Washington State Tax Deferrals for Solar Canopies

State law establishes a tax deferral program to incentivize the construction of solar canopies, primarily in large commercial parking lots, to promote solar energy adoption and reduce greenhouse gas emissions. This program allows for the deferral of state and local sales and use taxes on eligible costs associated with building these solar canopies, provided they meet specific criteria regarding size, grid connection, and other requirements. Applicants must apply for the deferral before construction begins and submit annual performance reports. The legislation also includes provisions for tax repayment if conditions are not met, and it offers incentives for projects that utilize woman, minority, or veteran-owned businesses and pay prevailing wages. The Washington State Department of Revenue administers the application and oversight of this tax deferral program.