Washington State Sales Tax Exemption Extended!

This past Sunday, Governor Inslee signed SB 5882 into law, extending the Washington State sales tax exemption on small solar energy systems for another five years.

The last-minute bill also reinstates the previously expired sales tax exemption for solar hot water systems, and allows PV systems over 10 kW to continue to qualify for a 75 percent remittance from the Department of Revenue.

Many thanks are in order for Solar Washington’s Policy Committee Chair, Howard Lamb, and Coordinator, Patrick Nugent, for their successful outreach efforts over the past several months. We are also grateful for all of the help received from Environment Washington and from Lynne Dial of the NW Energy Coalition. And of course, to all of you, our members and sponsors on the front lines who contacted your representatives and urged them to extend this important incentive. Thank you all for your hard work and dedication to the success of solar energy in Washington State.

Here are some of the details of the new bill:

  • Section 1502: Extends the 75% sales tax exemption for PV Systems over 10 kW until January 1, 2020. Customers must pay all sales tax up front, but are eligible to receive a 75% exemption through a remittance from the DOR the following quarter. The law states that a person can only apply for a remittance once per quarter and must provide proper supporting documentation (e.g. an invoice along with description of the equipment) in order to qualify.
  • Section 1602: Extends the sales tax exemption for PV Systems 10 kW and under until June 30, 2018. It also exempts solar hot water systems capable of producing no more than 3 million BTUs per day, which equates to a system size of approximately 65 collectors. Customers are not required to pay sales tax upfront so long as they fill out an exemption certificate.

Solar Washington is excited to continue on its mission of advancing solar energy in Washington State when the legislative session reopens in January 2014. We hope you will continue to support us along the way.

Sincerely,

Dave Kozin
President
Solar Washington