HB 1756 — Supporting clean energy through tax changes that increase revenue to local governments, schools, and impacted communities.

H-1571.1H-0924.3 SUBSTITUTE HOUSE BILL 1756 State of Washington 68th Legislature 2023 Regular Session By House Finance (originally sponsored by Representatives Ramel, Klicker, Duerr, Rude, Schmidt, Reed, Kloba, Doglio, Senn, Ryu, and Macri)Macri READRead FIRSTfirst TIMEtime 03/13/23.02/03/23.

Referred to Committee on Finance.

(1) Provided the taxpayer fulfills the requirements of this section, all qualified personal property owned by a taxpayer and used for the generation of renewable energy is exempt from property taxes levied for any state purpose.

(b) If a taxpayer is assessed under chapter 84.12 RCW, a claim for an exemption under this section from taxes payable the following year must be filed by March 31st with the department together with p.

1 SHBHB 1756 year must be filed by March 31st with the department together with the annual report required under RCW 84.12.230 and a statement attesting that the taxpayer meets the requirements of subsection (3) of this section.

(6)(a)(6) IfFailure a taxpayer fails to meetcomply with the annualrequirements attestation requirement in subsection (2)(c) of this section orresults fails to pay the production excise tax required in section 2 of this act, the departmentpersonal shallproperty sendtaxes abecoming noticeimmediately todue theand taxpayerpayable. to comply or forfeit the exemption.

The taxpayer must come into compliance within 60 days from the date of the notice.

(b) Failure to comply with the requirements of this section results in the personal property taxes previously exempted becoming immediately due and payable with interest.

The rate of interest must be the same as provided for delinquent taxes in RCW 84.56.020(5).

No additional penalties may be assessed;

however, credit for production excise taxes paid pursuant to section 2 of this act may not be given in calculating the total amount due under this subsection (6).

In addition, the qualified personal property no longer qualifies for a personal property tax exemption under this section.

p.(c) "Renewable energy" means energy produced by a solar or wind facility with nameplate capacity sufficient to generate at least one megawatt of nameplate capacity of alternating current power.

2 SHB 1756 (c) "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.

(i) $80 per month per megawatt of nameplate capacity of alternating current power for a qualified renewable energy generating systemp. that uses solar energy to generate electricity and that was granted an exemption under section 1 of this act for 10 years;

2 HB 1756 system that uses solar energy to generate electricity and that was granted an exemption under section 1 of this act for 10 years;

(i) The rate of the tax is $19$100 per month per megawatt hour of renewable energy storage capacitycapacity. for exemptions granted under section 1 of this act for 10 years.

(ii)(2) TheFor ratetaxpayers ofnot theassessed taxunder ischapter $1484.12 perRCW, monththe percounty megawattassessor hourmust ofprovide renewablea energylist storageof capacitytaxpayers forgranted exemptionsan grantedexemption under section 1 of this act for 15the years.following year, along with any other information required, to the department by August 1st each year.

(2)(3) ToA ensuretaxpayer theapplying ratefor structuresan reflectexemption changesunder insection technology,1 capacity,of marketsthis incentives,act andfor inflation, the departmentfollowing mayyear recommendmust toregister thewith legislature changes to the productiondepartment exciseprior tax rates in subsection (1) of this section to ensuresubmitting aan balanceapplication betweenunder the value of the exemptions granted pursuant to section 1 of this actact. and the production excise tax rate imposed pursuant to this section.

p.

3 SHB 1756 The goal is to optimize revenues for local communities while maintaining a rate and tax incentive program that is attractive to project developers.

(3) For taxpayers not assessed under chapter 84.12 RCW, the county assessor must provide a list of taxpayers granted an exemption under section 1 of this act for the following year, along with any other information required, to the department by August 1st each year.

(4) A taxpayer applying for an exemption under section 1 of this act for the following year must register with the department prior to submitting an application under section 1 of this act.

(5)(4) The taxpayer claiming an exemption under section 1 of this act and paying the production excise tax under this section must file an annual attestation in the manner and form prescribed by the department.

(6)(5) The definitions in this subsection apply throughout this section unless the context clearly indicates otherwise.

(b)p. "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.

(c)3 HB 1756 (b) "Renewable energy" means energy storageproduced capacity"by meansa thesolar batteryor storagewind facility with nameplate capacity persufficient to generate at least one megawatt hour.of nameplate capacity of alternating current power.

(d)(c) "Renewable energy storage system" means battery storage or battery energy storage system that can store renewable energy when production exceeds demand and release energy when energy demand increases.

Moneys in the account may be spent only after p.appropriation.

4 SHB 1756 appropriation.

(b) Qualified federally recognized Indian tribes must receive an appropriation totaling 15 percent of the production excise tax paid by a renewable energy system impacting the tribes' resources or rights.rights, in proportion to the number of enrolled members of each qualified federally recognized Indian tribe.

(b) "Qualified federally recognized Indian tribe" means a federally recognized Indian tribe withat rightsleast orpartially landslocated reservedwithin orthe protectedgeographical byboundaries federalof treaty,Washington statute,state orwith executivetribal orderresources thator aretribal rights potentially impacted by a renewable energy system thatp. receives a tax exemption under section 1 of this act and pays the production excise tax under section 2 of this act.

4 HB 1756 that receives a tax exemption under section 1 of this act and pays the production excise tax under section 2 of this act.

AllChapter of the provisions contained in chapter 82.32 RCW notapplies inconsistent with the provisions of this chapter have full force and application with respect to taxes imposed under the provisions of this chapter.act.

p.NEW SECTION.

5 SHB 1756 NEW SECTION.

65 SHBHB 1756