The proposed bill introduces a tax on specific business activities related to surplus zero-emission vehicle (ZEV) credits under Washington's zero-emission vehicle program. This legislation aims to mitigate the financial advantages for manufacturers who exceed compliance obligations by taxing profits from surplus ZEV credits. The tax structure includes a two percent tax on the sale of ZEV credits and a ten percent tax on banked credits, with a significant increase to fifty percent for pooled credits starting in model year 2025, contingent on certain vehicle sales conditions. Additionally, the bill outlines reporting requirements, exemptions for manufacturers with fewer than 25,000 credits, and the allocation of tax proceeds, with the Department of Ecology tasked with data collection and tax liability calculations.

Furthermore, the bill amends existing law to protect certain financial information related to ZEV credit transactions from public disclosure, specifically unaggregated data on sales prices between manufacturers. This new category of protected information is intended to safeguard sensitive data and prevent potential financial loss for the providers. The provisions apply to ZEV credits that are banked, sold, or pooled after the act's effective date, and it includes a clause ensuring the enforceability of remaining provisions if any part of the act is deemed invalid. The act is considered essential for the immediate preservation of public peace, health, or safety, and will take effect immediately upon passage.

Statutes affected:
Original Bill: 42.56.270