Renewable energy system cost recovery

From the 2024 DOR Tax Exemption Study

82.16.130 - Renewable energy system cost recovery Description A light and power business may take a credit against public utility tax for amounts paid to customers as investment cost recovery incentives for qualifying renewable energy systems. Credit claimed for amounts paid to customers may not exceed the greater of either of the following in a fiscal year: - $250,000. - 1.5% of the business’s taxable Washington power sales generated in calendar year 2014. The right to earn tax credits expires June 30, 2029. Credits may not be claimed after June 30, 2030. Approved projects receive annual incentive payments for 8 years based on specific incentive rates or until cumulative payments reach 50% of total system price, whichever occurs first. Depending on the project, the annual incentive payment is limited to up to $35,000 per participant. Total incentive payments statewide may not exceed $110 million. Purpose To encourage investment in renewable energy resources. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $11.570 $11.570 $11.570 $11.570 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this credit would increase revenues. exemption Potential