Who qualifies for these exemptions?
- owners or operators of anaerobic digesters
- owners or operators of a landfill that converts biogas into a marketable coproducts
- people or businesses that process biogas from anaerobic digesters or landfills into marketable products
How to qualify for an exemption:
Beginning July 1, 2018, the law reinstates and expands tax incentives for anaerobic digesters and certain landfills (Revised Code of Washington (RCW) 82.08.900). You can take a sales and use tax exemption for tangible property you buy that becomes a component of an anaerobic digester. You can also take a sales and use tax exemption on the following anaerobic digester construction, installation, repairs, and improvements:
- Anaerobic digesters that process any type of organic material, not just livestock manure
- Equipment that processes anaerobic digester biogas and digestate into marketable products
- Equipment that processes biogas from a landfill into marketable products
- Charges for services to install, construct, repair, clean, alter, or improve the biogas processing equipment
How to report:
If you are a buyer you must:
- Provide a completed of Buyers’ Retail Sales Tax Exemption Certificate or a Farmers’ Certificate for Wholesale Purchases and Sales Tax Exemptions.
- Complete the buyer’s tax preference addendum in My DOR when filing your excise tax returns.
- You are not required to submit an Annual Tax Performance report.
If you are a seller you must:
- Keep a copy of the exemption certificate obtained from the buyer (see above).
- When you file your excise tax return, report the sales tax exemptions for anaerobic digesters and landfill biogas processing equipment.
The exemptions expire January 1, 2029.
For questions about the exemption program, call Taxpayer Account Administration at 360-705-6218.