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• Introduced by Sen. Bob Morton, (R-Orient) (R) on January 13, 2005, to enact comprehensive tax incentives for businesses manufacturing solar energy systems using photovoltaic modules and to encourage these industries to locate in counties with high unemployment. See companion HB 1760.
  • Referred to the Senate Water, Energy, and Environment Committee on January 13, 2005.
    • Testimony in support offered to the Senate Water, Energy, and Environment Committee on January 18, 2005, by Chris Cheney, Washington Dairy Federation; Jim White, Chelan PUD; Jeremy Smithson, Solar Washington; Danielle Dixon, Northwest Energy Coalition; Toni Potter, League of Women's Voters of Washington. They testified that this bill will create renewable energy manufacturing jobs in Washington. The bill will also allow the state to maintain its edge in the solar market and stop additional solar industries from leaving the state. The solar industry is currently a $150 million dollar industry in the state with companies involved in silicon purification, crystal growth and inverter production. The bill will help capture the remaining elements of the solar energy "value chain" by creating a solar module manufacturing industry. The state's proximity to the markets for inputs and end-use products can provide a competitive edge for manufacturers locating here.
  • Substitute offered to the Senate Water, Energy, and Environment Committee on February 11, 2005, to modify the original bill. The original bill contained two B&O tax rates, one statewide rate, and the other for counties with high unemployment. The substitute provides a single rate at 0.138 percent. The substitute also includes a new provision allowing a B&O tax credit for manufacturing taxes paid. The qualifier of a high unemployment rate is replaced with a provision allowing other exemptions and credits for rural counties. A new definition of rural counties is created.
  • Referred to the Senate Ways & Means Committee on February 11, 2005.
  • Substitute offered to the Senate Ways & Means Committee on March 7, 2005, to remove unnecessary administrative provisions, and clarify that the sales tax exemption on new building included tangible personal property.
  • The substitute passed in the Senate by voice vote on March 11, 2005.
  • Referred to the Senate Rules Committee on March 7, 2005.
  • Amendment offered by Sen. Bob Morton, (R-Orient) (R) on March 11, 2005, to delete the section of the 2nd substitute bill that calls for the Joint Legislative Audit and Review Committee to report to the legislature by 11/1/2010 and 11/1/2013 on the specific effectiveness of the tax exemptions. The report would have provided guidelines for the legislature to use in determining whether or not the exemptions should be continued. The amendment passed in the Senate by voice vote on March 11, 2005.
• Passed in the Senate (48 to 0) on March 11, 2005, to enact comprehensive tax incentives for businesses manufacturing solar energy systems. [Vote Details and Comments]
• Received in the House on March 15, 2005.
  • Referred to the House Technology, Energy, and Communications Committee on March 15, 2005.
  • Amendment offered to the House on March 31, 2005, by the House Technology, Energy, and Communications Committee, to require the department of Revenue to use existing information to provide information to the Legislature regarding the impact of the incentives. In addition, the amendment changes the year for the incentives to expire from 2014 to 2010. The amendment clarifies that a person claiming credit under existing law for qualified employment positions in a rural county or for employment positions for the manufacturing of semiconductors cannot also receive the B&O job tax credit.
  • The amendment failed in the House by voice vote on April 13, 2005.
  • Referred to the House Finance Committee on April 1, 2005.
  • Referred to the House Rules Committee on April 4, 2005.
  • Amendment offered to the House on April 7, 2005, by the House Finance Committee, to strike everything after the enacting clause and insert a new bill. (H2996.1).
  • The amendment passed in the House by voice vote on April 13, 2005.
  • Amendment offered to the House on April 7, 2005, by the House Technology, Energy, and Communications Committee, to change the year in which all of the tax incentives provided in the act will expire to 2010 instead of 2014. It provides that, using existing information, the Department of Revenue must, by December 1, 2009, report to the appropriate committees of the legislature regarding the impact of the act. The report shall measure impacts of the act, including the total number of solar energy system manufacturing companies in the state, any change in the number of solar energy system manufacturing companies in the state, and, where relevant, the effect on job creation, the number of jobs created for Washington residents, and such other factors as the department selects.
  • The amendment failed in the House by voice vote on April 13, 2005.
  • Amendment offered by Rep. Cary Condotta, (R-Wenatchee) (R) on April 8, 2005, to apply the business and occupations tax rate to persons manufacturing silicon components of solar energy systems using photovoltaic modules.
  • The amendment passed in the House by voice vote on April 13, 2005.
  • Amendment offered by Rep. Jim McIntire, (D-Seattle) (D) on April 8, 2005, to terminate the preferential business and occupation tax rate June 30, 2014, instead of June 30, 2010. It requires the Department of Revenue to report on the impacts of the program by December 1, 2013 instead of December 1, 2009. (MATT 057).
  • The amendment passed in the House by voice vote on April 13, 2005.
  • Amendment offered by Rep. Ed Orcutt, (R-Kalama) (R) on April 8, 2005, to reduce the business and occupation rate for solar energy systems manufacturers and wholesalers from 0.2904 percent to 0.138 percent.
  • The amendment failed in the House by voice vote on April 13, 2005.
• Passed in the House (96 to 0) on April 13, 2005, to enact comprehensive tax incentives for businesses manufacturing solar energy systems. [Vote Details and Comments]
• Received in the Senate on April 20, 2005.
• Passed in the Senate (46 to 0) on April 20, 2005, to concur in House amendments. [Vote Details and Comments]
• Signed by Gov. Christine Gregoire on May 6, 2005, to enact comprehensive tax incentives for businesses manufacturing solar energy systems.