Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Technology, Energy & Communications Committee

HB 1188

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Description: Providing sales and use tax exemptions for solar hot water components.

Sponsors: Representatives Chase, Hinkle, Kagi and Ormsby.

Brief Summary of Bill

  • Creates temporary sales and use tax exemptions for solar water heating components.

Hearing Date: 1/28/09

Staff: Jason Callahan (786-7117)

Background:

The purchase of, and labor related to, certain solar hot water systems are currently exempt from both sales and use taxes. The tax exemption applies to solar water heaters, heat exchangers, and differential solar controllers that satisfy set industry standards. The tax exemption applies to both the water system and its repair and replacement parts.

The sales and use tax exemptions expire on July 1, 2009.

Summary of Bill:

Temporary tax exemptions are created for solar water heating components. All purchases of solar water heating components, including repair and replacement parts, along with the labor necessary to install, repair, clean, alter, or improve solar water heating components are exempt from sales tax. In addition, an exemption is also created to the use tax for solar water heating components and their installation.

The tax exemptions expire on June 30, 2015.

Appropriation: None.

Fiscal Note: Requested on January 22, 2009.

Effective Date: June 30, 2009.