Urban area tax preferences

AN ACT Relating to targeted urban area tax preferences; amending 1
RCW 84.25.030 and 84.25.110; and creating new sections.2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:3
NEW SECTION. Sec. 1. It is the intent of the legislature to 4
ensure that clean energy transformation businesses have equal access 5
to the existing targeted urban area tax preferences under chapter 6
84.25 RCW. Washington state has a long-standing commitment to world-7
class clean energy production and to the creation of family-wage jobs 8
in the clean energy sector. Therefore, the legislature intends to 9
allow cities using the targeted urban area tax preferences to extend 10
additional time to clean energy transformation businesses in an 11
effort to grow Washington's economy and implement the legislature's 12
carbon-free energy objectives.13
Sec. 2. RCW 84.25.030 and 2022 c 172 s 1 are each amended to 14
read as follows: 15
The definitions in this section apply throughout this chapter 16
unless the context clearly requires otherwise. 17
(1) "City" means any city or town. 18
(2) "Family living wage job" means a job that offers health care 19
benefits with a wage that is sufficient for raising a family. A 20
H-0308.2
HOUSE BILL 1210
State of Washington 69th Legislature 2025 Regular Session
By Representatives Barnard and Springer
Prefiled 01/09/25. Read first time 01/13/25. Referred to Committee
on Finance.
p. 1 HB 1210
family living wage job must have an average wage of $23 an hour or 1
more, working 2,080 hours per year on the subject site, as adjusted 2
annually for inflation by the consumer price index. The family living 3
wage may be increased by the local authority based on regional 4
factors and wage conditions. 5
(3) "Governing authority" means the local legislative authority 6
of a city or county having jurisdiction over the property for which 7
an exemption may be applied for under this chapter.8
(4) "Growth management act" means chapter 36.70A RCW.9
(5) "Industrial/manufacturing facilities" means building 10
improvements that are 10,000 square feet or larger, representing a 11
minimum improvement valuation of $800,000 for uses categorized as 12
"division D: manufacturing" or "division E: transportation (major 13
groups 40-42, 45, or 47-48)" by the United States department of labor 14
in the occupation safety and health administration's standard 15
industrial classification manual, provided, a city may limit the tax 16
exemption to manufacturing uses. 17
(6) "Lands zoned for industrial and manufacturing uses" means 18
lands in a city zoned for an industrial or manufacturing use 19
consistent with the city's comprehensive plan where the lands are 20
designated for industry. 21
(7) "Owner" means the property owner of record.22
(8) "Targeted area" means an area of undeveloped lands zoned for 23
industrial and manufacturing uses in the city that is located within 24
or contiguous to an innovation partnership zone, foreign trade zone, 25
or EB-5 regional center, and designated for possible exemption under 26
the provisions of this chapter. 27
(9) "Undeveloped or underutilized" means ((that there are no 28
existing)) a portion of or the entirety of any real property, 29
including any building improvements on the portions of the property 30
targeted for new or expanded industrial or manufacturing uses.31
(10)(a) "Clean energy transformation business" means any business 32
that:33
(i) Constructs or operates under a license issued by the United 34
States nuclear regulatory commission;35
(ii) Produces or constructs qualified clean hydrogen;36
(iii) Produces energy storage technologies or companies; and37
(iv) Transmits electric energy at 500 kilovolts or greater.38
(b) "Clean energy transformation business" does not mean 39
government agencies or tribal nations.40
p. 2 HB 1210
(11) "Energy storage technologies" means property that receives, 1
stores, and delivers energy for conversion to electricity or, for 2
hydrogen, stores energy, and has a nameplate capacity of not less 3
than five kilowatts per hour, including thermal energy storage 4
property.5
(12) "Qualified clean hydrogen" means hydrogen produced through a 6
process that results in a life-cycle greenhouse gas emissions rate of 7
no greater than four kilograms of CO2e per kilogram of hydrogen.8
Sec. 3. RCW 84.25.110 and 2015 1st sp.s. c 9 s 11 are each 9
amended to read as follows: 10
(1) Upon completion of the new construction of a ((manufacturing/11
industrial [industrial/manufacturing] )) industrial/manufacturing 12
facility for which an application for an exemption under this chapter 13
has been approved and issued a certificate of occupancy, the owner 14
must file with the city the following: 15
(a) A description of the work that has been completed and a 16
statement that the new construction on the owner's property qualify 17
the property for a partial exemption under this chapter , including 18
verification that all requirements of RCW 84.25.080 and commitments 19
made by the applicant for prioritization in the application approval 20
process have been met; 21
(b) A copy of the executed community workforce agreement or 22
project labor agreement used for the construction of the project;23
(c) A statement of the postconstruction new prevailing or family 24
living wage jobs to be offered as a result of the new construction of 25
((manufacturing/industrial [industrial/manufacturing] )) industrial/26
manufacturing facilities and commitments to postconstruction labor 27
standards for employed workers; and 28
(((c))) (d) A statement that the work has been completed within 29
three years of the issuance of the conditional certificate of tax 30
exemption. 31
(2) Within ((thirty)) 30 days after receipt of the statements 32
required under subsection (1) of this section, the city must 33
determine whether the work completed and ((the jobs to be offered )) 34
labor standard requirements are consistent with the application and 35
the contract approved by the city and whether the application is 36
qualified for a tax exemption under this chapter. The city must 37
consult with the department of labor and industries to confirm that:38
p. 3 HB 1210
(a) All entities procured from or contracted with during the 1
construction of the facility have a history of complying with federal 2
and state wage and hour laws and regulations;3
(b) Workers were paid prevailing wages during the construction of 4
the project; and5
(c) State-registered apprentices were employed on the 6
construction project and met the apprentice rate committed to in the 7
application, community workforce agreement, or project labor 8
agreement, if applicable.9
(3) If the criteria of this chapter have been satisfied and the 10
owner's property is qualified for a tax exemption under this chapter, 11
the city must file the certificate of tax exemption with the county 12
assessor within ((ten)) 10 days of the expiration of the ((thirty)) 13
30-day period provided under subsection (2) of this section.14
(4) The city must notify the applicant that a certificate of tax 15
exemption is denied if the city determines that: 16
(a) The work was not completed within three years of the 17
application date; 18
(b) The work was not constructed consistent with the application 19
or other applicable requirements; 20
(c) The ((jobs to be offered )) labor standard requirements are 21
not consistent with the application and criteria of this chapter; or22
(d) The owner's property is otherwise not qualified for an 23
exemption under this chapter. 24
(5) If the city finds that the work was not completed within the 25
required time period due to circumstances beyond the control of the 26
owner and that the owner has been acting and could reasonably be 27
expected to act in good faith and with due diligence, the governing 28
authority or the city official authorized by the governing authority 29
may extend the deadline for completion of the work for a period not 30
to exceed ((twenty-four)) 24 consecutive months. If the project is 31
constructed by a clean energy transformation business, up to two 32
additional 24 consecutive month extensions may be granted.33
(6) The city's governing authority may enact an ordinance to 34
provide a process for an owner to appeal a decision by the city that 35
the owner is not entitled to a certificate of tax exemption to the 36
city. The owner may appeal a decision by the city to deny a 37
certificate of tax exemption in superior court under RCW 34.05.510 38
through 34.05.598, if the appeal is filed within ((thirty)) 30 days 39
of notification by the city to the owner of the exemption denial.40
p. 4 HB 1210
NEW SECTION. Sec. 4. RCW 82.32.805 and 82.32.808 do not apply 1
to this act.2
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p. 5 HB 1210