Electric vessel and marine propulsion system tax exemption

Intended audience: Retailers of marine equipment and vessels and consumers.

Beginning Aug. 1, 2019, the law provides a sales and use tax exemption for:

• New battery-powered electric marine propulsion systems with continuous power greater than 15 kW.
• New vessels equipped with battery-powered electric marine propulsion systems with continuous power greater than 15 kW.

The exemption has been extended to July 1, 2030.

How is the exemption claimed?

• A buyer of qualifying propulsion systems or vessels must complete a Buyer’s Retail Sales Tax Exemption Certificate and provide it to the seller.
• The seller will report the exempt sale by taking the Sales of New Electric Vessels and Marine Propulsion Systems deduction from the Retail Sales tax classification.
• If you are a registered business who is also the buyer, you must complete the Buyer’s Sales and Use Preference Addendum in My DOR when filing your excise tax return.

Definitions

Battery-powered electric marine propulsion system means a fully electric outboard or inboard motor used by a vessel whose sole source of propulsive power is the energy stored in the battery packs. The term includes required accessories such as throttles, displays, and battery packs.

Vessel includes every watercraft, other than a seaplane, used or capable of being used as a means of transportation on the water.

More information

Engrossed Second Substitute House Bill (E2SHB) 2042

Engrossed Substitute House Bill (ESHB) 2486

Renewable Energy/Green Incentives

Questions?

If you have questions please call 360-705-6705.