JLARC: Aluminum-industry tax preferences largely unused after smelter closures; recommends letting smelter-specific preferences expire

JLARC told the House Finance Committee that eight tax preferences intended to benefit the aluminum manufacturing industry are no longer being used because the state’s aluminum smelters have closed.

Pete Van Moorsil, JLARC staff, said four preferences that specifically benefit aluminum smelters are scheduled to expire July 1, 2027, while the other four have no expiration dates. JLARC found none of the preferences have been claimed since 2021 because all aluminum smelters in Washington have closed.

The auditor recommended allowing the four smelter-specific preferences to expire and terminating the other four preferences that benefit companies selling power to smelters, users of anodes and cathodes, and master-alloy producers, since they are unlikely to be used again if smelters remain closed.

Committee members had no questions during the presentation and JLARC closed the segment noting that future questions could be routed to staff if needed.