2SSB 6111 -
By Senators Hobbs, Pridemore, Prentice, Carrell, Delvin, and Zarelli
ADOPTED 02/29/2008
On page 2, after line 28, insert the following:
"NEW SECTION. Sec. 2 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 not less than five 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 3 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. 3 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 not less than five
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 2 of this act apply to this section.
(3) This section expires June 30, 2018.
NEW SECTION. Sec. 4 A new section is added to chapter 82.16 RCW
to read as follows:
(1) In computing tax under this chapter, an amount equal to the
cost of production at the plant for consumption within the state of
Washington of electrical energy produced or generated from tidal or
wave energy is deducted from gross income.
(2) This section applies only to new facilities for the production
or generation of energy from tidal or wave energy on which construction
or installation is begun after January 1, 2008, and before January 1,
2018.
(3) Deductions under subsection (1) of this section are allowed for
a period not to exceed thirty years after the project is placed in
operation.
(4) The department of revenue, after consultation with the
utilities and transportation commission in the case of investor-owned
utilities and the governing bodies of locally regulated utilities, must
determine the eligibility of individual projects and measures for
deductions under this section."
2SSB 6111 -
By Senators Hobbs, Pridemore, Prentice, Carrell, Delvin, and Zarelli
ADOPTED 02/29/2008
On page 1, line 2 of the title, after "energy;" strike the remainder of the title and insert "adding a new section to chapter 43.31 RCW; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; adding a new section to chapter 82.16 RCW; and providing expiration dates."
EFFECT: Sales and use tax exemptions for machinery and equipment used for tidal and wave energy are provided until June 30, 2018. A business and occupation tax deduction is provided for the cost of production of the plant of tidal and wave energy if the facility was built between 2008 and 2018. The business and occupation tax deduction lasts for 30 years. To qualify for the exemptions a facility must produce at least 5 kilowatts of energy.