CERTIFICATION OF ENROLLMENT

SENATE BILL 6490

Chapter 152, Laws of 2004

58th Legislature
2004 Regular Session



FUEL CELLS--TAX EXEMPTION



EFFECTIVE DATE: 6/10/04

Passed by the Senate March 10, 2004
  YEAS 48   NAYS 0

BRAD OWEN
________________________________________    
President of the Senate
Passed by the House March 10, 2004
  YEAS 97   NAYS 0

FRANK CHOPP
________________________________________    
Speaker of the House of Representatives


 
CERTIFICATE

I, Milton H. Doumit, Jr., Secretary of the Senate of the State of Washington, do hereby certify that the attached is SENATE BILL 6490 as passed by the Senate and the House of Representatives on the dates hereon set forth.

MILTON H. DOUMIT JR.
________________________________________    
Secretary
Approved March 26, 2004.








GARY F. LOCKE
________________________________________    
Governor of the State of Washington
 
FILED
March 26, 2004 - 3:23 p.m.







Secretary of State
State of Washington


_____________________________________________ 

SENATE BILL 6490
_____________________________________________

Passed Legislature - 2004 Regular Session
State of Washington58th Legislature2004 Regular Session

By Senators Zarelli and Kline; by request of Department of Revenue and Department of General Administration

Read first time 01/21/2004.   Referred to Committee on Ways & Means.



     AN ACT Relating to exempting fuel cells from sales and use taxes; and amending RCW 82.08.02567 and 82.12.02567.

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

Sec. 1   RCW 82.08.02567 and 2001 c 213 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 fuel cells, 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 watts 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 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 fuel cells, wind, sun, or landfill gas as the principal source of power;
     (c) "Machinery and equipment" does not include: (i) Hand-powered 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 with fuel cells or 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 or operation in parallel with electric transmission and distribution systems;
     (e) "Fuel cell" means an electrochemical reaction that generates electricity by combining atoms of hydrogen and oxygen in the presence of a catalyst.
     (3) This section expires June 30, 2009.

Sec. 2   RCW 82.12.02567 and 2003 c 5 s 6 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 watts of electricity using fuel cells, wind, sun, or landfill gas 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 RCW 82.08.02567 apply to this section.
     (3) This section expires June 30, 2009.


         Passed by the Senate March 10, 2004.
         Passed by the House March 10, 2004.
         Approved by the Governor March 26, 2004.
         Filed in Office of Secretary of State March 26, 2004.