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Committee backs sales-tax exemption for in-state energy storage manufacturers
Summary
Senate Bill 213, which would exempt machinery and equipment used by qualified energy-storage manufacturing facilities from sales and use taxes, received a favorable recommendation. Industry and business-advocacy witnesses urged the committee to support growing in-state manufacturing capacity.
The House Revenue and Taxation Committee voted Feb. 28 to recommend Senate Bill 213, a measure creating a sales-and-use tax exemption for qualifying energy-storage manufacturing facilities that purchase machinery, equipment and repair parts for in-state production.
Senator Harper, the sponsor, described the bill as a narrowly tailored manufacturing exemption for qualified energy-storage manufacturers and said the exemption applies only to goods and equipment used to produce qualifying products in Utah, not rebranded or imported finished goods.
Nate Wakingshaw, CEO of Taurus (a Utah-based energy-storage firm), told the committee that only about 10% of energy-storage manufacturing currently occurs in the United States and that capital equipment is required to build and scale domestic production. He said the bill would help retain and grow in-state manufacturing and associated jobs.
The Utah Taxpayers Association also testified in favor, describing the measure as consistent with past state policy to avoid taxing manufacturing outputs and support in-state production. The committee adopted a favorable recommendation by voice vote.
The bill’s exemption is limited to qualifying facilities and in-state manufacturing; the committee heard no recorded opposition during the hearing.
