Have you thought about making a purchase to improve the energy efficiency of your home your home? If you decide to make a purchase it may qualify for a state or federal tax exemptions. Also, several Washington utilities offer incentives on renewable energy systems, or the power they produce. This article discusses some of those exemptions, who they apply to, the equipment they apply to and what is necessary to receive the refunds. Additionally, two incredibly useful tools are shared.
Washington State has created a Renewable Energy Sales and Use Tax Exemption. According to the Washington State Department of Revenue there is a “75% exemption from tax for the sales of equipment used to generate electricity using fuel cells, wind, sun, biomass energy, tidal or wave energy, geothermal, anaerobic digestion or landfill gas. The tax exemption applies to labor and services related to the installation of the equipment, as well as to the sale of equipment and machinery. Eligible systems are those with a generating capacity of at least 1 kilowatt (kW). Purchasers of the systems listed above may claim an exemption in the form of a remittance.”
Exemptions & Expiration Dates
- The expiration date for an exemption on qualified renewable energy systems one kilowatt and greater is January 1, 2020. Buyers applying for this refund are required to complete and submit an annual tax incentive survey by April 30th, following the year in which the refund was claimed. Qualified Powers Sources include fuel cells, wind, biomass energy, tidal or wave energy, geothermal resources, anaerobic digestion, technology that converts otherwise lost energy from exhaust, and landfill gas.
- The expiration date on exemptions for solar systems that are ten kilowatts or less is June 30, 2018. To document the exemption at the time of sale, the buyer must provide the seller (and installer, if different from the seller), a completed “Buyer’s Retail Sales Tax Exemption Certificate” with box 6a checked. Click here to see this.
- The expiration date for exemptions on systems that are over ten kilowatts is January 1, 2020. Buyers applying for a refund are required to complete and submit an annual tax incentive survey by April 30th, following the year in which the refund was claimed.
What kind of equipment uses the technologies like fuel cells that apply to the above exemptions? A residential solar system is one example. Purchasers of these systems can provide the seller with an exemption certificate to avoid paying the sales and use tax. This can apply to in a commercial or residential environment and to Consumers or the General Public.
Washington State Department of Revenue has put out a special notice in regards to sales/use tax exemptions on purchases of renewable energy systems, thermal heat systems, and about an Annual Tax Incentive Survey required for refund applicants. The “Application for Sales Tax Refund on Purchases & Installation” of Qualified Renewable Energy Equipment can be found here.
If you are looking for a solar water heater or solar attic fan you mind find rebates or incentives along with federal and state tax exemption there are two great resources for consumers to help educate themselves about tax exemptions, special offers and rebates as they relate to energy efficiency.
- U.S. Department Department of Energy has funded a project called the “Interstate Renewable Energy Council”. This council has created a Database of State Incentives for Renewables & Efficiency. Click here to view that site. It has summaries of explanation for for tax exemptions as well as utility rebates and incentives for each utility provider in Washington. It is a great comprehensive resource and easy to use and understand.
- The Energy Star label is well known. Energy Star is a U.S. Environmental Protection Agency (E.P.A.) voluntary program that helps businesses and individuals save money and protect our climate through superior energy efficiency. Their website has a “Special Offer/Rebate Finder” to help consumers find special offers or rebates where they exist. According to the Energy Star website, “… Energy Star partners occasionally sponsor special offers, such as sales tax exemptions or credits, or rebates on qualified products.”
Smart Energy Today, Inc.™ is a certified installer of solar systems and insulation including a radiant barrier. Smart Energy Today, Inc.™ is located in Olympia and serves all of Washington, Oregon, Idaho, California and Pennsylvania. Specializing in the installation of insulation and solar equipment, Smart Energy Today, Inc.™ offers products that are able to exist for a long time without significant deterioration saving you money and making your home or business warmer in the winter and cooler in the summer. Smart Energy Today, Inc.™ never wants a complaint and always strives for positive reviews.
Smart Energy Today, Inc.™ is located in Olympia and serves all of Washington, Oregon, Idaho, California and Pennsylvania. Specializing in the installation of insulation and solar equipment, Smart Energy Today, Inc.™ offers products that are able to exist for a long time without significant deterioration saving you money and making your home or business warmer in the winter and cooler in the summer. Smart Energy Today, Inc.™ never wants a complaint and always strives for positive customer reviews.