—
Effective date
—
2004 c 153:
See note following RCW 82.08.0293
.
RCW 82.12.986
Exemptions
—
Eligible server equipment
—
Eligible power infrastructure
—
Computer data centers.
(Expires July 1, 2053.)
(1)(a) An exemption from the tax imposed by RCW 82.12.020
is provided for the use by qualifying businesses or qualifying tenants of eligible server equipment to be installed, without intervening use, in an eligible computer data center for which an exemption certificate under RCW 82.08.986
has been issued, and to the use of labor and services rendered in respect to installing such server equipment.
(b) Until July 1, 2048, this exemption also applies to the use by a qualifying business or qualifying tenant of eligible power infrastructure, including labor and services rendered in respect to installing, repairing, altering, or improving such infrastructure at an eligible computer data center for which an exemption certificate under RCW 82.08.986
has been issued.
(c) The exemptions provided in this section expire July 1, 2048.
(2) A qualifying business or a qualifying tenant is not eligible for the exemption under this section unless the department issued an exemption certificate to the qualifying business or a qualifying tenant for the exemption provided in RCW 82.08.986
.
(3) The definitions and requirements in RCW 82.08.986
apply to this section.
(4) The exemption provided in subsection (1) of this section does not apply to the use of eligible server equipment and eligible power infrastructure, and the labor and services provided in subsection (1) of this section, if first used by qualifying businesses or qualifying tenants on or after July 1, 2048.
(5) This section expires July 1, 2053.
[
2022 c 267 s 4
;
2015 3rd sp.s. c 6 s 303
;
2012 2nd sp.s. c 6 s 304
;
2010 1st sp.s. c 23 s 1602
;
2010 1st sp.s. c 1 s 3
.]
NOTES:
Tax preference performance statement
—
2022 c 267 ss 3-6:
See note following RCW 82.08.986
.
Findings
—
Intent
—
2022 c 267:
See note following RCW 82.08.986
.
Effective dates
—
2015 3rd sp.s. c 6:
See note following RCW 82.04.4266
.
Tax preference performance statement
—
2015 3rd sp.s. c 6 ss 302 and 303:
See note following RCW 82.08.986
.
Intent
—
Finding
—
2012 2nd sp.s. c 6 ss 302, 303, and 304:
See note following RCW 82.08.986
.
Existing rights, liabilities, or obligations
—
Effective dates
—
Contingent effective dates
—
2012 2nd sp.s. c 6:
See notes following RCW 82.04.29005
.
Effective date
—
2010 1st sp.s. c 23:
See note following RCW 82.32.655
.
Findings
—
Intent
—
2010 1st sp.s. c 23:
See notes following RCW 82.04.220
.
Intent
—
Finding
—
Effective date
—
2010 1st sp.s. c 1:
See notes following RCW 82.08.986
.
RCW 82.12.9861
Exemptions
—
Eligible server equipment
—
Eligible power infrastructure
—
Computer data centers in counties with populations over 800,000.
(Expires July 1, 2043.)
(1) An exemption from the tax imposed by RCW 82.12.020
is provided for the use by qualifying businesses or qualifying tenants of eligible server equipment to be installed, without intervening use, in an eligible computer data center, and to the use of labor and services rendered in respect to installing such server equipment. The exemption also applies to the use by a qualifying business or qualifying tenant of eligible power infrastructure, including labor and services rendered in respect to installing, repairing, altering, or improving such infrastructure.
(2) The exemption provided in this section does not apply to any person for whom the exemption under RCW 82.08.9861
does not apply.
(3) A qualifying business or a qualifying tenant claiming an exemption under this section must complete an annual tax performance report as required in RCW 82.32.534
. The report must identify construction firm names and employment levels used for constructing, renovating, refurbishing, or remodeling the data centers.
(4) The definitions and requirements in RCW 82.08.9861
apply to this section.
(5) The exemption provided in subsection (1) of this section does not apply to the use of eligible server equipment and eligible power infrastructure, and the labor and services provided in subsection (1) of this section, if first used by qualifying businesses or qualifying tenants on or after July 1, 2038.
(6) This section expires July 1, 2043.
[
2022 c 267 s 6
.]
NOTES:
Tax preference performance statement
—
2022 c 267 ss 3-6:
See note following RCW 82.08.986
.
