Retail Sales and Use Tax Exemption
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:
|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)