Wednesday, September 22, 2004

Wa State Incentives

Thinking along the same lines as Martin:

Considerable B&O and sales tax breaks for biodiesel business (WA State)

House Bill 1241 – Tax incentives for the distribution and retail sale of biodiesel and alcohol fuels.

Business & Occupation Tax Exemption

Summary: All persons engage in business in Washington State pay Business & Occupation Taxes. Amounts received from the retail sale or distribution of alcohol or biodiesel fuel are exempt from the Business & Occupation Tax.

Eligibility: Any person engaged in the business of retail sale or distribution of biodiesel fuel or alcohol fuel, if the alcohol fuel is at least 85% of the volume of the fuel being sold or distributed.


Sales and Use Tax Exemption

Summary: Certain investments in equipment and labor are eligible for an exemption from state and local sales and use taxes.

Eligibility: Sales and use taxes do not apply with respect to:

· Machinery and equipment, or to services rendered in respect to constructing structures or installing repairing, cleaning, altering, or improving structures or machinery and equipment used directly for the retail sale of a biodiesel or alcohol fuel blends. Structures and machinery and equipment that are also used for purposes other than the retail sale of biodiesel and alcohol fuel blends are exempt only on the portion directly associated with the retail sale of biodiesel or alcohol fuel blends.

· Fuel delivery vehicles or to sales of or charges made for labor and services rendered in respect to installing, repairing, cleaning, altering, or improving the vehicles including repair parts and replacement parts if at least 75% of the fuel distributed by the vehicles is a biodiesel or alcohol fuel blend.

Additional Definitions:
“Alcohol fuel blend” means fuel that contains at least 85% alcohol fuel by volume.
“Biodiesel fuel blend” means fuel that contains at least 20% biodiesel fuel by volume.
“Machinery and equipment” means industrial fixtures, devices, and support facilities and tangible personal property that becomes an ingredient or component thereof, including repair parts and replacement parts that are integral and necessary for the delivery of biodiesel or alcohol fuel blends into the fuel tank of a motor vehicle.

References: RCW 82.08 and 82.12

Expiration Date: July 1, 2009

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