IF you are constructing a facility generating more than 1,000 watts AC (1 KW) (Example: Enough energy to power at least 10-15 incandescent light bulbs or a household dishwasher) of electricity from any of these power sources,

OR

Constructing a solar energy system capable of generating more than 500 kilowatts AC (example: Enough energy to power more than a dozen homes) of electricity,

THEN

You can receive up to a 100% refund of the sales tax spent on the energy-producing equipment.

100% Tax Refund

To receive a 100% tax refund, you must submit an Application for Clean Energy Labor Standards Certification (F303-002-000) with the following:

• A signed Project Labor Agreement (PLA) or Community Workforce Agreement (CWA) prior to the start of the project.

A PLA or CWA is defined as a collective bargaining agreement with one or more labor organizations that establishes the terms and conditions of employment on the project.

75% Tax Refund

To receive a 75% tax refund, you must submit an Application for Clean Energy Labor Standards Certification (F303-002-000) prior to the start of the project.

At the end of the project (the end date you place on the application), you must provide documentation to L&I (see below) indicating that you met all of the following criteria:

• 21% of contract dollars awarded were to women-owned businesses, minority-owned businesses, or veteran-owned businesses.
• 15% of the project's total labor hours were performed by registered apprentices approved by the Washington State Apprenticeship and Training Council (WSATC).
• 35% (20% for rural counties*) of the project’s total labor hours were performed by local residents.
• Contracts awarded were to businesses that have no findings of violation of federal or state wage and hour laws and regulations.
• All workers performing labor hours on the project were paid equal to or more than prevailing wages as determined by the department under Chapter 39.12 RCW. 
  • See Public Works Project.
• Good-faith efforts are met for any of the criteria above, as defined in Chapter 296-140-002 WAC.

* Rural county: Counties with a population density of less than 100 people per square mile or a county smaller than 225 square miles as determined by the state Office of Financial Management.

50% Tax Refund

To receive 50% tax refund, you must submit an Application for Clean Energy Labor Standards Certification (F303-002-000) prior to the start of the project.

At the end of the project (end date you place on the application), you must provide documentation to L&I (see below) indicating that you met all of the following criteria:

• 21% of contract dollars awarded were to women-owned businesses, minority-owned businesses, or veteran-owned businesses.
• 15% of the project's total labor hours were performed by registered apprentices approved by the Washington State Apprenticeship and Training Council (WSATC).
• 35% (20% for rural counties*) of the project’s total labor hours were performed by local residents.
• Contracts awarded were to businesses that have no findings of violation of federal or state wage and hour laws and regulations.
• Good faith efforts are met for any of the criteria above, as defined in Chapter 296-140-002 WAC.

* Rural county: Counties with a population density of less than 100 people per square mile or a county smaller than 225 square miles as determined by the state Office of Financial Management.

IF you are constructing solar energy systems capable of generating more than 100 kilowatts AC, but no more than 500 kilowatts AC (example: Powering up to about a dozen homes) of electricity,

THEN, you can receive 50% refund of the sales tax spent on the energy-producing equipment.

You must submit an Application for Clean Energy Labor Standards Certification (F303-002-000) prior to the start of the project.

At the end of the project (the end date you place on the application), you must provide documentation to L&I (see below) indicating that you met all of the following criteria:

• 21% of contract dollars awarded were to women-owned businesses, minority-owned businesses, or veteran-owned businesses.
• 15% of the project's total labor hours were performed by registered apprentices approved by the Washington State Apprenticeship and Training Council (WSATC).
• 35% (20% for rural counties*) of the project’s total labor hours were performed by local residents.
• Contracts awarded were to businesses that have no findings of violation of federal or state wage and hour laws and regulations.
• Good faith efforts are met for any of the criteria above, as defined in Chapter 296-140-002 WAC.

* Rural county: Counties with a population density of less than 100 people per square mile or a county smaller than 225 square miles as determined by the state Office of Financial Management.

To receive a deferral, a project developer must comply with specific labor standards described below. Applications must be received by June 30, 2032. Projects must be completed by Jan. 1, 2033.

Qualified projects must meet the standards in one of these categories:

• Clean technology manufacturing, clean alternative fuels production, and renewable clean energy storage (projects must be at least $2 million).
• Solar canopies on large-scale commercial parking lots and other similar areas (must produce at least 1 MW of energy).

The labor standards L&I will use to certify a project can be included in a Project Labor Agreement (PLA) or Community Workforce Agreement (CWA). A project without a PLA or CWA must still fulfill the labor standards, described below.

In the application to L&I, you will need to decide one of three tax deferral amounts sought:

• 50% - If your project meets labor standards with procurement from: women, minority, veteran-owned businesses; apprentice utilization; and local-hire. You must also be in good standing with federal and state wage and hour laws.
• 75% - If your project meets the above and pays prevailing wage.
• 100% - If your project has a PLA or CWA. You will need to include the agreement in your application.

This section details how to apply for sales and use tax refunds and deferrals.

Refunds – for large or small generation projects

Prior to the start of your project, fill out an Application for Clean Energy Labor Standards Certification (F303-002-000) and send it to L&I.

Deferral – for qualifying projects

Prior to the start of your project, please contact L&I at CleanEnergyReview@Lni.wa.gov, to request an application. Submit the completed application to L&I. We will contact you within 7-10 business days regarding next steps.

• If your application is approved, we will send you a letter of certification. This letter must be provided to the state Department of Revenue to receive a tax incentive.
• If your application is denied, it is because you did not meet at least one of the requirements, or acted in good faith as defined in Chapter 296-140-002 WAC.

We will send you a letter with the detailed findings and unmet criteria.

Sending an application to L&I

Email: CleanEnergyReview@Lni.wa.gov

Mail:
Clean Energy Review
Washington State Department of Labor & Industries
7273 Linderson Way S.W.
Tumwater, WA 98501-5414

Questions? Call 360-902-5335 and press option 4 or email CleanEnergyReview@Lni.wa.gov.

This page reflects all current and proposed Clean Energy rules.

See complete information about Clean Energy and all L&I rulemaking.

Proposed Permanent Rule

CR-102 TBA

Emergency Rule

Clean Energy: Labor Standards for Tax Incentives
Chapter 296-140 WAC, Clean Energy Labor Standards Certification
Expiration Date: 02/25/2023

Rulemaking Activity

1. 10/28/2022 CR-103E Emergency Rulemaking
2. 10/28/2022 CR-103E Adoption Language
3. 10/28/2022 Effective Date
4. 02/25/2023 Expiration Date

Questions? Call 360-902-5335 and press option 4 or email CleanEnergyReview@Lni.wa.gov.