Weatherization assistance program

From the 2024 DOR Tax Exemption Study

82.08.998; 82.12.998 - Weatherization assistance program Description Sales and use taxes do not apply to tangible personal property used in the weatherization of a residence under the low-income residential weatherization program, chapter 70.164 RCW. The exemption only applies to tangible personal property that becomes a component of the residence. Examples of qualifying weatherization materials include, but are not limited to, insulation and sealants, heating and cooling equipment, supplies used to seal and repair ducts. Charges for labor and services used to install these materials are subject to sales tax and use tax. Purpose To lower the cost of weatherization improvements so more low-income households receive assistance under the Department of Commerce’s weatherization program. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.631 $0.636 $0.636 $0.636 Local Taxes $0.284 $0.286 $0.286 $0.286 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.583 $0.636 $0.636 Local Taxes $0.000 $0.262 $0.286 $0.286 Assumptions - This r