TPS

Sales/use tax deferral - Manufacturing and research and development in qualifying counties

Available to:

Manufacturers and research and developers located in counties with a population of less than 650,000 at the time of application. Applications will be accepted starting July 1, 2022. The application must be submitted before initiation of construction or purchase of equipment.

Note: This is a deferral, not an exemption. However, you do not have to repay deferred taxes unless you do not meet the conditions of the deferral program.

Qualifying activity:

Rural data centers - Sales/use tax exemption for purchases of server equipment and power infrastructure

Available to:

Available to the owner and tenants of an eligible data center that has a combined square footage of at least 100,000 square feet and is located in a rural county.

Qualifying activity:

Construct, renovate, or expand a data center under a building permit issued during one of the following periods:

  • April 1, 2010 to June 30, 2011.
  • April 1, 2012 to June 30, 2015.
  • July 1, 2015 to June 30, 2036.

Or, refurbish an existing facility.

Urban data centers - Sales/use tax exemption for purchases of server equipment and power infrastructure

Available to:

Available to the owner and tenants of an eligible data center that has a combined square footage of at least 100,000 square feet and is located in King, Pierce, or Snohomish County.

Qualifying activity:

To qualify, the data center must have a building permit to construct, renovate, or expand the data center issued after June 9, 2022, or refurbish an existing facility.

Refurbish means a substantial improvement to an eligible computer data center.

Sales/use tax exemption on:

Solar canopy retail sales and use tax deferral

Intended audience: Owners of qualifying commercial centers who plan to have solar canopies installed at these centers.

Effective July 1, 2022, persons who plan to have solar canopies constructed at qualifying commercial centers may apply for a retail sales and use tax deferral. The deferral is for state and local retail sales and use taxes on a qualified solar canopy, including labor and services rendered in the planning, installation, and construction of the project.

Sales and use tax deferral program for clean energy investment projects

Intended audience: Certain manufacturing operations, renewable energy storage facilities, and clean fuel producers.

Beginning July 1, 2022, a new sales and use tax deferral program is available for eligible investment projects in clean technology manufacturing, clean alternative fuels production, and renewable energy storage.

What qualifies?

An eligible investment project with costs of at least $2 million in either qualified buildings or qualified machinery and equipment, or both, for any of the following new, renovated, or expanded:

Community solar projects - public utility tax credit

Intended audience: Public utility light and power businesses.

Beginning July 1, 2022, a light and power business is allowed a credit against public utility tax (PUT) equal to incentive payments made under the Community Solar Expansion Program.

How much is the PUT credit?

Credit claimed for incentive payments made to a community solar project may not exceed the greater of either of the following in a fiscal year: