This bill adds new, time-limited sales and use tax exemptions to Washington’s tax chapters by creating a new section in chapter 82.08 RCW (sales tax) and a corresponding new section in chapter 82.12 RCW (use tax). The exemptions apply to sales or use of construction materials and equipment, and to charges for labor and services to install them, when those goods and services are for qualifying “manufacturing facilities” (as defined by RCW 82.04.120) or “green manufacturing facilities” (certified by a state or nationally recognized sustainability-rating organization). The bill therefore creates new tax-exemption authority and associated statutory definitions and cross-references. The bill establishes administrative procedures for claiming the exemption: facilities must apply to “the department” for an exemption certificate using department-required information, present a department-prescribed exemption certificate to sellers (who must retain a copy), and the certificate is effective on the date the department receives the application; purchases before that effective date are not refundable. Certificates expire two years after issuance unless construction has commenced. The use tax provision incorporates the same definitions and requires claimants to file annual tax performance reports as required under RCW 82.32.534 and to identify construction firms and employment levels used on the project. The bill also limits issuance and duration: no new exemption certificates may be issued on or after July 1, 2035, and the enacted exemptions are time-limited with stated expiration dates in the text. The extracted material contains conflicting expiration statements (one place says the exemptions expire January 1, 2036; other places say the new sections expire January 1, 2037), and the relationship between those dates is not explained in the provided text. The bill imposes transfer restrictions on certificates requiring prior written department consent and sets conditions under which transfers must be allowed; the text does not identify which state department administers the program and does not include penalty provisions or certain operational definitions such as what constitutes commencement of construction.

If enacted, qualifying manufacturing and certified “green” manufacturing facilities would be able to buy construction materials, equipment, and associated labor and services without paying Washington sales tax, and they would also be exempt from use tax on using those items. To get that benefit they must apply to a state department for an exemption certificate (which takes effect on the day the application is received), present that certificate to their sellers (who must keep a copy), and meet annual reporting requirements including naming construction firms and reporting employment levels. Certificates last two years unless construction has started, can be transferred only with agency approval under narrow conditions, and no refunds would be available for purchases made before the certificate’s effective date. Practically, this would lower upfront construction costs for eligible facilities during the bill’s limited window, but it also adds ongoing administrative work and some risk: applicants must file annual tax performance reports, sellers must retain copies, and buyers need to time applications so purchases occur after the certificate date. New certificates stop being issued after July 1, 2035 and the exemptions expire in early 2036–2037 (the bill text shows two different expiration dates), creating uncertainty about how long the relief is available. The text does not name which state department will run the program, does not define when “construction has been commenced,” and offers no examples of who might be excluded, so some practical implementation details remain unclear.