The House Finance Committee moved substitute House Bill 2,077 forward with a due pass recommendation following debate on taxing the sale and banking of zero-emission vehicle (ZEV) credits. Committee members discussed the substitute and several amendments that would have narrowed or limited the new excise tax on ZEV credit transactions before voting 10-5 to report the measure to the next step.

Committee staff described the substitute as removing an initial tax on pulling credits and instead imposing an excise tax on sales and banking of ZEV credits, with technical clarifications and reporting requirements for manufacturers. The proposed substitute also removed references to ZEV leases and medium-duty passenger vehicles and required reporting of 2023 ZEV credit sales if manufacturers had sold credits in that model year. Several amendments were offered during committee consideration: some sought to limit the tax to model years 2024–2027, others would have eliminated the proposed banking or sale taxes, and another amendment would have redirected revenue shares between electric-vehicle incentive and infrastructure accounts.

Supporters of the bill framed the measure as a tool to capture revenue from windfall credit sales and to fund EV infrastructure and incentives; opponents said taxing credit sales or banking could reduce market liquidity or discourage manufacturers' use of the credit market. Representative Abel argued the tax would undercut EV incentives. Representatives supporting the package said proceeds would support EV rebate and infrastructure programs.

The roll call included: Representative Berg (aye); Representative Street (aye); Representative Orcut (nay, do not pass); Representative Jacobson (nay, do not pass); Representative Abel (nay, do not pass); Representative Chase (nay, do not pass); Representative Mena (aye); Representative Partially (aye); Representative Penner (nay, do not pass); Representative Rammell (aye); Representative Santos (aye); Representative Scott (aye); Representative Springer (aye); Representative Wallen (aye); Representative Wiley (aye). Staff announced 10 ayes, 5 nays, 0 excused. The committee adopted some clarifying and exemption amendments but did not adopt measures that would eliminate the banking or sale taxes.