Tax exemption ending for alt-fuel, electric, and plug-in hybrid vehicles

Exemption expires June 1

OLYMPIA, WASH. – April 24, 2018 – In March, Washington reached the 7,500-vehicle threshold for the clean-alternative fuel, electric, and plug-in hybrid vehicle sales and use tax exemption. As a result, the exemption expires June 1.

Washington residents can take advantage of the sales and use tax exemption through May 31 by purchasing or leasing clean-alternative fuel, electric, and plug-in hybrid vehicles.

To qualify for the exemption, the vehicle must be purchased or leased for a base-model retail price of less than $42,500, meet the expectations outlined by the Department of Licensing, and be delivered to the buyer before the expiration date. Vehicles delivered after May 31 do not qualify.

Exemptions apply up to $32,000. Leases that are entered on or before May 31 qualify for the exemption on the remainder of lease payments due or until the total amount of lease payments reaches $32,000.

Interested buyers can find more information on which vehicles qualify for the clean-alternative fuel, electric, and plug-in hybrid exemption in the Sales and use tax exemption expires for clean alternative fuel, electric and plug-in hybrids special notice.

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The Department of Revenue is Washington state’s primary tax agency, nationally recognized for innovation and quality customer service. Revenue administers nearly 60 categories of taxes that help fund education, social services, health care, corrections, public safety, natural resource conservation and other important services Washington residents count on.