Findings
—
Intent
—
2022 c 267:
See note following RCW 82.08.986
.
RCW 82.12.989
Exemptions
—
Internet and telecommunications infrastructure.
(Expires January 1, 2030.)
(1) Provided an exemption certificate has been issued pursuant to RCW 82.08.989, the provisions of this chapter do not apply with respect to the use of:
(a) Labor and services rendered in respect to the installation of any equipment or other tangible personal property incorporated into a qualified infrastructure project; and
(b) Building materials, telecommunications equipment, and tangible personal property incorporated into a qualified infrastructure project.
(2) The exemption provided in subsection (1) of this section does not apply to local use taxes.
(3) All of the eligibility requirements, conditions, limitations, and definitions in RCW 82.08.989
apply to this section.
(4) For purposes of this section, "local use tax" means a use tax imposed by a local government under the authority of chapter
82.14
or
81.104
RCW.
(5) This section expires January 1, 2030.
[
2023 c 355 s 2
.]
NOTES:
Tax preference performance statement exemption
—
Effective date
—
2023 c 355:
See notes following RCW 82.08.989
.
RCW 82.12.994
Exemptions
—
Zero emission buses.
(1) The provisions of this chapter do not apply with respect to the use of zero emission buses purchased by a transit agency or by a federally recognized Indian tribe to provide public transportation services.
(2) For the purposes of this section.
(a) "Transit agency" means a city-owned transit system, county transportation authority, metropolitan municipal corporation, public transportation benefit area, unincorporated transportation benefit area, or regional transit authority.
(b) "Zero emissions bus" means a bus that emits no exhaust gas from the onboard source of power, other than water vapor.
(3) The exemption under this section expires after the last day of the calendar month immediately following the month the department determines the total amount of exemptions under this section and RCW 82.08.994
issued reaches or exceeds $14,000,000.
[
2025 c 417 s 810
.]
NOTES:
Effective date
—
2025 c 417 ss 101-103, 406, 701-709, 808-814, 1102, 1103, and 1305:
See note following RCW 82.38.030
.
Tax preference performance statement
—
2025 c 417 ss 809 and 810:
See note following RCW 82.08.994
.
Findings
—
Intent
—
2025 c 417:
See note following RCW 82.38.030
.
RCW 82.12.995
Exemptions
—
Certain limited purpose public corporations, commissions, and authorities.
(1) The provisions of this chapter do not apply with respect to the use of personal property and services provided by a public corporation, commission, or authority created under RCW 35.21.660
or
35.21.730
to an eligible entity.
(2) For purposes of this section, "eligible entity" means a limited liability company, a limited partnership, or a single asset entity, described in RCW 82.04.615
.
[
2009 c 535 s 622
;
2007 c 381 s 3
.]
NOTES:
Intent
—
Construction
—
2009 c 535:
See notes following RCW 82.04.192
.
RCW 82.12.996
Exemptions
—
Battery-powered electric marine propulsion systems
—
Qualifying vessels.
(Expires July 1, 2030.)
(1) The tax imposed by RCW 82.12.020
does not apply to the use of:
(a) New battery-powered electric marine propulsion systems with continuous power greater than fifteen kilowatts;
(b) New vessels equipped with propulsion systems that qualify under (a) of this subsection;
(c)(i) Batteries and battery packs used to exclusively power electric marine propulsion systems or hybrid electric marine propulsion systems, if such systems operate with a continuous power greater than fifteen kilowatts;
(ii) Labor and services rendered in respect to installing, repairing, altering, or improving batteries or battery packs that qualify under (c)(i) of this subsection; and
(d)(i) New shoreside batteries purchased and installed for the purpose of reducing grid demand when charging electric and hybrid vessels;
(ii) Labor and services rendered in respect to installing, altering, or improving shoreside batteries; and
(iii) Tangible personal property that will become a component of shoreside batteries infrastructure.
(2) Sellers may make tax exempt sales under this section only if the buyer provides the seller with an exemption certificate in a form and manner prescribed by the department. The seller must retain a copy of the certificate for the seller's files.
(3) The definitions in RCW 82.08.996
apply to this section.
(4) This section expires July 1, 2030.
[
2020 c 341 s 2
;
2019 c 287 s 22
.]
