2025 tax preference review: Energy Sales to Silicon Smelters
December 2025
Report status
Archived
25-10 final report
Zack Freeman, research analyst
Pete van Moorsel, tax review coordinator; Eric Thomas, legislative auditor
Contact information
Legislative auditor's conclusion
Businesses are unlikely to use three tax exemptions intended to promote a silicon smelting facility.
Read the full reportKey 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
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:
Agency name:
Legislature
Status:
Not yet reported
Read an overview
Read the agency response
Legislative mandate