_______________________________________________
HOUSE
BILL 1859
_______________________________________________
Passed
Legislature - 2001 Regular Session
State
of Washington 57th Legislature 2001 Regular Session
By
Read
first time 02/07/2001. Referred to Committee on Technology, Telecommunications
& Energy.
Exempting electric generating facilities using wind, solar
energy, landfill gas, or fuel cells from sales and use taxes.
AN
ACT Relating to exempting electric generating facilities using wind, solar
energy, landfill gas, or fuel cells from sales and use taxes; amending RCW
82.08.02567 and 82.12.02567; providing an effective date; providing expiration
dates; and declaring an emergency.
BE IT
ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec.
1. RCW
82.08.02567 and 1999 c 358 s 4 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 ((kilowatts)) watts of electricity and provides the
seller with an exemption certificate in a form and manner prescribed by the
department ((by rule)). 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 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, ((2005)) 2009.
Sec.
2. RCW
82.12.02567 and 1999 c 358 s 10 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 ((kilowatts))
watts of electricity using wind, sun, or landfill gas as the principal
source of power.
(2)
The definitions in RCW 82.08.02567 apply to this section.
(3)
This section expires June 30, ((2005)) 2009.
NEW
SECTION. Sec. 3. This
act is necessary for the immediate preservation of the public peace, health, or
safety, or support of the state government and its existing public
institutions, and takes effect July 1, 2001.
