Brief Description: Enhancing air quality at truck stops.

Sponsors: Senate Committee on Water, Energy & Environment (originally sponsored by Senators Fraser, Pridemore, Honeyford, Poulsen, Mulliken, Regala, Rockefeller, Delvin and Kline).

Senate Committee on Water, Energy & Environment
Senate Committee on Ways & Means
House Committee on Finance

Background: The air quality around idling heavy duty diesel vehicles is known to contribute to unhealthy conditions by releasing volatile organic compounds, carbon monoxide, carbon dioxide, nitrogen oxides, and particulates. These idling vehicles also contribute to driver fatigue through exposure to noise, vibration, and elevated levels of carbon monoxide and other pollutants.

Several states have begun programs to provide infrastructure to support the electrification of truck stops. The projects alleviate the need for trucks to idle for long periods of time. These projects are generally of two types, "on-board" and "stand-alone" electrification projects.

On-board electrification projects require the truck or vessel to be equipped with the necessary components to accept electrical power. Stand-alone projects provide an independent system that supplies the vehicle's needs for heating, ventilation, and air conditioning without modification to the vehicle.

The business and occupation (B&O) tax is Washington's major business tax. The B&O tax is imposed on the gross receipts of business activities conducted within the state. The state retail sales tax rate is 6.5 percent and is imposed on the retail sale of most items of tangible personal property and some services. The use tax is imposed on the use of an item in this state when the acquisition of the item has not been subject to sales tax. Use tax is equal to the sales tax rate multiplied by the value of the property used.

Summary: A business and occupation tax deduction is provided for amounts received from the retail sale, lease, or rental of auxiliary power to heavy duty diesel vehicles through on-board or stand-alone electrification systems.

A sales and use tax exemption applies to sales and use of machinery and equipment integral and necessary for the retail sales, lease, or rental of auxiliary power to heavy duty diesel vehicles through on-board or stand-alone electrification systems. An exemption is also provided for charges made for labor and services with respect to the construction of these facilities.

Sales and use tax exemptions are also provided for parts and labor necessary to enable heavy duty diesel trucks to accept power for onboard electrification systems.

The tax incentives expire on July 1, 2015.

Votes on Final Passage:

Senate      47   0
House      95   3

Effective: June 7, 2006