H-0391.2  _______________________________________________

                          HOUSE BILL 1460

          _______________________________________________

State of Washington      56th Legislature     1999 Regular Session

By Representatives Poulsen, Crouse, Morris, Reardon, Ruderman, Cooper, DeBolt, Constantine, Wolfe, Kastama, Bush and Wood

Read first time 01/26/1999.  Referred to Committee on Technology, Telecommmunications & Energy.

Exempting wind or solar energy electric generating facilities from sales and use taxes. 

    AN ACT Relating to exempting electric generating facilities powered by wind or sun energy from sales and use taxes; amending RCW 82.08.02567 and 82.12.02567; providing an effective date; providing expiration dates; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

    Sec. 1.  RCW 82.08.02567 and 1998 c 309 s 1 are each amended to read as follows:

    (1) The tax levied by RCW 82.08.020 shall not apply to sales of machinery and equipment used directly in generating electricity using wind, sun, or landfill gas as the principal source of power, 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 not less than two hundred ((kilowatts)) watts of electricity and provides the seller with an exemption certificate in a form and manner prescribed by the department ((by rule, and the purchaser provides the department with a duplicate of the certificate or a summary of exempt sales as the department may require)).  The seller shall retain a copy of the certificate for the seller's files.

    (2) For purposes of this section and RCW 82.12.02567:

    (a) "Landfill gas" means biomass fuel of the type qualified for federal tax credits under 26 U.S.C. Sec. 29 collected from a landfill.  "Landfill" means a landfill as defined under RCW 70.95.030;

    (b) "Machinery and equipment" means industrial fixtures, devices, and support facilities that are integral and necessary to the generation of electricity using wind, sun, or landfill gas as the principal source of power;

    (c) "Machinery and equipment" does not include:  (I) Hand tools; (ii) property with a useful life of less than one year; (iii) repair parts required to restore machinery and equipment to normal working order; (iv) replacement parts that do not increase productivity, improve efficiency, or extend the useful life of machinery and equipment; (v) buildings; or (vi) building fixtures that are not integral and necessary to the generation of electricity that are permanently affixed to and become a physical part of a building;

    (d) Machinery and equipment is "used directly" in generating electricity by wind energy, solar energy, or landfill gas power if it provides any part of the process that captures the energy of the wind, sun, or landfill gas, converts that energy to electricity, and stores, transforms, or transmits that electricity for ((entry into)) operation in parallel with electric transmission and distribution systems.

    (3) This section expires June 30, ((2005)) 2009.

    Sec. 2.  RCW 82.12.02567 and 1998 c 309 s 2 are each amended to read as follows:

    (1) The provisions of this chapter shall not apply with respect to machinery and equipment used directly in generating not less than two hundred ((kilowatts)) watts of electricity using wind, sun, or landfill gas as the principal source of power((, but only when the user provides the department with:

    (a) An exemption certificate in a form and manner prescribed by the department within sixty days of the first use of such machinery and equipment in this state; or

    (b) An annual summary listing the machinery and equipment by January 31st of the year following the calendar year in which the machinery and equipment is first used in this state)).

    (2) The definitions in RCW 82.08.02567 apply to this section.

    (3) This section expires June 30, ((2005)) 2008.

NEW SECTION. Sec. 3.  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 July 1, 1999.

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