State energy performance standard early adoption incentive program

From the 2024 DOR Tax Exemption Study

82.16.185 - State energy performance standard early adoption incentive program Description A qualifying light and power or gas distribution business (qualifying utility) is allowed a PU tax credit for both the following: - Incentives paid to eligible owners of covered commercial buildings and multifamily residential buildings for early adoption of new energy efficiency standards. - A portion of the qualifying utility’s administrative costs. The credit used is not to exceed the amount of PU tax due and is not refundable. The credit must be applied in the calendar year in which it is earned or within the following two calendar years. Building owners must apply with the Department of Commerce. Once approved, building owners can receive incentive payments from participating qualifying utilities. Purpose Increase energy efficiency and the use of renewable fuels that reduce the amount of greenhouse gas emissions in Washington. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $5.470 $8.620 $13.580 $21.440 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 202