ITA

Intended audience: Custom Farmers and Farm Managers.

Farmers who perform custom farming or farm management services are exempt from sales and use tax on purchases of retail goods and services. The exemption is provided in the form of a refund up to $10,000 on purchases made on or after July 1, 2024, through Dec. 31, 2029.

Intended audience: Covered entities, opt-in entities and entities that receive no-cost allowances.

Engrossed House Bill 2199 (EHB 2199) creates a business and occupation (B&O) tax and public utility tax (PUT) exemption for carbon credits and allowances received under the cap and invest program for greenhouse gas emissions, also known as the Washington Climate Commitment Act (CCA).

Who qualifies for the exemption?

Covered entities, opt-in entities, and entities that receive no-cost allowances under the CCA.

Intended audience: Owners of underutilized commercial properties.

Beginning June 6, 2024, cities can create a sales and use tax deferral program for converting underutilized commercial property into multifamily housing.

Intended audience: Affordable housing developers.

Effective June 6, 2024, Engrossed Substitute House Bill (ESSB) 2003 allows an exemption from the leasehold excise tax (LET) on leases of public lands used for affordable housing. The exemption applies when a lessee commits to both of the following:

Intended audience: Businesses converting to an employee ownership structure.

Beginning July 1, 2024, qualified businesses converting to an employee ownership structure may take a credit against their business and occupation (B&O) tax for part of the costs related to the conversion.

What is an employee ownership structure?

Employee ownership structure means a business structured as any of the following:

Intended audience: Operators of renewable energy generation and storage facilities.

Starting Jan. 1, 2025, there is a new personal property tax exemption for the state portion of property tax on all qualified personal property owned by a qualifying renewable energy facility.

Renewable energy facilities that are granted the personal property tax exemption must also pay new excise taxes based on the generation or storage capacity of the facilities.