Solar canopy deferral

From the 2024 DOR Tax Exemption Study

82.90.030 - Solar canopy deferral Description A sales and use taxes deferral is provided for installing solar canopies. A solar canopy is defined as an elevated structure(s) containing a solar energy system with capacity of one megawatt and an area of at least 50,000 square feet. Deferred taxes begin to be repaid on December 31st in the second year after the project is operationally completed and continue for the next seven calendar years. The sales and use taxes 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 incentivize the construction of solar canopies in Washington to reduce greenhouse gas emissions and boost overall electricity supplies. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.000 $7.238 $8.324 $9.572 Local Taxes $0.000 $3.255 $3.743 $4.305