// Reference

Exemptions & Deductions Library

Every Washington tax preference in one place — exemptions, deductions, credits, and preferential rates from the 2024 DOR Tax Exemption Study, with RCW citations and flags for statute areas 2025–26 legislation may affect.

Reference data, not advice. For whether a preference applies to your facts, ask Delphi, run a company scan with Scout, or, as a client, analyze your transactions in the Tax Refund Engine.

This catalog reflects the 2024 DOR Tax Exemption Study — a pre-2025 snapshot. 2025–26 legislation (ESSB 5814, SSB 6113, and others) may have changed some preferences. Verify current law before relying on any entry.

Changed by 2025–26 law786 of 786

Insurance guarantee association
RCW 48.32.130 · B&O Tax · enacted 1971
Exemption
Tow truck operator vehicle sales
RCW 82.04.040(1)(b) · B&O Tax · enacted 2019
Exclusion
Senior living community meals
RCW 82.04.040(1)(c) · B&O Tax · enacted 2023
Exemption
Precious metals and bullion
RCW 82.04.062 · B&O Tax · enacted 1985
Exclusion
Aluminum master alloy producers
RCW 82.04.110(2)(b) · B&O Tax · enacted 1997
Exclusion
Hay cubing
RCW 82.04.120(2)(a) · B&O Tax · enacted 1997
Exclusion
Seed conditioning
RCW 82.04.120(2)(a) · B&O Tax · enacted 1987
Exclusion
Seafood processing
RCW 82.04.120(2)(b) · B&O Tax · enacted 1975
Exclusion
Packing agricultural products
RCW 82.04.120(2)(d) · B&O Tax · enacted 1999
Exclusion
Computer software and digital goods
RCW 82.04.120(2)(e,f) · B&O Tax · enacted 2003
Exclusion
Semiconductor materials manufacturing after $1 billion investment
RCW 82.04.240(2) · B&O Tax · enacted 2003
Preferential Rate
Fish cleaning
RCW 82.04.2403 · B&O Tax · enacted 1994
Exclusion
Semiconductor materials manufacturing - preferential rate
RCW 82.04.2404 · B&O Tax · enacted 2006
Preferential Rate
Certified aircraft repair firms
RCW 82.04.250(3) · B&O Tax · enacted 2003
Preferential Rate
Shared real estate commissions
RCW 82.04.255 · B&O Tax · enacted 1970
Preferential Rate
Flour and oil manufacturing
RCW 82.04.260(1)(a) · B&O Tax · enacted 1949
Preferential Rate
Seafood products manufacturing
RCW 82.04.260(1)(b) · B&O Tax · enacted 2012
Preferential Rate
Dairy products manufacturing
RCW 82.04.260(1)(c) · B&O Tax · enacted 2012
Preferential Rate
Fruit and vegetable manufacturing
RCW 82.04.260(1)(d) · B&O Tax · enacted 2012
Preferential Rate
Wood biomass fuel manufacturing
RCW 82.04.260(1)(e) · B&O Tax · enacted 2003
Preferential Rate
Dried pea processors
RCW 82.04.260(2) · B&O Tax · enacted 1967
Preferential Rate
Nonprofit research and development
RCW 82.04.260(3) · B&O Tax · enacted 1965
Preferential Rate
Meat processors
RCW 82.04.260(4) · B&O Tax · enacted 1967
Preferential Rate
Travel agents and tour operators
RCW 82.04.260(5) · B&O Tax · enacted 1975
Preferential Rate
International charter and freight brokers
RCW 82.04.260(6) · B&O Tax · enacted 1979
Preferential Rate
Stevedoring
RCW 82.04.260(7) · B&O Tax · enacted 1979
Preferential Rate
Insurance producers, title insurance agents, and surplus line brokers
RCW 82.04.260(9) · B&O Tax · enacted 1983
Preferential Rate
Commercial airplane manufacturing
