2025 tax preference review: Energy Sales to Silicon Smelters
25-10 final report | December 2025
Zack Freeman, research analyst
Pete van Moorsel, tax review coordinator; Eric Thomas, legislative auditor
Legislative Auditor's conclusion
Businesses are unlikely to use three tax exemptions intended to promote a silicon smelting facility.
Key points
- Three preferences give tax exemptions for natural gas or electricity sold to or used by a silicon smelter.
- The preferences were intended to promote the development of a silicon smelting facility in northeastern Washington.
- The business built the smelting facility in Tennessee instead of Washington.
- No business has claimed the preferences. There are no silicon smelters operating in Washington, and there are no active permits to develop one.
Legislative Auditor’s recommendations
The Legislative Auditor makes one recommendation.
Recommendation #1
The Legislature should allow the three preferences to expire on July 1, 2027.
Legislation required: No
Fiscal impact: None
Implementation date: July 1, 2027
Commission recommendation: Endorse without comment (HTML)
Read the full report
Energy Sales to Silicon Smelters (HTML)