Washington · Incentive
The Tier 2 Early Adopter Incentive
In brief
Washington's Tier 2 Early Adopter Incentive pays a base $0.30 per sq ft of eligible gross floor area (about $9,000 for 30,000 sq ft), or, for multifamily owners who sign an Anti-Displacement Agreement, up to $0.75 per sq ft or the cost of compliance, whichever is lower. Participating utilities pay it after Commerce certifies full compliance. Not guaranteed.
Fund status
As of October 24, 2026, Commerce reports nearly $13.6 million awarded to Tier 2 owners whose buildings were certified compliant, over $6.7 million paid by utilities, and over $136 million left of the $150 million program. Funding is first-come, first-served. (Commerce incentive page, last updated Oct. 26, 2026; checked Oct. 27, 2026.)
How payment works
Commerce calculates the incentive by utility and fuel type and notifies utilities and the Department of Revenue. Utilities pay from public utility tax credits, so payments “may be reduced or delayed” to match a utility's ability to pay. After Commerce reserves an incentive, payment timelines currently range from four to eight weeks (Commerce bulletin, Oct. 22, 2026). Your utility may require a W-9.
Participating utilities (24)
- Avista
- Benton County PUD
- Cascade Natural Gas
- Chelan County PUD
- City of Ellensburg
- Clallam County PUD
- Clark Public Utilities
- Cowlitz PUD
- Franklin County PUD
- Grant County PUD No. 2
- Grays Harbor County PUD No. 1
- Inland Power & Light
- Jefferson County PUD No. 1
- Lewis County PUD No. 1
- Mason County PUD No. 3
- NW Natural
- Orcas Power & Light Cooperative
- Pacific Power
- Peninsula Light Co.
- Puget Sound Energy
- Richland Energy Services
- Seattle City Light
- Snohomish County PUD No. 1
- Tacoma Power
Questions
How much is the incentive, and is it certain?
No, it is not guaranteed. The base incentive is $0.30 per sq ft of eligible gross floor area; multifamily owners who sign an Anti-Displacement Agreement may get up to $0.75 per sq ft or the cost of compliance, whichever is lower. Your utility pays it, not us, from its available public utility tax credits, so payments may be partial, delayed or zero. (Source: Commerce incentive page, checked Oct. 26, 2026.)
When would the incentive arrive?
After Commerce reviews and certifies your compliance and reserves the incentive, Commerce reported in October 2026 that utility payment timelines range from four to eight weeks. Commerce's own review time is not published. Your utility may ask you for a W-9. (Source: Clean Buildings Bulletin, Oct. 22, 2026.)
Multifamily: what's the Anti-Displacement Agreement?
Multifamily owners who rent to residential tenants and sign Commerce's Anti-Displacement Agreement (Exhibit A) may be eligible for the enhanced incentive of up to $0.75 per sq ft or the estimated cost of compliance, whichever is lower. Read the agreement before signing; it adds tenant-protection commitments.
Which utilities participate?
Commerce lists 24 participating utilities, including Seattle City Light, Puget Sound Energy, Tacoma Power, Avista, Snohomish County PUD and Clark Public Utilities. Utilities with more than 25,000 customers must participate. (Commerce participating utilities list, checked October 26, 2026.)
Does an extension or exemption earn the incentive?
No. The incentive requires full compliance.
Sources, checked October 26, 2026 WA Dept. of Commerce, Tier 2 Early Adopter Incentive Program page (last updated Oct. 26, 2026); WA Dept. of Commerce, Tier 2 Incentive Participating Utilities list (Smartsheet, linked from the incentive page); WA Dept. of Commerce, Clean Buildings Bulletin, Oct. 22, 2026 (reposted by BOMA Greater Seattle); RCW 19.27A.220 (early adoption incentive program); RCW 19.27A.240 (incentive payment administration).