Cogeneration facilities and renewable resources

From the 2024 DOR Tax Exemption Study

82.16.055 - Cogeneration facilities and renewable resources Description Businesses producing energy may deduct amounts from PU tax equal to the cost of production if the energy is for consumption within Washington and produced by either: - Cogeneration, which means the sequential generation of electrical or mechanical power and useful heat from the same primary energy source or fuel. - Renewable energy resources. This preference is only applicable to facilities where construction or installation was begun after June 12, 1980, and before January 1, 1990. The department must determine which projects and amounts are eligible for the PU tax deductions after consultation with the utilities and transportation commission or governing bodies of locally regulated utilities. Purpose To encourage energy recycling and the use of renewable energy. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes CTI CTI CTI CTI Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this deduction would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 CTI CTI CTI Local Taxes $0.000 $0.000 $0