NOTES:
Effective date
—
2020 c 341:
See note following RCW 82.08.996
.
Tax preference performance statement
—
2020 c 341 ss 1 and 2; 2019 c 287 ss 21 and 22:
See note following RCW 82.08.996
.
Effective date
—
2019 c 287 ss 1-7, 12, and 14-23:
See note following RCW 28B.30.903
.
Findings
—
Intent
—
2019 c 287:
See note following RCW 28B.30.903
.
RCW 82.12.998
Exemptions
—
Weatherization of a residence.
(1) The provisions of this chapter do not apply to the use of tangible personal property used in the weatherization of a residence under the weatherization assistance program under chapter
70A.35
RCW. The exemption only applies to tangible personal property that becomes a component of the residence.
(2) "Residence" and "weatherization" have the meanings provided in RCW 70A.35.020
.
[
2020 c 20 s 1481
;
2008 c 92 s 2
.]
RCW 82.12.999
Exemptions
—
Joint municipal utility services authorities.
The tax levied by RCW 82.12.020
shall not apply to any sales, or uses by, or transfers made, to or from a joint municipal utility services authority formed under chapter
39.106
RCW and any of its members.
[
2011 c 258 s 13
.]
NOTES:
Short title
—
Purpose
—
Intent
—
2011 c 258:
See RCW 39.106.010
.
RCW 82.12.9993
Exemptions
—
Food, drinks, or meals furnished by a senior living community.
This chapter does not apply to food, drinks, or meals furnished by a senior living community to tenants as part of a rental or residency agreement for which no separate charge is made, regardless of whether the tenant is a resident for purposes of chapter
18.20
or
18.390
RCW.
[
2023 c 416 s 3
.]
NOTES:
Tax preference performance statement exemption
—
Automatic expiration date exemption
—
2023 c 416:
"RCW 82.32.805
and
82.32.808
do not apply to this act." [
2023 c 416 s 4
.]
RCW 82.12.9994
Exemptions
—
Bottled water
—
Prescription use.
(1) The provisions of this chapter do not apply in respect to the use of bottled water dispensed or to be dispensed to patients pursuant to a prescription for use in the cure, mitigation, treatment, or prevention of disease or medical condition.
(2) For the purposes of this section, "prescription" has the same meaning as provided in RCW 82.08.9994
.
[
2017 3rd sp.s. c 28 s 104
.]
NOTES:
Reviser's note:
The tax preference enacted in section 104, chapter 28, Laws of 2017 3rd sp. sess. expires January 1, 2028, pursuant to the automatic expiration date in RCW 82.32.805
(1)(a).
Existing rights and liability
—
Severability
—
Application
—
Effective dates
—
2017 3rd sp.s. c 28:
See notes following RCW 82.08.0531
.
RCW 82.12.99941
Exemptions
—
Bottled water
—
Primary water source unsafe.
The provisions of this chapter do not apply in respect to the use of bottled water by persons whose primary source of drinking water is unsafe as provided in RCW 82.08.99941
.
[
2017 3rd sp.s. c 28 s 106
.]
NOTES:
Reviser's note:
The tax preference enacted in section 106, chapter 28, Laws of 2017 3rd sp. sess. expires January 1, 2028, pursuant to the automatic expiration date in RCW 82.32.805
(1)(a).
Existing rights and liability
—
Severability
—
Application
—
Effective dates
—
2017 3rd sp.s. c 28:
See notes following RCW 82.08.0531
.
RCW 82.12.9995
Exemptions
—
Restaurant employee meals.
(1) The provisions of this chapter do not apply in respect to a meal provided without specific charge by a restaurant to its employees.
(2) For the purposes of this section, the definitions in RCW 82.08.9995
apply.
[
2015 c 86 s 304
;
2011 c 55 s 3
.]
NOTES:
Effective date
—
2011 c 55:
See note following RCW 82.08.9995
.
RCW 82.12.9997
Exemptions
—
Cannabis, useable cannabis, cannabis concentrates, and cannabis-infused products covered by cannabis agreement between state and tribe.
The taxes imposed by this chapter do not apply to the use of cannabis, useable cannabis, cannabis concentrates, and cannabis-infused products covered by an agreement entered into under RCW 43.06.490
. "Cannabis," "useable cannabis," "cannabis concentrates," and "cannabis-infused products" have the same meaning as defined in RCW 69.50.101
. The provisions of RCW 82.32.805
and
82.32.808
do not apply to this section.
