Developers also say the state sales tax on construction equipment makes building a power plant in Washington more expensive. Last year a bill giving tax breaks to the Sumas 2 plant was defeated in the Legislature. The sales tax levy in Washington state is 8 percent on equipment. If a company is looking to build a plant, chances are they will build it in Idaho, Oregon or Montana because they don't have a tax on equipment. The NW Energy Coalition opposes any such tax breaks, Dixon said.
Natural gas is the most competitive form of electrical generation right now.
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