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WASHINGTON TAX EXEMPTION

Sales tax exemption for wind and solar equipment will start next month in Washington -- one of the states with greatest wind potential in the US. The tax is about 7.5% in Washington, although varies slightly from county to county. (Windpower Monthly, April 1996). On March 28, Governor Mike Lowry signed the bill proposing the tax exemption into law, the first in the Pacific Northwest. The cost of installing wind and solar plant will also be exempt from sales tax under the legislation, which expires on June 20, 2005. Renewables advocates had successfully argued that unless the tax exemption was introduced, renewables business might be attracted out of Washington to neighbouring Oregon, which does not impose sales tax on upfront capital expenditure.

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