Retail Sales and Use Tax Exemption

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The retail sales and state use tax of 6.5% does not apply to the sale or lease of new or used passenger vehicles, light-duty trucks, and medium-duty passenger vehicles that are exclusively powered by an alternative vehicle fuel or are capable of running solely on electricity for at least 30 miles. Eligible alternative fuels are natural gas, propane, hydrogen, and electricity. Vehicles must not have a selling price plus trade-in property value that exceeds $45,000 for new vehicles and $30,000 for used vehicles. The maximum eligible amount for used purchased or leased vehicles is $16,000. The maximum eligible amounts for new purchased or leased vehicles are as follows:

YearMaximum Amount
Through July 31, 2021$25,000
August 1, 2021 - July 31 2023$20,000
August 1, 2023 - July 31 2025$15,000

For more information, see the Renewable Energy/Green Incentives section of Washington Department of Revenue's Incentives Programs website.

(Reference Revised Code of Washington 82.12.9999)