Fuel Cell Electric Vehicle (FCEV) Tax Exemption

Passenger vehicles, light-duty trucks, and medium-duty passenger FCEVs are exempt from state sales and use taxes. This includes used FCEVs and the first 650 purchases or leases of new FCEVs. The maximum value amount eligible for the tax exemption for new vehicles is 50% of the cost, with no cap, and for used vehicles it is the lesser of $16,000 or the fair market value of the vehicle at the time of leasing. The FCEV exemption may not be combined with the Retail Sales and Use Tax Exemption and is set to expire on June 30, 2029, or in the month following the sale or lease of the first 650 new vehicles qualifying for this exemption, whichever comes first. These caps apply to both vehicle sales and leases, with leases continuing to receive the exemption after the expiration date of the exemption if they were initiated before the expiration.

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

(Reference Revised Code of Washington 82.08.993 and 82.12.817)