New sales and use tax exemptions for ‘green’ vehicles begin Aug. 1

OLYMPIA, WASH. - July 30, 2019 – Customers who purchase new or used clean alternative fuel or hybrid vehicles may qualify for a sales and use tax exemption starting Aug. 1.

Washington residents can take advantage of the sales and use tax exemption if the vehicle is delivered to them between Aug. 1 and July 31, 2025.

To qualify for the tax exemption, the new or used vehicle must be either exclusively powered by a clean alternative fuel, or be a plug-in hybrid that can travel at least 30 miles on battery power alone. New vehicles cannot exceed $45,000, and used vehicles cannot exceed $30,000 in sales price or fair market value before any trade-in to qualify. The Department of Licensing will maintain a list of eligible vehicles.

Battery-powered electric marine propulsion systems and new vessels equipped with such systems are also eligible for a full sales and use tax exemption if they have continuous power greater than 15 kW AC. Buyers must provide the seller with a Buyers' retail sales tax exemption certificate at the time of purchase.

The vessel exemption expires July 1, 2025.

These exemptions are the result of 2019 legislation promoting green alternative transportation in Washington state. Gov. Jay Inslee signed Engrossed Second Substitute House Bill 2042 into law May 7.

Interested buyers can learn more about the vehicle, vessel and marine propulsion system exemptions in the following special notices:

• New clean alternative fuel and plug-in hybrid vehicle sales and use tax exemption
• New electric vessel and marine propulsion system tax exemption.

Anyone interested in learning more about the other aspects of this bill can read the special notice:

• Tax exemptions on electric vehicle infrastructure, electric vehicle batteries and fuel cells, and zero emissions buses.

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