Hog fuel used to produce energy

From the 2024 DOR Tax Exemption Study

82.08.956; 82.12.956 - Hog fuel used to produce energy Description The law provides sales and use taxes exemptions on purchases of hog fuel used to produce electricity, steam, heat, or biofuel. Buyers must provide the seller with an exemption certificate as well as complete an annual tax performance report for each facility owned or operated in Washington. The exemption and annual reporting requirement expire June 30, 2034. Purpose To promote diversified renewable energy use. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $1.993 $1.973 $1.943 $1.923 Local Taxes $0.580 $0.570 $0.560 $0.560 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $1.653 $1.943 $1.923 Local Taxes $0.000 $0.520 $0.560 $0.560 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Hog fuel exemption future growth declines 1.2% annually, based on the annual tax savings reported the past seven years. - Local revenue estimates use the rural average local sales and use tax rate of 1.88%. Data Sources