Washington § 82.96.050 - State and local energy excise taxes — Rates. (Effective January 1, 2028.)

(1) The rates of the state and local renewable energy excise taxes authorized in RCW 82.96.040 and 36.29.220 on qualified renewable energy facilities are as follows:

(a)(i) The state renewable energy excise tax rate is $968 per year per megawatt of nameplate capacity of alternating current power for a qualified renewable energy facility that uses solar energy to generate electricity.

(ii) The local renewable energy excise tax rate is $2,905 per year per megawatt of nameplate capacity of alternating current power for a qualified renewable energy facility that uses solar energy to generate electricity.

(b)(i) The state renewable excise tax rate is $1,200 per year per megawatt of nameplate capacity of alternating current power for a qualified renewable energy facility that uses wind energy to generate electricity.

(ii) The local renewable energy excise tax rate is $3,600 per year per megawatt of nameplate capacity of alternating current power for a qualified renewable energy facility that uses wind energy to generate electricity.

(2) The rates of the state and local renewable energy excise taxes authorized in RCW 82.96.040 and 36.29.220 on battery electric storage system are as follows:

(a) The state renewable energy excise tax is $156 per megawatt-hour of battery electric storage system capacity.

(b) The local renewable energy excise tax is $467 per megawatt-hour of battery electric storage system capacity.

(3) The rates in this section apply for the lifetime of the qualified renewable energy facility or the battery electric storage system or until the qualified renewable energy facility or the battery electric storage system repowers.

Joint legislative audit and review committee—Report—Intent—2026 c 260 s 105: "The joint legislative audit and review committee must review the tax rates contained in section 105 of this act and report to the legislature by October 31, 2031. The report must include:

(1) Estimates of what the taxpayer would have paid over the life cycle of the qualified renewable energy facilities and battery electric storage systems if the property remained subject to property taxes. The estimate must consider assumptions including the cost to construct, federal tax credits, trend factors, depreciation, and the average county tax rates across Washington;

(2) Comparisons to the qualified renewable energy facilities' and battery electric storage systems' economic and tax environments of other states;

(3) An analysis of the taxation of renewable energy related personal property owned by centrally assessed utility systems that are subject to the provisions of chapter 84.12 RCW and recommendations on how qualified renewable energy facilities and battery electric storage systems owned or operated by centrally assessed utilities can be transitioned into the renewable energy excise tax imposed pursuant to this act;

(4) An evaluation of any changes in the average per megawatt construction costs for different types of projects, the value of any federal or state tax incentives, the impact of technology improvements on the costs to construct projects, and any change in the annual project equipment depreciation guidelines compared to the previous five-year period; and

(5)(a) Recommendations, based on the findings, regarding future rate adjustments to ensure that taxpayers, the state, and local taxing districts are not disadvantaged by the renewable energy excise tax when new qualified renewable energy facilities and battery electric storage systems are subject to the renewable energy excise tax.

(b) The report must not recommend changes to the renewable energy excise tax rate for qualified renewable energy facilities and battery electric storage systems that are paying the taxes imposed by this act.

(c) The legislature intends that any future rate adjustments will be announced three years before the effective date of the rate change and that rate changes will not occur before January 1, 2034.

(6) The joint legislative audit and review committee shall collect data from the department of revenue, county assessors, and other relevant entities during the course of its review." [ 2026 c 260 s 108.]

Intent—2026 c 260: See note following RCW 43.63A.770.

Tax preference performance statement exemption—Automatic expiration date exemption—2026 c 260: See note following RCW 82.96.040.

Effective date—2026 c 260: See note following RCW 82.96.005.