(1) In computing tax under
this chapter there shall be deducted from the gross income:
(a) An amount equal to the cost of production at the plant
for consumption within the state of Washington of:
(i) Electrical energy produced or generated from
cogeneration as defined in *RCW 82.35.020; and
(ii) Electrical energy or gas produced or generated from
renewable energy resources such as solar energy, wind energy,
hydroelectric energy, geothermal energy, wood, wood wastes,
municipal wastes, agricultural products and wastes, and end-use
waste heat; and
(b) Those amounts expended to improve consumers' efficiency
of energy end use or to otherwise reduce the use of electrical
energy or gas by the consumer.
(2) This section applies only to new facilities for the
production or generation of energy from cogeneration or renewable
energy resources or measures to improve the efficiency of energy
end use on which construction or installation is begun after June
12, 1980, and before January 1, 1990.
(3) Deductions under subsection (1)(a) of this section shall
be allowed for a period not to exceed thirty years after the
project is placed in operation.
(4) Measures or projects encouraged under this section shall
at the time they are placed in service be reasonably expected to
save, produce, or generate energy at a total incremental system
cost per unit of energy delivered to end use which is less than
or equal to the incremental system cost per unit of energy
delivered to end use from similarly available conventional energy
resources which utilize nuclear energy or fossil fuels and which
the gas or electric utility could acquire to meet energy demand
in the same time period.
(5) The department of revenue, after consultation with the
utilities and transportation commission in the case of
investor-owned utilities and the governing bodies of locally
regulated utilities, shall determine the eligibility of
individual projects and measures for deductions under this
section.
[1980 c 149 § 3.]
NOTES:
*Reviser's note: RCW 82.35.020 was repealed by 2005 c 443 § 7, effective July 1, 2006.
Legislative finding -- 1980 c 149: See RCW 80.28.024.
Utility rate structures encouraging energy conservation and production from renewable resources: RCW 80.28.025.