JLARC told the House Finance Committee that eight tax preferences intended to benefit Washington’s aluminum industry are no longer being used because all in-state aluminum smelters have closed, and the legislative auditor recommended letting smelter-specific preferences expire.

Van Moorsil said four of the preferences that directly benefited aluminum smelters were scheduled to expire July 1, 2027; none of the preferences had been used since 2021. JLARC recommended that the legislature allow the four smelter preferences to expire and terminate the four remaining preferences for firms selling power to smelters and for anode/cathode and master-alloy producers, noting that six preferences cannot be used again if a new smelter opens and the other two are unlikely to be used.

Why it matters: The preferences had been targeted at smelters and related operations; with no smelters in operation statewide, the fiscal and policy rationale for the preferences no longer applies, JLARC said.

Details

- JLARC concluded that the preferences are not being used and therefore recommended expiration or termination as applicable.
- The committee had no substantive questions on this item during the hearing.

Ending

JLARC recommended statutory cleanup to allow expiration or termination of the legacy preferences; no committee action was taken at the hearing.