RCW 82.04.260(11) · B&O Tax · enacted 2003
Preferential Rate
Timber and wood products extracting or manufacturing
RCW 82.04.260(12) · B&O Tax · enacted 2006
Preferential Rate
Canned salmon services
RCW 82.04.260(13) · B&O Tax · enacted 2006
Preferential Rate
Radioactive waste cleanup
RCW 82.04.263 · B&O Tax · enacted 2009
Preferential Rate
Prescription drug resellers
RCW 82.04.272 · B&O Tax · enacted 1998
Preferential Rate
Rental of real estate
RCW 82.04.280 · B&O Tax · enacted 1935
Exclusion
Radio and TV broadcasting
RCW 82.04.280(1)(f) · B&O Tax · enacted 1967
Deduction
Alternative jet fuel
RCW 82.04.287 · B&O Tax · enacted 2023
Preferential Rate
International investment management services
RCW 82.04.290(1) · B&O Tax · enacted 1995
Preferential Rate
Aerospace product development
RCW 82.04.290(3) · B&O Tax · enacted 2008
Preferential Rate
Child care
RCW 82.04.2905 · B&O Tax · enacted 1998
Preferential Rate
Chemical dependency treatment
RCW 82.04.2906 · B&O Tax · enacted 2003
Preferential Rate
Assisted living facilities
RCW 82.04.2908 · B&O Tax · enacted 2004
Preferential Rate
Aluminum manufacturing and wholesaling
RCW 82.04.2909 · B&O Tax · enacted 2004
Preferential Rate
Solar energy and silicon product manufacturers
RCW 82.04.294 · B&O Tax · enacted 2005
Preferential Rate
Grocery distribution co-ops
RCW 82.04.298(2) · B&O Tax · enacted 2001
Deduction
Hospitals exempt from workforce education surcharges
RCW 82.04.299(2)(a)(i) · B&O Tax · enacted 2019
Exemption
Provider clinics exempt from workforce education surcharges
RCW 82.04.299(2)(a)(ii) · B&O Tax · enacted 2022
Exemption
University-managed hospital in King County
RCW 82.04.301 · B&O Tax · enacted 2019
Exemption
Electricity sales for resale
RCW 82.04.310(2) · B&O Tax · enacted 2000
Exemption
Natural gas surplus sales
RCW 82.04.310(3) · B&O Tax · enacted 2007
Exemption
Bonneville Power Administration funding
RCW 82.04.310(4) · B&O Tax · enacted 2021
Exemption
Tobacco Settlement Authority
RCW 82.04.311 · B&O Tax · enacted 2002
Exemption
International banking facilities
RCW 82.04.315 · B&O Tax · enacted 1982
Exemption
Wholesale auto auctions
RCW 82.04.317; 82.04.422(1) · B&O Tax · enacted 1997
Exemption
Insurance premiums
RCW 82.04.320 · B&O Tax · enacted 1935
Exemption
Health care provider qualified health plan amounts
RCW 82.04.321 · B&O Tax · enacted 2019
Exemption
Health maintenance organizations
RCW 82.04.322 · B&O Tax · enacted 1993
Exemption
Health Benefit Exchange
RCW 82.04.323 · B&O Tax · enacted 2013
Exemption
Nonprofit blood, bone and tissue banks
RCW 82.04.324 · B&O Tax · enacted 1995
Exemption
Organ procurement
RCW 82.04.326 · B&O Tax · enacted 2002
Exemption
Adult family homes
RCW 82.04.327 · B&O Tax · enacted 1987
Exemption
Agricultural producers
RCW 82.04.330 · B&O Tax · enacted 1935
Exemption
Christmas tree producers
RCW 82.04.330; 82.04.100 · B&O Tax · enacted 1987
Exemption
Bee pollination services by apiarists
RCW 82.04.330(1) · B&O Tax · enacted 2008
Exemption
Conditioned seed wholesaling
RCW 82.04.331 · B&O Tax · enacted 1998
Exemption
Grain and unprocessed milk wholesaling
RCW 82.04.332 · B&O Tax · enacted 1998
