(1)(a) A qualified renewable energy facility or a battery electric storage system that commences operation or repowers after July 1, 2026, but before January 1, 2028, may opt into the taxes imposed under RCW
82.96.040 and
36.29.220 and receive a property tax exemption under RCW
84.36.690 if:
(i) The qualified renewable energy facility or battery electric storage system provides to the legislative authority of the county in which the qualified renewable energy facility or battery electric storage system is located notice of its intent to opt into the taxes imposed under RCW
82.96.040 and
36.29.220 by September 1, 2026; and
(ii) The legislative authority of the county in which the qualified renewable energy facility or battery electric storage system is located has authorized the imposition of a local renewable energy excise tax before March 1, 2028.
(b)(i) If a qualified renewable energy facility or battery electric storage system opts into the taxes imposed under RCW
82.96.040 and
36.29.220 pursuant to this subsection (1), then the value of any personal property is exempt from property tax, as provided in RCW
84.36.690, beginning in the calendar year in which the taxes under RCW
82.96.040 and
36.29.220 are first imposed.
(ii) Local property taxes subject to the limitations of chapter
84.55 RCW must be reduced as necessary to prevent the exemption created in (b)(i) of this subsection (1) from resulting in a higher tax rate than would have occurred in the absence of the exemption.
(2) A qualified renewable energy facility or battery electric storage system that submitted a completed application under chapter
43.21C RCW as of November 2025, and commences operation after July 1, 2026, but before December 31, 2034, may opt into the taxes imposed under RCW
82.96.040 and
36.29.220 and receive a personal property tax exemption under RCW
84.36.690.
(a) To opt in, the qualified renewable energy facility or the battery electric storage system must notify the department and county assessor of its intent to opt in by April 30th. Notice must occur in the manner and form required by the department and the county assessor.
(b) The assessment of taxes under RCW
82.96.040 and
36.29.220 and the personal property tax exemption under RCW
84.36.690 apply January 1st of the immediately following calendar year.
(3)(a) A qualified renewable energy facility or battery electric storage system that does not meet the requirements of subsection (2) of this section, and that commences construction, becomes operational, or repowers after January 1, 2028, is subject to the personal property tax exemption in RCW
84.36.690 and the taxes imposed pursuant to RCW
82.96.040 and
36.29.220.
(b) The qualified renewable energy facility or the battery electric storage system must notify the department and county assessor at the time that the facility or system commences construction or repowers. Notice must occur in the manner and form required by the department and the county assessor.
(4)(a) A qualified renewable energy facility or a battery electric storage system which has been in operation for 25 years since the facility or system commenced operation or last repowered, may opt into the taxes imposed under RCW
82.96.040 and
36.29.220 and receive a personal property tax exemption under RCW
84.36.690.
(b) To opt in under this subsection (4), the qualified renewable energy facility or the battery electric storage system must notify the department and county assessor of its intent to opt in by April 30th. Notice must occur in the manner and form required by the department and the county assessor.
(c) The assessment of taxes under RCW
82.96.040 and
36.29.220 and the personal property tax exemption under RCW
84.36.690 apply January 1st of the immediately following calendar year.
(5) The personal property tax exemption in RCW
84.36.690 and the taxes imposed pursuant to RCW
82.96.040 and
36.29.220 automatically apply to a qualified renewable energy facility or a battery electric storage system after the facility or system has operated for 35 years or more, as determined by the county assessor, starting from the date on which the facility or system commenced operation or last repowered.
(6) The county assessor must determine if a qualified renewable energy facility or battery electric storage system meets the requirements of this section.