[
2022 c 56 s 8
;
2022 c 16 s 159
;
2015 c 207 s 5
.]
NOTES:
Reviser's note:
This section was amended by 2022 c 16 s 159 and by 2022 c 56 s 8, each without reference to the other. Both amendments are incorporated in the publication of this section under RCW 1.12.025
(2). For rule of construction, see RCW 1.12.025
(1).
Intent
—
Finding
—
2022 c 16:
See note following RCW 69.50.101
.
Intent
—
Finding
—
2015 c 207:
See note following RCW 43.06.490
.
RCW 82.12.9998
Exemptions
—
Cannabis concentrates, useable cannabis, or cannabis-infused products
—
Products containing low amounts of THC.
(1) The provisions of this chapter do not apply to:
(a) The use of cannabis concentrates, useable cannabis, or cannabis-infused products, identified by the department of health in rules adopted under RCW 69.50.375
(4) in chapter 246-70 WAC as being a compliant cannabis product, by qualifying patients or designated providers who have been issued recognition cards and have obtained such products from a cannabis retailer with a medical cannabis endorsement.
(b) The use of products containing THC with a THC concentration of 0.3 percent or less by qualifying patients or designated providers who have been issued recognition cards and have obtained such products from a cannabis retailer with a medical cannabis endorsement.
(c)(i) Cannabis retailers with a medical cannabis endorsement with respect to:
(A) Cannabis concentrates, useable cannabis, or cannabis-infused products; or
(B) Products containing THC with a THC concentration of 0.3 percent or less;
(ii) The exemption in this subsection (1)(c) applies only if such products are provided at no charge to a qualifying patient or designated provider who has been issued a recognition card. Each such retailer providing such products at no charge must maintain information establishing eligibility for this exemption in the form and manner required by the department.
(d) The use of cannabis concentrates, useable cannabis, or cannabis-infused products, identified by the department of health under RCW 69.50.375
to have a low THC, high CBD ratio, and to be beneficial for medical use, purchased from cannabis retailers with a medical cannabis endorsement.
(e) Health care professionals with respect to the use of products containing THC with a THC concentration of 0.3 percent or less provided at no charge by the health care professionals under RCW 69.51A.280
. Each health care professional providing such products at no charge must maintain information establishing eligibility for this exemption in the form and manner required by the department.
(f) The use of topical, noningestible products containing THC with a THC concentration of 0.3 percent or less by qualifying patients when purchased from or provided at no charge by a health care professional under RCW 69.51A.280
.
(g) The use of:
(i) Cannabis, cannabis concentrates, useable cannabis, cannabis-infused products, or products containing THC with a THC concentration of 0.3 percent or less, by a cooperative and its members, when produced by the cooperative; and
(ii) Any nonmonetary resources and labor by a cooperative when contributed by its members. However, nothing in this subsection (1)(g) may be construed to exempt the individual members of a cooperative from the tax imposed in RCW 82.12.020
on the use of any property or services purchased by the member and contributed to the cooperative.
(2) The definitions in RCW 82.08.9998
apply to this section.
[
2022 c 16 s 160
;
2019 c 393 s 5
;
2015 2nd sp.s. c 4 s 208
.]
NOTES:
Intent
—
Finding
—
2022 c 16:
See note following RCW 69.50.101
.
Effective date
—
2019 c 393:
See note following RCW 69.50.345
.
Intent
—
2019 c 393:
See note following RCW 69.50.346
.
Applicability
—
2015 2nd sp.s. c 4 ss 207 and 208:
See note following RCW 82.08.9998
.
Findings
—
Intent
—
Effective dates
—
2015 2nd sp.s. c 4:
See notes following RCW 69.50.334
.
RCW 82.12.9999
Exemptions
—
Vehicles using clean alternative fuels and electric vehicles.
(Expires August 1, 2028.)
