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Warnick pushes for lower taxes for REC Silicon

Herald Staff Writer | Hagadone News Network | UPDATED 12 years, 3 months AGO
by Herald Staff WriterJoe Utter
| February 21, 2013 5:00 AM

OLYMPIA - Rep. Judy Warnick introduced legislation Tuesday designed to help REC Silicon in Moses Lake stay competitive in the global market.

House Bill 1912 would allow a reduced manufacturing business and occupation rate for solar panel parts to be extended to 2016. The current rate is set to expire in 2014. The incentive would keep tax rates low for REC Silicon.

"Our governor has been talking a lot about jobs in clean energy, so I wanted to offer a proposal that would help protect jobs now in Moses Lake," said Warnick, R-Moses Lake. "We know this tax incentive has a real impact on jobs in our state and it should be kept in place."

REC Silicon announced in January it would eliminate 46 positions at its Moses Lake facility due to reduced solar grade silicon production.

"To remain competitive, the organization in Moses Lake has worked very hard this past year to drive operating costs down, but under these current economic conditions it is not viable to continue production when market prices for the Siemens solar chunk product has fallen well below the cost to produce it," Silicon President Tore Torvund said in a press release.

Warnick said global competitors have an edge with a less rigorous regulatory environment and reduced taxes.

"It's sad to see REC struggle when they have had such a positive effect on our community," she said. "I hope this legislation can help them protect more jobs and allow other solar panel companies to stay competitive in this worldwide industry."

Rep. Matt Manweller, R-Ellensburg, is a co-sponsor of the bill.

The bill has been referred to the House Finance Committee. A similar bill was also presented in the Senate Tuesday.

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