Senate Bill 6243 — State of Washington, 68th Legislature, 2024 Regular Session

Summary

Senate Bill 6243 of the 68th Legislature, 2024 Regular Session, State of Washington, by Senators Mullet, Billig, Lovick, Nguyen, and Shewmake, referred to the Committee on Business, Financial Services, Gaming & Trade. The act provides a state business and occupation tax exemption to encourage clean technology manufacturing. Section 1 adds a new section to chapter 82.04 RCW stating that beginning January 1, 2025, the chapter does not apply to any manufacturer primarily engaged in clean technology manufacturing, and that the section expires January 1, 2035. Section 2 is a tax preference performance statement with metrics for review by the joint legislative audit and review committee.

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Full text

     S-3969.3

                               SENATE BILL 6243


     State of Washington       68th Legislature         2024 Regular Session

     By Senators Mullet, Billig, Lovick, Nguyen, and Shewmake

     Read first time 01/16/24.       Referred   to   Committee   on   Business,
     Financial Services, Gaming & Trade.




1        AN ACT Relating to providing a state business and occupation tax
2    exemption to encourage clean technology manufacturing in Washington;
3    adding a new section to chapter 82.04 RCW; creating a new section;
4    and providing an expiration date.


 5   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:


 6       NEW SECTION.   Sec. 1.   A new section is added to chapter 82.04
 7   RCW to read as follows:
 8       (1) Beginning January 1, 2025, this chapter does not apply to any
 9   manufacturer primarily engaged in clean technology manufacturing.
10       (2) A manufacturer claiming the exemption under this section must
11   submit an annual tax performance report under RCW 82.32.534.
12       (3) RCW 82.32.808(6) does not apply to the tax preference created
13   in this section.
14       (4) For purposes of this section, the following definitions apply
15   unless the context requires otherwise.
16       (a) "Alternative energy resource," "storage facility," "renewable
17   hydrogen," and "green electrolytic hydrogen" have the same meanings
18   as in RCW 80.50.020.
19       (b) "Clean fuels" means fuels meeting the specifications provided
20   in RCW 70A.25.120.


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 1       (c) "Clean technology manufacturing" means manufacturing tangible
 2   personal property exclusively or primarily used in the following:
 3       (i) Vehicles, vessels, and other modes of transportation that
 4   emit no exhaust gas from the onboard source of power, other than
 5   water vapor;
 6       (ii) Charging and fueling infrastructure for electric, hydrogen,
 7   or other types of vehicles that emit no exhaust gas from the onboard
 8   source of power, other than water vapor;
 9       (iii) Generation of renewable or green electrolytic hydrogen;
10       (iv) Production of energy from alternative energy resources;
11       (v) Retrofitting of megawatt-class diesel vehicles, vessels, and
12   other modes of transportation to hybrid diesel-electric;
13       (vi) Production of clean fuels; and
14       (vii) Storage facilities.
15      (5) This section expires January 1, 2035.


16       NEW SECTION.   Sec. 2.   (1) This section is the tax preference
17   performance statement for the tax preference contained in section 1,
18   chapter . . ., Laws of 2024 (section 1 of this act). This performance
19   statement is only intended to be used for subsequent evaluation of
20   the tax preference. It is not intended to create a private right of
21   action by any party or to be used to determine eligibility for
22   preferential tax treatment.
23       (2) The legislature categorizes this tax preference as one
24   intended to induce certain designated behavior by taxpayers, improve
25   industry competitiveness, and create jobs, as indicated in RCW
26   82.32.808(2) (a), (b), and (c).
27       (3) It is the legislature's specific public policy objective to
28   provide broad state-level support to the clean technology sector and
29   supplement federal incentives, including potential federal funding
30   through the Pacific Northwest's designation as a hydrogen hub.
31       (4) To measure the effectiveness of the tax preference in this
32   act, the joint legislative audit and review committee must evaluate
33   the first eight years of available data, reporting its findings to
34   the legislature by December 31, 2033. The review must include
35   evaluation of:
36       (a) The average construction wages for eligible projects;
37       (b) The number of jobs created in the clean technology sector;
38       (c) The use of apprenticeship programs, and women, minority, or
39   veteran-owned businesses by eligible projects;
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1       (d) The degree to which the preference encouraged manufacturing
2   and component production for technologies that reduce greenhouse gas
3   emissions;
4       (e) Whether facilities benefiting from the tax preference would
5   have been developed without the tax preference; and
6       (f) Any other relevant metric.
7       (5) In order to obtain the data necessary to perform the review
8   in subsection (4) of this section, the joint legislative audit and
9   review committee may refer to any data collected by the state.

                                --- END ---




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