Buyers of solar energy systems and installation.
Purchases of machinery and equipment used directly in a solar energy system if both of the following apply:
- The system is capable of generating at least 1 kW, but no more than 100 kW, AC of electricity.
- The machinery and equipment are purchased between July 1, 2019 and Dec. 31, 2029.
Purchases of installation services for qualifying solar systems may also be eligible for the sales tax exemption. Installation must begin on or after July 1, 2019, and be completed by Dec. 31, 2029. The installer must meet all of the following criteria at the time of sale:
- Be registered as a contractor with the Department of Labor & Industries.
- Possess a current state unified business identifier (UBI) number.
- Possess proof of industrial insurance coverage for its employees.
- Possess an Employment Security Department number.
- Possess a state excise tax registration number.
- Have had no final and binding orders finding violations of federal or state wage and hour laws or regulations in the past 24 months.
Provide a completed Buyers’ Retail Sales Tax Exemption Certificate to sellers on purchases of equipment, and to installers for labor services.
Note: If the seller charged you tax you may apply for a refund.
Sellers and installers must:
Keep the completed exemption certificate in their records for five years.
Note: A business who is also a buyer must file an Annual Tax Performance Report by May 31 of the calendar year following the purchase date. The business must file a separate tax performance report for each facility owned or operated in the state of Washington using machinery, equipment, services or labor for which the exemption is claimed.
Expires Jan. 1, 2030.
For questions about the exemption, call Taxpayer Account Administration at 360-705-6218.