Washington SB 5000: Creating a hydrogen fuel cell electric vehicle pilot sales and use tax exemption program.

Bill Text

AN ACT Relating to creating a hydrogen fuel cell electric vehicle 1
pilot sales and use tax exemption program; adding a new section to 2
chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; 3
creating a new section; providing an effective date; and providing 4
expiration dates.5
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:6
NEW SECTION. Sec. 1. This section is the tax preference 7
performance statement for the tax preferences contained in sections 2 8
and 3, chapter . . ., Laws of 2021 (sections 2 and 3 of this act). 9
The performance statement is only intended to be used for subsequent 10
evaluation of the tax preference. It is not intended to create a 11
private right of action by any party or be used to determine 12
eligibility for preferential tax treatment.13
(1) The legislature categorizes the tax preferences as ones 14
intended to induce certain designated behavior by taxpayers, as 15
indicated in RCW 82.32.808(2)(a).16
(2) It is the legislature's specific public policy objective to 17
increase the use of hydrogen fuel cell electric vehicles in 18
Washington as another way of promoting clean alternative fuel vehicle 19
adoption in the state. It is the legislature's intent to establish an 20
eight-year pilot tax incentive program for fuel cell electric 21
S-0064.3
SENATE BILL 5000
State of Washington 67th Legislature 2021 Regular Session
By Senators Hawkins, Lovelett, Billig, Braun, Carlyle, Conway, Das,
Ericksen, Fortunato, Gildon, Hasegawa, Holy, Hunt, King, Kuderer,
Mullet, Muzzall, Nguyen, Padden, Pedersen, Rivers, Robinson, Salomon,
Sheldon, Van De Wege, Wagoner, Warnick, Wellman, Wilson, C., and
Wilson, J.
Prefiled 12/07/20. Read first time 01/11/21. Referred to Committee
on Environment, Energy & Technology.
p. 1 SB 5000

vehicles by creating a temporary partial sales and use tax exemption 1
on fuel cell electric vehicles in order to reduce the price charged 2
to customers and to evaluate the feasibility of wider adoption of the 3
use of fuel cell electric technology in transportation.4
(3) Since the tax incentive created in sections 2 and 3 of this 5
act is limited to eight years, the joint legislative audit and review 6
committee must, within the committee's appropriations, evaluate the 7
effectiveness of this tax incentive on the number of hydrogen fuel 8
cell vehicles titled in the state by November 1, 2028.9
(4) The department of licensing and the department of revenue 10
must, within the departments' respective appropriations, provide data 11
needed for the joint legislative audit and review committee analysis. 12
In addition to the data source described under this subsection, the 13
joint legislative audit and review committee may use any other data 14
it deems necessary.15
NEW SECTION. Sec. 2. A new section is added to chapter 82.08 16
RCW to read as follows:17
(1)(a) Subject to the limitations in this subsection, beginning 18
July 1, 2022, with sales made or lease agreements signed on or after 19
this date until the expiration of this section, fifty percent of the 20
tax levied by RCW 82.08.020 does not apply to sales or leases of new 21
electric passenger cars, light duty trucks, and medium duty passenger 22
vehicles, that are powered by a fuel cell.23
(b)(i) By the end of the fifth working day of each month, until 24
the expiration of the exemption as described in (c) of this 25
subsection, the department must determine the cumulative number of 26
vehicles that have claimed the exemption as described in (a) of this 27
subsection.28
(ii) The department of licensing must collect and provide, upon 29
request, information in a form or manner as required by the 30
department to determine the number of exemptions that have been 31
claimed.32
(c) The exemption under this section expires after the last day 33
of the calendar month immediately following the month the department 34
determines that the total number of vehicles exempt under (a) of this 35
subsection reaches 650. All leased vehicles that qualified for the 36
exemption before the expiration of the exemption must continue to 37
receive the exemption as described under (a) of this subsection on 38
lease payments due through the remainder of the lease.39
p. 2 SB 5000

(d) The department must provide notification on its website 1
monthly on the amount of exemptions that have been applied for, the 2
amount issued, and the amount remaining before the limit described in 3
(c) of this subsection has been reached, and, once that limit has 4
been reached, the date the exemption expires pursuant to (c) of this 5
subsection.6
(e) A person may not claim the exemption under this subsection if 7
the person claims the exemption under RCW 82.08.9999 or 82.12.9999.8
(f) The per vehicle exemption must be based on the sales price 9
for purchased vehicles and fair market value at the inception of the 10
lease for leased vehicles.11
(2)(a) Subject to the limitations in this subsection (2), 12
beginning July 1, 2022, with sales m