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JLARC: Aluminum tax preferences no longer used after smelter closures; termination recommended

January 14, 2025 | Finance, House of Representatives, Legislative Sessions, Washington


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JLARC: Aluminum tax preferences no longer used after smelter closures; termination recommended
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.

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