House passes renewable-energy tax change to replace property tax with excise tax

The Washington House on Feb. 23 passed Engrossed Third Substitute House Bill 1960, a measure proponents said will replace property tax for large renewable energy systems with an excise tax intended to prevent a tax shift as equipment depreciates. The clerk reported 74 yeas, 15 nays and 9 excused.

Representative Rommel, speaking for the bill, said communities that host wind, solar and large battery storage should "see a lasting economic benefit" and that replacing the personal property tax with an excise tax is intended to keep contributions steady over time without producing unintended tax shifts for homeowners and local services. He added negotiations over specific excise rates were ongoing.

Representative Orcutt and others described the complexity of property taxation and said the measure would prevent depreciation-related shifts from falling on homeowners, farms and small businesses. Representative Dye emphasized community benefits for hosting large renewable projects, referencing Columbia County and a large wind farm shared with Garfield County.

The bill was read earlier with an effective date of Jan. 1, 2026. Having received the constitutional majority, Engrossed Third Substitute House Bill 1960 was declared passed and will be transmitted to the other chamber for further consideration.