Washington State Solar Energy Sales Tax Exemption Extended Through 2018

RedCupSolarSales Tax Exemption Extended for Solar Energy Systems in Washington State.

Washington Governor Jay Inslee signed SB 5882 into law June 30 which extends 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 photovoltaic systems over 10 kW to continue to qualify for a 75% remittance from the Department of Revenue.
Solar Washington’s Policy Committee Chair, Howard Lamb, and Coordinator, Patrick Nugent, worked toward this signing through successful outreach efforts over the past several months. Also supporting the bill were Environment Washington and the NW Energy Coalition.
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 is about sixty times larger than an average residential system. Customers are not required to pay sales tax upfront so long as they fill out an exemption certificate.

For more information go to Solar Washington’s website.

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