Bill > HB2077

This bill establishes a tax on zero-emission vehicle (ZEV) credits generated by automobile manufacturers under Washington's zero-emission vehicle program. The legislation imposes a 2% tax on ZEV credits sold to other manufacturers and a 10% tax on credits banked for future use, with the goal of addressing what the legislature sees as an unintended financial windfall for manufacturers. The tax applies only to manufacturers banking or selling credits associated with 25,000 or more zero-emission vehicles per model year. The department of ecology will track ZEV credit transactions, and manufacturers must report detailed information about credit sales and banking. The proceeds from this tax will be split, with 30% going to the electric vehicle incentive account and 70% initially to the state general fund, and then starting in July 2027, 70% will be directed to the carbon emissions reduction account. The bill includes provisions to protect the confidentiality of specific transaction details while allowing aggregated reporting, and it is designed to support the state's broader climate goals by creating a financial mechanism to reinvest in cleaner vehicle technologies.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=2077&Year=2025&Initiative=false