2023 Revised Code of Washington › Title 82 - Excise Taxes › Chapter 82.08 - Retail Sales Tax. › 82.08.810 - Exemptions—Air pollution control facilities at a thermal electric generation facility—Exceptions—Exemption certificate—Payments on cessation of operation.

RCW 82.08.810
Exemptions—Air pollution control facilities at a thermal electric generation facility—Exceptions—Exemption certificate—Payments on cessation of operation.
(1) For the purposes of this section, "air pollution control facilities" mean any treatment works, control devices and disposal systems, machinery, equipment, structures, property, property improvements, and accessories, that are installed or acquired for the primary purpose of reducing, controlling, or disposing of industrial waste that, if released to the outdoor atmosphere, could cause air pollution, or that are required to meet regulatory requirements applicable to their construction, installation, or operation.
(2) The tax levied by RCW 82.08.020 does not apply to:
(a) Sales of tangible personal property to a light and power business, as defined in RCW 82.16.010, for construction or installation of air pollution control facilities at a thermal electric generation facility; or
(b) Sales of, cost of, or charges made for labor and services performed in respect to the construction or installation of air pollution control facilities.
(3) The exemption provided under this section applies only to sales, costs, or charges:
(a) Incurred for air pollution control facilities constructed or installed after May 15, 1997, and used in a thermal electric generation facility placed in operation after December 31, 1969, and before July 1, 1975;
(b) If the air pollution control facilities are constructed or installed to meet applicable regulatory requirements established under state or federal law, including the Washington clean air act, chapter 70A.15 RCW; and
(c) For which the purchaser provides the seller with an exemption certificate, signed by the purchaser or purchaser's agent, that includes a description of items or services for which payment is made, the amount of the payment, and such additional information as the department reasonably may require.
(4) This section does not apply to sales of tangible personal property purchased or to sales of, costs of, or charges made for labor and services used for maintenance or repairs of pollution control equipment.
(5) If production of electricity at a thermal electric generation facility for any calendar year after 2002 and before 2023 falls below a twenty percent annual capacity factor for the generation facility, all or a portion of the tax previously exempted under this section in respect to construction or installation of air pollution control facilities at the generation facility shall be due as follows:
Portion of previously
Year event occurs
exempted tax due
2003
100%
2004
95%
2005
90%
2006
85%
2007
80%
2008
75%
2009
70%
2010
65%
2011
60%
2012
55%
2013
50%
2014
45%
2015
40%
2016
35%
2017
30%
2018
25%
2019
20%
2020
15%
2021
10%
2022
5%
2023
0%
(6) *RCW 82.32.393 applies to this section.
[ 2020 c 20 § 1473; 1997 c 368 § 2.]
NOTES:
*Reviser's note: RCW 82.32.393 expired December 31, 2015.
Findings—Intent—1997 c 368: "(1) The legislature finds that:
(a) Thermal electric generation facilities play an important role in providing jobs for residents of the communities where such plants are located; and
(b) Taxes paid by thermal electric generation facilities help to support schools and local and state government operations.
(2) It is the intent of the legislature to assist thermal electric generation facilities placed in operation after December 31, 1969, and before July 1, 1975, to update their air pollution control equipment and abate pollution by extending certain tax exemptions and credits so that such plants may continue to play a long-term vital economic role in the communities where they are located." [ 1997 c 368 § 1.]
Rules adoption—1997 c 368: "The department of revenue and the department of ecology may adopt rules to implement this act." [ 1997 c 368 § 15.]
Severability—1997 c 368: "If any provision of this act or its application to any person or circumstance is held invalid, the remainder of the act or the application of the provision to other persons or circumstances is not affected." [ 1997 c 368 § 16.]
Effective date—1997 c 368: "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 immediately [May 15, 1997]." [ 1997 c 368 § 17.]