Washington State Department of Revenue Issues Special Notice for Businesses That Use Commercial Vehicles
Clean alternative fuel commercial vehicles and vehicle infrastructure tax credits expanded
Effective Jan. 1, 2020, a new law expands the tax credits for clean alternative fuel commercial vehicles and vehicle infrastructure. The expansion of the credit:
makes purchases of alternative fuel vehicle infrastructure eligible for the credit
increases the percentage of the incremental cost amount eligible for the credit from 50% to 75%
increases the percentage of the conversion cost eligible for the credit from 30% to 50%
updates the definition of an auto transportation company
allows credits to be earned until the total amount of credit awarded since July 15, 2015, reaches $32.5 million
Who qualifies for the credit?
You are eligible for a credit against the business and occupation (B&O) tax or public utility tax (PUT) if you meet one or more of the following:
purchase or lease a clean alternative fuel commercial vehicle
pay to have a commercial vehicle converted to mainly operate on clean alternative fuel
purchase alternative fuel vehicle infrastructure component parts, as well as related installation and construction labor and services
For more information on the credit, including how to calculate and apply for credits, refer to the notice here or contact us.