Electric power exported or resold

From the 2024 DOR Tax Exemption Study

82.16.050(11) - Electric power exported or resold Description Businesses may deduct income subject to the PU tax when electrical energy is produced, sold, or transferred for resale or consumed outside of Washington. Purpose To avoid taxing interstate commerce and to avoid pyramiding of the public utility tax on in-state sales of electricity for resale. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $54.060 $54.790 $55.730 $56.950 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this deduction would increase revenue from the resale of electrical exemption energy inside Washington. Revenue from reselling or consumption of electrical energy outside of Washington is exempt from taxation under the commerce clause and revenue and would not be realized. Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $47.200 $52.370 $53.520 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the public utility taxable activity growth rate reflected in the Economic and Revenue Forecast