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HOUSE BILL 2290
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AS AMENDED BY THE SENATE
Passed Legislature - 1996 Regular Session
State of Washington 54th Legislature 1996
Regular Session
By
Read first time 01/09/96. Referred to Committee
on Finance.
Exempting construction of wind
energy and solar electric generating facilities from sales and use tax.
AN ACT Relating to
exempting construction of wind energy and solar electric generating facilities
from sales and use tax; adding a new section to chapter 82.08 RCW; adding a new
section to chapter 82.12 RCW; providing an effective date; and providing
expiration dates.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF
WASHINGTON:
NEW SECTION. Sec.
1. A new section is added
to chapter 82.08 RCW 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 the wind or sun energy 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 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 section 2 of this act:
(a) "Machinery and
equipment" means industrial fixtures, devices, and support facilities that
are integral and necessary to the generation of electricity using the wind or
sun energy as the principal source of power;
(b) "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;
(c) Machinery and
equipment is "used directly" in generating electricity by wind or
solar power if it provides any part of the process that captures the energy of
the wind or sun, converts that energy to electricity, and transforms or
transmits that electricity for entry into electric transmission and
distribution systems.
(3) This section
expires June 30, 2005.
NEW SECTION. Sec.
2. A new section is added
to chapter 82.12 RCW 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 of electricity using
the wind or sun 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
section 1 of this act apply to this section.
(3) This section
expires June 30, 2005.
NEW
SECTION. Sec. 3. This act shall take
effect July 1, 1996.
