Washington – Tax Credit for Harvesters of Forest-Derived Biomass

SALT Report 2891 – The Washington Department of Revenue issued a special notice stating that the B&O tax credit for harvesters of forest derived biomass that is sold, transferred, or used for the production of electricity, steam, heat, or biofuel will remain in effect until June 30, 2015.

The credit on forest-derived biomass is calculated as follows:

  • When harvested from October 1, 2009, through June 30, 2010 – $0 per harvested green ton
  • When harvested July 1, 2010, through June 30, 2013 – $3 per harvested green ton
  • When harvested from July 1, 2013, through June 30, 2015 – $5 per harvested green ton

When claiming the credit, the amount allowed for any reporting period cannot exceed the total tax due for that reporting period. If there is an unused credit amount, it should be carried forward and taken in a future reporting period.

For purposes of the credit, qualified “harvesters” are defined as a person who, from the person’s own land or from the land of another under a right or license granted by lease or contract, either directly or by contracting with others, fells, cuts, or takes timber for sale or for commercial or industrial use.

For Further Information

Washington Department of Revenue – Special Notice