Senate Bill Report SB 6243 — Business and occupation tax exemption to encourage clean technology manufacturing
Summary
Senate Bill Report on SB 6243, as of January 25, 2024, for the Senate Committee on Business, Financial Services, Gaming & Trade, with committee activity listed as 1/25/24. The bill is titled an act relating to providing a state business and occupation tax exemption to encourage clean technology manufacturing in Washington, and the sponsors listed are Senators Mullet, Billig, Lovick, Nguyen and Shewmake. The Summary of Bill states that beginning January 1, 2025, manufacturers engaged in clean technology manufacturing are exempt from the B&O tax, that the exemption expires January 1, 2035, and that beneficiaries must submit an annual tax performance report. The report lists the appropriation as None and the fiscal note as Available.
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- Issuer
- Congressional materials
- Document type
- Report
- Date
- 2024-01-25
- Case
- 2024 01 25 A31728 D266582 Bill Report 6243 Sba Bfgt 24
Cite this document
“Senate Bill Report SB 6243 — Business and occupation tax exemption to encourage clean technology manufacturing.”
Original at app.leg.wa.gov, dated 2024-01-25. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2024-01-25-2024-01-25-a31728-d266582-bill-report-6243-sba-bfgt-24/
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SENATE BILL REPORT
SB 6243
As of January 25, 2024
Title: An act relating to providing a state business and occupation tax exemption to encourage
clean technology manufacturing in Washington.
Brief Description: Providing a state business and occupation tax exemption to encourage clean
technology manufacturing in Washington.
Sponsors: Senators Mullet, Billig, Lovick, Nguyen and Shewmake.
Brief History:
Committee Activity: Business, Financial Services, Gaming & Trade: 1/25/24.
Brief Summary of Bill
• Establishes a business and occupation tax exemption for manufacturers
engaged in clean technology manufacturing beginning January 1, 2025.
SENATE COMMITTEE ON BUSINESS, FINANCIAL SERVICES, GAMING & TRADE
Staff: Kellee Gunn (786-7429)
Background: Business and Occupation Tax. Washington State's business and occupation
(B&O) tax is a gross receipts tax; measured on the value of products, gross proceeds of sale,
or gross income of the business. The rate of the tax varies by the classification of the
business.
Designation as a Hydrogen Hub. In October 2023, the Pacific Northwest, consisting of the
state of Washington, Oregon, and Montana, was chosen by the Department of Energy as
one of seven Regional Clean Energy Hydrogen Hubs. This designation may provide up to
$1 billion in matching federal funding to accelerate commercial-scale deployment of low-
cost, clean hydrogen.
This analysis was prepared by non-partisan legislative staff for the use of legislative
members in their deliberations. This analysis is not part of the legislation nor does it
constitute a statement of legislative intent.
Senate Bill Report -1- SB 6243
Summary of Bill: Business and Occupation Tax Exemption. Beginning January 1, 2025,
manufacturers engaged in clean technology manufacturing are exempt from the B&O tax.
This exemption expires January 1, 2035. Beneficiaries of the exemption are not required to
report the amount of the tax preference claimed to the Department of Revenue, but must
submit an annual tax performance report.
Clean Technology Manufacturing. Clean technology manufacturing is defined to mean
manufacturing tangible personal property exclusively or primarily used in the following:
• vehicles, vessels, and other modes of transportation that emit no exhaust gas from the
onboard source of power, other than water vapor;
• charging and fueling infrastructure for electric, hydrogen, or other types of vehicles
that emit no exhaust gas from the onboard source of power, other than water vapor;
• generation of renewable or green electrolytic hydrogen;
• production of energy from alternative energy resources;
• retrofitting of megawatt-class diesel vehicles, vessels, and other modes of
transportation to hybrid diesel-electric;
• production of clean fuels; and
• storage facilities.
Tax Performance Statement. A tax preference performance statement is included. The tax
preference is intended to induce certain designated behavior by taxpayers, improve industry
competitiveness, and create jobs.
It is the Legislature's specific public policy objective to provide state-level support to the
clean technology sector and supplement federal incentives, including potential federal
funding through the Pacific Northwest's designation as a hydrogen hub.
To measure effectiveness, the Joint Legislative Audit Review Committee must evaluate
eight years of available data, reporting its findings by December 31, 2033. The review must
include an evaluation of:
• the average construction wages for eligible projects;
• the number of jobs created in the clean technology sector;
• the use of apprenticeship programs, and women, minority, or veteran-owned
businesses by eligible projects;
• the degree to which the preference encourages manufacturing and component
production for technologies that reduce greenhouse gas emissions;
• whether facilities benefiting from the tax preference would have been developed
without the tax preference; and
• any other relevant metric.
Appropriation: None.
Fiscal Note: Available.
Senate Bill Report -2- SB 6243
Creates Committee/Commission/Task Force that includes Legislative members: No.
Effective Date: Ninety days after adjournment of session in which bill is passed.
Senate Bill Report -3- SB 6243
File and source
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- 8,734 bytes
- SHA-256
- da9166d6d392e899de7b4d30218ca7004897330d644f7fa86cd436aa02bd6967
- Original
- app.leg.wa.gov