Who are the entities whose state tax liabilities are directly affected by the tax preference?

Direct Beneficiaries

The direct beneficiaries of the preference are utilities that claim the tax credit.  In 2015 there were 39 utilities out of approximately 60 statewide that claimed the preference.  That number has increased each year since the program began.  Three utilities are investor-owned, 12 are member-owned (such as mutuals and cooperatives) and 24 are public (such as cities and public utility districts).

The number of utilities applying for the credit has increased each year since the preference began

Source: JLARC staff analysis of DOR tax return data.

Indirect Beneficiaries

The indirect beneficiaries of the preference are participants in the programs administered by the utilities.  Participants receive payments from utilities based on the amount of power their renewable energy systems generate, regardless of whether they use the power or it flows back into the grid.  Since 2011, the Department of Revenue (DOR) has certified 8,923 systems with a total capacity of 59,400 kW.

To the extent the preference increases the purchase of Washington-made technologies, the manufacturers of these technologies are also indirect beneficiaries.  There are currently three businesses selling products that are certified Made in Washington by DOR.

While the statute did not mention installation work, there are a number of workers in Washington installing solar energy systems who may be indirect beneficiaries.  The Solar Foundation estimates in its 2015 solar jobs census that Washington has 1,429 solar installation jobs.