Exemption
Small timber harvesters
RCW 82.04.333 · B&O Tax · enacted 2007
Exemption
Standing timber exclusion
RCW 82.04.334 · B&O Tax · enacted 2007
Exemption
Agricultural fairs
RCW 82.04.335 · B&O Tax · enacted 1965
Exemption
Hops processed and exported
RCW 82.04.337 · B&O Tax · enacted 1987
Exemption
Hop Commission services
RCW 82.04.338 · B&O Tax · enacted 1998
Exemption
Church child care
RCW 82.04.339 · B&O Tax · enacted 1992
Exemption
Child care resources and referral
RCW 82.04.3395 · B&O Tax · enacted 1995
Exemption
Boxing and wrestling matches
RCW 82.04.340 · B&O Tax · enacted 1935
Exemption
Horse racing
RCW 82.04.350 · B&O Tax · enacted 1935
Exemption
Ride-sharing and special needs transportation
RCW 82.04.355 · B&O Tax · enacted 1979
Exemption
Income of employees
RCW 82.04.360 · B&O Tax · enacted 1935
Exemption
Life insurance sales employees
RCW 82.04.360(1) · B&O Tax · enacted 1991
Exemption
Nonprofit camps and conference centers
RCW 82.04.363 · B&O Tax · enacted 1997
Exemption
Nonprofit organization fund-raising
RCW 82.04.3651 · B&O Tax · enacted 1998
Exemption
Nonprofit student loan organizations
RCW 82.04.367 · B&O Tax · enacted 1987
Exemption
Nonprofit credit and debt counseling
RCW 82.04.368 · B&O Tax · enacted 1993
Exemption
Fraternal insurance
RCW 82.04.370 · B&O Tax · enacted 1935
Exemption
Federal instrumentalities furnishing aid and relief
RCW 82.04.380 · B&O Tax · enacted 1935
Exemption
Nonprofit sheltered workshops
RCW 82.04.385 · B&O Tax · enacted 1970
Exemption
Real estate sales
RCW 82.04.390 · B&O Tax · enacted 1935
Exemption
Trust account amounts received by mortgage brokers
RCW 82.04.392 · B&O Tax · enacted 1997
Exemption
Academic transcripts
RCW 82.04.399 · B&O Tax · enacted 1996
Exemption
Credit unions - federal chartered
RCW 82.04.405 · B&O Tax · enacted 1970
Exemption
Credit unions - state chartered
RCW 82.04.405 · B&O Tax · enacted 1970
Exemption
Housing Finance Commission
RCW 82.04.408 · B&O Tax · enacted 1983
Exemption
Hatching eggs and poultry
RCW 82.04.410 · B&O Tax · enacted 1935
Exemption
Sand and gravel for local road construction
RCW 82.04.415 · B&O Tax · enacted 1965
Exemption
2nd Narrows bridge
RCW 82.04.416 · B&O Tax · enacted 1998
Exemption
Grants to local government
RCW 82.04.418 · B&O Tax · enacted 1983
Exemption
Local government business income
RCW 82.04.419 · B&O Tax · enacted 1983
Exemption
Regional Transit Authority Sales and Leasebacks
RCW 82.04.4201 · B&O Tax · enacted 2000
Exemption
Group discount purchases
RCW 82.04.421 · B&O Tax · enacted 1997
Exemption
Accommodation sales of automobiles
RCW 82.04.422(2) · B&O Tax · enacted 2001
Exemption
Accommodation sales
RCW 82.04.425 · B&O Tax · enacted 1955
Exemption
Nonprofit convention and tourism promotion
RCW 82.04.4251 · B&O Tax · enacted 2006
Exemption
Semiconductor microchip manufacturing after $1 billion investment
RCW 82.04.426 · B&O Tax · enacted 2003
Exemption
Federal small business innovation grants
RCW 82.04.4261 · B&O Tax · enacted 2004
Exemption
Federal small business technology transfer grants
RCW 82.04.4262 · B&O Tax · enacted 2004
Exemption
Nonprofit assisted living facilities