(1) Beginning August 1, 2019, beginning with sales made or lease agreements signed on or after the qualification period start date:
(a) The provisions of this chapter do not apply as provided in (b) of this subsection in respect to the use of new or used passenger cars, light duty trucks, and medium duty passenger vehicles that:
(i) Are exclusively powered by a clean alternative fuel; or
(ii) Use at least one method of propulsion that is capable of being reenergized by an external source of electricity and are capable of traveling at least 30 miles using only battery power; and
(iii)(A) Have a fair market value at the time use tax is imposed for purchased vehicles that:
(I) For a vehicle that is a new vehicle at the time of the purchase date or the date the lease agreement was signed, does not exceed $45,000; or
(II) For a vehicle that is a used vehicle at the time of the purchase date or the date the lease agreement was signed, does not exceed $30,000; or
(B) Have a fair market value at the inception of the lease for leased vehicles that:
(I) For a vehicle that is a new vehicle at the time of the purchase date or the date the lease agreement was signed, does not exceed $45,000; or
(II) For a vehicle that is a used vehicle at the time of the purchase date or the date the lease agreement was signed, does not exceed $30,000;
(b)(i) The exemption in this section is only applicable for up to the amounts specified in (b)(ii) or (iii) of this subsection of:
(A) The total amount of the vehicle's purchase price, for sales made; or
(B) The total lease payments made plus any additional purchase price of the leased vehicle if the original lessee purchases the leased vehicle before the qualification period end date, for lease agreements signed.
(ii) Based on the purchase date or the date the lease agreement was signed of the vehicle if the vehicle is a new vehicle at the time of the purchase date or the date the lease agreement was signed:
(A) From the qualification period start date until July 31, 2021, the maximum amount eligible under (b)(i) of this subsection is $25,000;
(B) From August 1, 2021, until July 31, 2023, the maximum amount eligible under (b)(i) of this subsection is $20,000;
(C) From August 1, 2023, until July 31, 2025, the maximum amount eligible under (b)(i) of this subsection is $15,000.
(iii) If the vehicle is a used vehicle at the time of the purchase date or the date the lease agreement was signed, the maximum amount eligible under (b)(i) of this subsection is $16,000.
(2)(a) The seller must keep records necessary for the department to verify eligibility under this section, except as provided in (b) of this subsection. A person claiming the exemption must also submit itemized information to the department for all vehicles for which an exemption is claimed that must include the following: Vehicle make; vehicle model; model year; whether the vehicle has been sold or leased; date of sale or start date of lease; length of lease; fair market value of the vehicle; and the total amount qualifying for the incentive claimed for each vehicle, in addition to the future monthly amount to be claimed for each leased vehicle. This information must be provided in a form and manner prescribed by the department.
(b) (a) of this subsection applies only if the seller or person claiming the exemption is a vehicle dealer, as defined under RCW 46.70.011
. When the seller is not a vehicle dealer, the department of licensing must establish a process for granting the tax exemption under this section for use tax otherwise collected at the time the ownership of a vehicle is transferred when the vehicle qualifies for the use tax exemption under subsection (1)(a) of this section, and must provide any information required under (a) of this subsection that it obtains as part of the vehicle titling and registration process for these vehicles to the department on at least a quarterly basis.
(3)(a) Vehicles purchased or leased vehicles for which the lease agreement was signed after the qualification period end date do not qualify for the exemption under this section.
(b) All leased vehicles that qualified for the exemption under this section before the qualification period end date must continue to receive the exemption as described under subsection (1)(b) of this section on any lease payments due through the remainder of the lease before August 1, 2028.
(4) The definitions in RCW 82.08.9999
apply to this section.
(5) This section is supported by the revenues generated in RCW 46.17.324, and therefore takes effect only if RCW 46.17.324
is enacted by June 30, 2019.
(6) This section expires August 1, 2028.
[
2022 c 182 s 306
;
2019 c 287 s 10
.]
NOTES:
Intent
—
Effective date
—
2022 c 182:
See notes following RCW 70A.65.240
.
Tax preference performance statement
—
2019 c 287 ss 8-14:
See note following RCW 82.04.4496
.
Findings
—
Intent
—
2019 c 287:
See note following RCW 28B.30.903
.
RCW 82.12.99991
Tax preferences
—
Expiration dates.
See RCW 82.32.805
for the expiration date of new tax preferences for the tax imposed under this chapter.
[
2013 2nd sp.s. c 13 s 1706
.]
NOTES:
Effective date
—
2013 2nd sp.s. c 13:
See note following RCW 82.04.43393
.