Bill > SB5811

This bill establishes a tax on zero-emission vehicle (ZEV) credits to address what the legislature sees as an unintended financial windfall for manufacturers in the zero-emission vehicle program. Beginning with model year 2024, manufacturers will be taxed on three types of ZEV credit activities: sales, banking, and pooling. The tax rates vary, with a 2% tax on credits sold to other manufacturers, a 10% tax on banked credits, and a sliding scale tax on pooled credits (ranging from 10% to 50% depending on the manufacturer's ZEV sales performance). The tax only applies to manufacturers that bank or sell credits associated with more than 25,000 zero-emission vehicles per model year. The proceeds from this tax will be distributed, with 30% going to the electric vehicle incentive account and 70% initially to the state general fund, and then starting in July 2027, to the carbon emissions reduction account. The bill requires detailed reporting of ZEV credit transactions by manufacturers to the Department of Ecology and Department of Revenue, with provisions to protect the confidentiality of specific transaction details. The legislature's intent is to reinvest the tax proceeds into programs and incentives that further state climate goals by promoting cleaner vehicles.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=5811&Year=2025&Initiative=false