Washington State increased a tax credit for harvesting forest biomass for use as fuel to produce electricity or steam or as a feedstock for making biofuels. The tax credit was $3 per harvested green ton. The state said in a notice on August 20 that the credit has increased as of July 1 to $5 a ton. The credit is claimed by the timber company or other person harvesting the biomass.
The state said in the same notice that a sales tax exemption on sales of “hog fuel” — bark, wood chips and similar debris left over from making lumber or paper — for use in making electricity, steam or biofuel has been extended through June 2024. The sales tax exemption has a clawback provision that requires the seller to look back two years and pay any sales taxes that were waived during that period if the taxpayer shuts down a facility in the state with a loss of jobs.
The tax changes can be found in a bill that the state legislature passed,ESSB 5882.