Beginning with taxes levied for collection in 2025, a newly enacted Washington property tax statute provides an exemption from the state-imposed portion of personal property tax for qualified personal property used for the generation or storage of renewable energy. The exemption is available for either a 10-year or 15-year term following the date on which the facility first becomes operational.
The term “qualified personal property” means personal property that is used exclusively for the generation or storage of renewable energy in a facility, the construction of which began on or after July 1, 2023. The term “renewable energy” means energy produced by a solar or wind facility with nameplate capacity sufficient to generate at least 10 megawatts of nameplate capacity of alternating current power.
Renewable energy facilities that are granted the personal property tax exemption must pay a new “production excise tax” based on the generation or storage capacity of the facility. The amount of the production excise tax depends in part on whether the facility qualifies for a 10-year exemption or 15-year exemption from State property tax. The per month per MW nameplate capacity excise tax is:
