Energy Efficient Commercial Equipment Credit Addendum Form

Special Notice

WASHINGTON STATE DEPARTMENT OF REVENUE

JUNE 24, 2008

Energy Efficient Commercial Equipment - Sales Tax Incentive for Purchases

Beginning July 1, 2008, HB 3362 (Chapter 284, Laws of 2008) provides a business and occupation (B&O)

tax credit for purchases of certain commercial appliances that are rated energy efficient by the Consortium for

Energy Efficiency or the Energy Star Program. The amount of the credit is equal to 8.8 percent of the purchase

price of qualifying energy efficient equipment purchased between July 1, 2008 and July 1, 2010.

Qualifications

To qualify for the credit, the business’ gross income for the prior year must not exceed $750,000.

How to apply the B&O tax credit

The credit must be applied to the business’ B&O tax liability by completing the “Energy Efficient Commercial

Appliance” addendum form. The addendum must be submitted with the excise tax return. Businesses must

purchase the qualifying energy efficient commercial equipment between July 1, 2008 and June 30, 2010.

If an available credit earned during one calendar year is not fully applied, the credit may be carried over to next

calendar year. A credit cannot be claimed against B&O taxes that are due before earning the credit.

Credit limitations

A statewide annual cap on the amount of credits granted to all taxpayers is limited to $750,000. Credits are

available on a first-in-time basis. The Department will disallow any credit that exceeds the statewide annual

cap.

The Department will provide written notice to any business that has claimed the credit after the $750,000 limi-

tation has been met. The notice will indicate the amount of tax due and provide a due date within 30 days from

the date of the notice.

Qualified equipment purchases

• Commercial freezers and refrigerators meeting the Consortium for Energy Efficiency’s (Consortium) energy

efficiency tier 2 specifications dated January 1, 2006. For information about specific products, the purchase

of which qualifies for the B&O tax credit, visit

• High efficiency commercial clothes washers meeting the Consortium’s specifications dated November 14,

2007. For information about specific products, the purchase of which qualifies for the B&O tax credit, visit

• Commercial ice makers meeting the Consortium’s energy efficiency specifications dated January 1, 2006.

For information about specific products, the purchase of which qualifies for the B&O tax credit, visit

• Commercial full-sized gas convection ovens with interior measurements of six cubic feet or larger.

• Commercial deep fat fryers which are rated energy star as of August 2003. For information about specific

products, visit

• Commercial hot food holding cabinets which are rated energy star as of August 2003. For information about

specific products, visit:

P.O. BOX 47478 | OLYMPIA, WASHINGTON 98504-7478 | 1-800-647-7706 |

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Energy Efficient Commercial Equipment Credit Addendum Form - 2008