WashingtonCities review clean energy projects seeking property tax exemptions
Owners with approved tax exemption applications report completed work and planned jobs, and cities check those reports before deciding whether the property qualifies.
What it does
After construction, owners with an approved tax exemption must report completed work and planned jobs. Certain federally certified clean energy facilities must also provide labor information and a copy of the workforce or labor agreement used for construction.
Cities check whether completed work and planned jobs match the approved application and contract. For certain clean energy facilities, they also consult the state labor department about available wage and apprentice records.
For a qualifying clean energy facility, a city may allow up to two extra 24-month construction extensions when delays are beyond the owner's control and the owner acts in good faith and with due diligence.
Argument forA qualifying clean energy business delayed by circumstances beyond its control could get more time to finish construction and pursue a property tax exemption.
Argument againstExtra labor checks could add work for cities, and a clean energy project could fail to qualify if its work, jobs, or labor standards do not meet the required criteria.
More detail
Owners must report completed work and planned jobs to the city after construction. This applies when the owner has an approved tax exemption application for an industrial or manufacturing facility and has received a certificate of occupancy. For a clean energy facility that requires certification by a federal regulatory commission, the owner must also provide labor information and a copy of the executed workforce or labor agreement used for construction. The owner must state that the work was completed within three years of the conditional tax exemption certificate.
Cities must review the owner's statements and, for certain clean energy facilities, consult the state labor department about available labor records. This applies to cities reviewing tax exemption requests for industrial or manufacturing facilities. The labor review applies to a clean energy facility that requires certification by a federal regulatory commission. The city checks available information about wage law compliance, prevailing wages, and registered apprentices. The city must decide within 30 days after receiving the owner's statements. If the property qualifies, the city must file the exemption certificate with the county assessor within 30 days after that review period ends.
A city may extend the construction deadline for up to two additional periods of 24 consecutive months each for certain clean energy facilities. The owner must be seeking a tax exemption for a qualifying clean energy facility. The delay must be beyond the owner's control, and the owner must have acted and be reasonably expected to act in good faith and with due diligence. This option applies to a clean energy facility that requires certification by a federal regulatory commission. Each additional extension may last up to 24 consecutive months.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Mar 20Effective date 6/11/2026.Latest
- Mar 20Chapter 120, 2026 Laws.Major
- Mar 20Governor Bob Ferguson signed.Became Law
- Mar 12Delivered to Governor.To Governor
- Mar 11President signed.Passed Senate
- Mar 11Speaker signed.Passed House
- Mar 6Third reading, passed; yeas, 28; nays, 20; absent, 0; excused, 1.Minor
- Vote recorded 3rd Reading & Final Passage (#33). Result: pass.Upper
- Mar 6Rules suspended. Placed on Third Reading.Minor
- Mar 3Placed on second reading by Rules Committee.Minor
- Mar 2Passed to Rules Committee for second reading.
- Mar 2Minority; without recommendation.Minor
- Mar 2Minority; do not pass.Minor
- Mar 2WM - Majority; do pass.Minor
- Mar 2Executive action taken in the Senate Committee on Ways & Means at 10:30 AM.
- Feb 26Public hearing in the Senate Committee on Ways & Means at 1:30 PM.
- Feb 17First reading, referred to Ways & Means.Minor
- Feb 13Third reading, passed; yeas, 80; nays, 14; absent, 0; excused, 4.Minor
- Vote recorded 3rd Reading & Final Passage (#35). Result: pass.Lower
- Feb 13Rules suspended. Placed on Third Reading.Minor
- Feb 13Floor amendment(s) adopted.
- Feb 11Rules Committee relieved of further consideration. Placed on third reading.Minor
- Jan 12By resolution, reintroduced and retained in present status.
- 2025
- Apr 27By resolution, returned to House Rules Committee for third reading.
- Apr 7Placed on second reading by Rules Committee.Minor
- Apr 4Passed to Rules Committee for second reading.
- Apr 3Minority; without recommendation.Minor
- Apr 3Minority; do not pass.Minor
- Apr 3WM - Majority; do pass.Minor
- Apr 3Executive action taken in the Senate Committee on Ways & Means at 1:30 PM.
- Mar 18Public hearing in the Senate Committee on Ways & Means at 4:00 PM.
- Mar 13First reading, referred to Ways & Means.Minor
- Mar 11Third reading, passed; yeas, 81; nays, 15; absent, 0; excused, 2.Minor
- Vote recorded 3rd Reading & Final Passage (#10). Result: pass.Lower
- Mar 11Rules suspended. Placed on Third Reading.Minor
- Mar 11Floor amendment(s) adopted.
- Mar 111st substitute bill substituted (FIN 25).Major
- Mar 9Rules Committee relieved of further consideration. Placed on second reading.Minor
- Feb 11Referred to Rules 2 Review.Minor
- Feb 6Minority; without recommendation.Minor
- Feb 6FIN - Majority; 1st substitute bill be substituted, do pass.Major
- Feb 6Executive action taken in the House Committee on Finance at 1:30 PM.
- Jan 30Public hearing in the House Committee on Finance at 1:30 PM.
- Jan 13First reading, referred to Finance.Minor
- Jan 9Prefiled for introduction.Introduced
Taxes & BudgetEconomy & JobsEnvironment & Energy