Tax Exemptions on EV Infrastructure, EV Batteries and Fuel Cells, and Zero-Emissions Buses

https://dor.wa.gov/sites/default/files/2022-02/sn_19_ElectricVehicleBuses.pdf

Beginning July 28, 2019, the state of Washington enacted changes and an extension to sales tax exemptions for electric vehicle infrastructure and the leasehold excise tax exemption. Some of the changes are:

· the sales tax exemption extended to July 1, 2025

· the use tax exemption effective Aug. 1, 2019 through July 1, 2025

· includes the sale of zero emissions buses

· includes the sale of fuel cells for electric vehicles

· adds hydrogen fueling stations that provide hydrogen for fuel cell electric vehicles and renewable hydrogen production facilities to the definition of electric vehicle infrastructure

The tax changes are for:

· the sale or use of batteries or fuel cells for electric vehicles, including batteries or fuel cells sold as a component of an electric bus at the time of the vehicle’s sale

· the sale of/charge for labor and services for installing, repairing, altering, or improving electric vehicle batteries or fuel cells

· the sale of/charge for labor and services for installing, constructing, repairing, or improving battery or fuel cell electric vehicle infrastructure, including hydrogen fueling stations

· the sale of tangible personal property that will become a component of a battery or fuel cell electric vehicle infrastructure

Sellers must receive a Buyers Retail Sales Tax Exemption Certification from the buyer of qualifying items. The Seller must also report the exempt sale by taking a Sales of Zero-emissions Buses, Batteries, Fuel Cells, and Infrastructure for Electric Vehicles deduction from retail sales tax. In addition, there is the exemption from leasehold excise tax which is allowed on leases to tenants of public lands for the purpose of installing, maintaining, and operating electric vehicle infrastructure

For more information on the bill visit http://lawfilesext.leg.wa.gov/biennium/2019-20/Pdf/Bills/Session Laws/House/2042-S2.SL.pdf