Washington State

House of Representatives

Office of Program Research

BILL

ANALYSIS

Technology, Energy & Communications Committee

HB 1857

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: Concerning solar water heating tax exemptions.

Sponsors: Representative Chase.

Brief Summary of Bill

  • Extends sales and use tax exemptions for certain solar hot water systems and solar hot water collectors to June 30, 2015.

  • Specifies that certain solar hot water heating components are exempt from the sales and use tax exemption.

Hearing Date: 2/12/09

Staff: Scott Richards (786-7156)

Background:

The purchase of certain solar hot water systems and solar hot water collectors that satisfy set industry standards are currently exempt from both sales and use taxes. The tax exemption also applies to solar heat exchangers and differential solar controllers. The repair and replacement of parts for these systems, collectors, exchangers, and controllers are exempt from both sales and use taxes.

Sales of or charges for labor and services installing, repairing, cleaning, altering, or improving solar hot water systems, collectors, exchangers and differential controllers are also exempt from both sales and use tax.

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

Summary of Bill:

All purchases of certain solar hot water systems and solar hot water collectors that satisfy set industry standards are exempt from both sales and use taxes. The tax exemption also applies to solar heat exchangers, differential solar controllers, and associated components. Additionally, the tax exemption applies to repair and replacement of parts for these systems, collectors, exchangers, and controllers.

Sales of or charges for labor and services installing, repairing, cleaning, altering, or improving solar hot water systems, collectors, heat exchangers, differential controllers, and associated components are also exempt from both sales and use tax.

The sales and use tax exemptions expire on June 30, 2015.

Appropriation: None.

Fiscal Note: Requested on January 30, 2009.

Effective Date: The bill takes effect 90 days after adjournment of the session in which the bill is passed.