6111-S2.E AMH MCCO H5962.4

E2SSB 6111  - H AMD1413
     By Representative McCoy

WITHDRAWN 03/06/2008

     Strike everything after the enacting clause and insert the following:

"NEW SECTION.  Sec. 1   A new section is added to chapter 82.08 RCW to read as follows:
     (1) The tax levied by RCW 82.08.020 does not apply to sales of machinery and equipment used directly in generating tidal or wave energy, 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 at least two hundred kilowatts of electricity and provides the seller with an exemption certificate in a form and manner prescribed by the department. The seller shall retain a copy of the certificate for the seller's files.
     (2) For purposes of this section and section 2 of this act:
     (a) "Machinery and equipment" has the same meaning as provided in RCW 82.08.02567.
     (b) Machinery and equipment is "used directly" in generating electricity with tidal or wave energy if it provides any part of the process that captures the energy of the tidal or wave energy.
     (3) This section expires June 30, 2018.

NEW SECTION.  Sec. 2   A new section is added to chapter 82.12 RCW to read as follows:
     (1) The provisions of this chapter do not apply with respect to machinery and equipment used directly in generating at least two hundred kilowatts of electricity using tidal or wave energy as the principal source of power, or to the use of labor and services rendered in respect to installing such machinery and equipment.
     (2) The definitions in section 1 of this act apply to this section.
     (3) This section expires June 30, 2018."

     Correct the title.

EFFECT:  Removes a public utility tax deduction for costs of producing electrical energy from tidal or wave energy devices. Removes provisions requiring the Department of Ecology to establish a wave and tidal energy work group to review issues relating to the siting and operation of tidal and wave energy projects. Increases the minimum generating capacity of a wave or tidal facility eligible to receive the sales and use tax exemption to two hundred kilowatts.

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