This bill aims to position Washington state as a leader in clean energy technology by providing a preferential business and occupation tax rate for manufacturers of energy storage systems and their component parts. The legislation recognizes the state's potential to attract these manufacturers, which is essential for achieving decarbonization goals and creating sustainable, family-wage jobs in the clean energy sector. The bill establishes a new tax rate of 0.275 percent for businesses engaged in the retail or wholesale sale, manufacturing, or processing of energy storage systems and components, effective from July 1, 2025, until June 30, 2040.

Additionally, the bill outlines specific requirements for businesses reporting under this new tax rate, including the necessity to electronically file all returns and forms with the department. It also mandates the submission of an annual tax performance report. Definitions for "energy storage system" and "component parts used in the manufacture of energy storage systems" are provided to clarify the scope of the legislation. Notably, the bill specifies that RCW 82.32.808 does not apply to this act, indicating a departure from certain existing regulations.

Statutes affected:
Original Bill: 82.89.010