Clean technology manufacturing tax deferral

From the 2024 DOR Tax Exemption Study

82.89.030 - Clean technology manufacturing tax deferral Description A sales and use taxes deferral is provided for investment projects in clean technology manufacturing, clean alternative fuels production, and renewable energy storage. Deferred taxes begin to be repaid in the second year after the project is operationally completed and continue for the next nine years. The state sales tax owed may be reduced: - By 50% if the Department of Labor and Industries (LNI) certifies that the project includes procurement from and contracts with women, minority, or veteran-owned businesses. - By 75% if the project meets the 50% reduction criteria and compensates workers at prevailing wages determined by L&I. - By 100% if LNI certifies that the project is developed under a community workforce agreement or project labor agreement. Purpose To build manufacturing capacity for carbon-free electricity and to financially incentivize the use of high labor standards. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $4.401 $4.613 $4.736 $4.851 Local Taxes $1.979 $2.075 $2.130 $2.181 Repeal of Repealing this deferral would increase revenues. exemption Potential ($ in millio