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 unintended financial benefits for manufacturers who exceed compliance obligations by taxing profits from surplus ZEV credits. The tax structure includes a two percent tax on sales of ZEV credits and a ten percent tax on banked credits, along with reporting requirements for manufacturers. Exemptions are provided for manufacturers with fewer than 25,000 credits banked or sold in a model year. The bill also amends existing law to clarify definitions related to the ZEV program and ensures the confidentiality of financial information regarding ZEV credit transactions.

Furthermore, the bill establishes new provisions to protect sensitive financial and commercial information related to ZEV credits, specifically unaggregated data on sales prices in transactions between manufacturers. These confidentiality measures apply to ZEV credits that are banked, sold, or pooled after the act's effective date. The legislation includes a clause ensuring that if any part of the act is deemed invalid, the remaining provisions will still be enforceable. It is considered necessary for the immediate preservation of public peace, health, or safety, and will take effect immediately upon passage.

Statutes affected:
Original Bill: 42.56.270