JLARC: Aluminum tax preferences no longer used after smelter closures; termination recommended
Get AI-powered insights, summaries, and transcripts
Subscribe
Summary
JLARC reported that Washington’s tax preferences for the aluminum industry have not been used since 2021 because all in‑state aluminum smelters closed, and recommended letting expiring preferences lapse and terminating others unlikely to be used again.
The Joint Legislative Audit and Review Committee presented a review of eight tax preferences that once benefitted Washington’s aluminum industry to the House Finance Committee on Jan. 14.
JLARC staff told the committee that four preferences scheduled to expire on July 1, 2027, and four others without expiration dates have not been used since 2021. The auditor reported all in‑state aluminum smelters have closed, meaning several preferences cannot be used unless a new smelter opens, and two remaining preferences are unlikely to be used again.
Given those conditions, JLARC recommended the Legislature allow the four smelter‑specific preferences to expire in 2027 and terminate the other four preferences that apply to companies selling power to smelters and to producers of anodes, cathodes and master alloy.