Manufacturing/sales tax

AN ACT Relating to providing a sales and use tax exemption for 1
manufacturing facilities and green manufacturing facilities; adding a 2
new section to chapter 82.08 RCW; adding a new section to chapter 3
82.12 RCW; and providing expiration dates. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
NEW SECTION. Sec. 1. A new section is added to chapter 82.08 6
RCW to read as follows: 7
(1)(a) An exemption from the tax imposed by RCW 82.08.020 is 8
provided for the sales of construction materials and equipment, and 9
to charges made for labor and services rendered, to manufacturing 10
facilities and green manufacturing facilities. 11
(b) No new exemption certificates may be issued on or after July 12
1, 2035. 13
(c) The exemptions provided in this section expire January 1, 14
2036. 15
(2)(a) In order to obtain an exemption certificate under this 16
section, a manufacturing facility or green manufacturing facility 17
must submit an application to the department for an exemption 18
certificate. The application must include the information necessary, 19
as required by the department, to determine that the facility 20
qualifies for the exemption under this section. 21
H-0760.1
HOUSE BILL 1924
State of Washington 69th Legislature 2025 Regular Session
By Representatives Fey, Stuebe, Zahn, and Shavers
Read first time 02/10/25. Referred to Committee on Finance.
p. 1 HB 1924
(b) A manufacturing facility or green manufacturing facility 1
claiming the exemption under this section must present the seller 2
with an exemption certificate in a form and manner prescribed by the 3
department. The seller must retain a copy of the certificate for the 4
seller's files. 5
(c) The exemption certificate is effective on the date the 6
application is received by the department, which is the date of 7
issuance. Only purchases on or after the date of issuance qualify for 8
the exemption under this section. No tax refunds are authorized for 9
purchases made before the effective date of the exemption 10
certificate. 11
(d) Exemption certificates expire two years after the date of 12
issuance, unless construction has been commenced. 13
(3) Manufacturing facilities and green manufacturing facilities 14
claiming an exemption under this section must complete an annual tax 15
performance report with the department as required under 16
RCW 82.32.534. 17
(4) The certificate holder may not at any time assign or transfer 18
a certificate without the prior written consent of the department. 19
The department must allow certificate transfers if the certificate 20
holder meets the following requirements: 21
(a) The certificate assignee or transferee is qualified to do 22
business in the state; 23
(b) The assignee or transferee acknowledges the transfer of the 24
certificate in writing; 25
(c) The assignee or transferee agrees to keep and perform all the 26
terms of the certificates; and 27
(d) An assignment or transfer of the certificate is to an entity 28
that: 29
(i) Controls, is controlled by, or under common control with, the 30
certificate holder; 31
(ii) Acquires all or substantially all of the stock or assets of 32
the certificate holder; or 33
(iii) Is the resulting entity of a merger or consolidation with 34
the certificate holder. 35
(5) The definitions in this subsection apply throughout this 36
section unless the context clearly requires otherwise.37
(a) "Green manufacturing facility" means a manufacturing facility 38
that has been certified by a state or nationally recognized 39
p. 2 HB 1924
organization that rates the sustainability of the manufacturing 1
process. 2
(b) "Manufacturing facility" means a facility that is used to 3
manufacture, as defined in RCW 82.04.120. 4
(6) This section expires January 1, 2037. 5
NEW SECTION. Sec. 2. A new section is added to chapter 82.12 6
RCW to read as follows: 7
(1) An exemption from the tax imposed by RCW 82.12.020 is 8
provided for the use by a manufacturing facility or green 9
manufacturing facility of construction equipment and materials and to 10
the use of labor and services rendered in respect to installing the 11
construction equipment and materials. 12
(2) The exemption provided in this section does not apply to any 13
person for whom the exemption under section 1 of this act does not 14
apply. 15
(3) A manufacturing facility or green manufacturing facility 16
claiming an exemption under this section must complete an annual tax 17
performance report as required in RCW 82.32.534. The report must 18
identify construction firm names and employment levels used for 19
constructing, renovating, refurbishing, or remodeling the 20
manufacturing facility or green manufacturing facility.21
(4) The definitions and requirements in section 1 of this 22
act apply to this section. 23
(5) This section expires January 1, 2037. 24
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p. 3 HB 1924