RCW 82.04.4264 · B&O Tax · enacted 2005
Exemption
Comprehensive cancer centers
RCW 82.04.4265 · B&O Tax · enacted 2005
Exemption
Fruit and vegetable manufacturing or processing
RCW 82.04.4266 · B&O Tax · enacted 2005
Exemption
Parking and business improvement areas
RCW 82.04.4267 · B&O Tax · enacted 2005
Exemption
Dairy products manufacturing or wholesaling
RCW 82.04.4268 · B&O Tax · enacted 2006
Exemption
Seafood products manufacturing
RCW 82.04.4269 · B&O Tax · enacted 2006
Exemption
Pollution control facilities
RCW 82.04.427; 82.34.050(2); 82.34.060(2) · B&O Tax · enacted 1967
Credit
Nonprofit youth organization fees
RCW 82.04.4271 · B&O Tax · enacted 1981
Deduction
Direct mail delivery charges
RCW 82.04.4272 · B&O Tax · enacted 2005
Deduction
Nonprofit property management
RCW 82.04.4274 · B&O Tax · enacted 2011
Deduction
Child welfare services
RCW 82.04.4275 · B&O Tax · enacted 2011
Deduction
Loans to rural electric cooperatives
RCW 82.04.4276 · B&O Tax · enacted 2023
Deduction
Investments by nonfinancial firms
RCW 82.04.4281(1)(a) · B&O Tax · enacted 1935
Deduction
Investment of businesses in related entities
RCW 82.04.4281(1)(b,c) · B&O Tax · enacted 1970
Deduction
Membership dues and fees
RCW 82.04.4282(1,2) · B&O Tax · enacted 1935
Deduction
Contributions and donations
RCW 82.04.4282(3,4) · B&O Tax · enacted 1935
Deduction
Tuition and fees
RCW 82.04.4282(5) · B&O Tax · enacted 1935
Deduction
Trade shows
RCW 82.04.4282(6) · B&O Tax · enacted 1989
Deduction
Private kindergartens
RCW 82.04.4282(7) · B&O Tax · enacted 1965
Deduction
Endowment funds
RCW 82.04.4282(8) · B&O Tax · enacted 1935
Deduction
Cash discounts
RCW 82.04.4283 · B&O Tax · enacted 1935
Deduction
Bad debts
RCW 82.04.4284 · B&O Tax · enacted 1935
Deduction
Motor fuel taxes
RCW 82.04.4285 · B&O Tax · enacted 1935
Deduction
Constitutional deductions
RCW 82.04.4286 · B&O Tax · enacted 1935
Deduction
Processing horticultural products
RCW 82.04.4287 · B&O Tax · enacted 1935
Deduction
Nonprofit kidney dialysis, nursing homes, and hospice
RCW 82.04.4289 · B&O Tax · enacted 1945
Deduction
Mental health services
RCW 82.04.4290 · B&O Tax · enacted 2021
Deduction
Services performed between local governments
RCW 82.04.4291 · B&O Tax · enacted 1967
Deduction
Interest on real estate loans
RCW 82.04.4292 · B&O Tax · enacted 1970
Deduction
Interest from state and municipal obligations
RCW 82.04.4293 · B&O Tax · enacted 1970
Deduction
Interest on agricultural loans
RCW 82.04.4294 · B&O Tax · enacted 1970
Deduction
Minor final assembly completed in Washington
RCW 82.04.4295 · B&O Tax · enacted 1977
Deduction
Funeral home reimbursement
RCW 82.04.4296 · B&O Tax · enacted 1979
Deduction
Nonprofit organization government grants
RCW 82.04.4297 · B&O Tax · enacted 1979
Deduction
Condominium homeowner maintenance fees
RCW 82.04.4298 · B&O Tax · enacted 1979
Deduction
Medicare payments to public and nonprofit hospitals
RCW 82.04.4311 · B&O Tax · enacted 2002
Deduction
Municipal sewer service payments
RCW 82.04.432 · B&O Tax · enacted 1967
Deduction
Arts organizations - income from business activities
RCW 82.04.4327 · B&O Tax · enacted 1981
Deduction
Fuel used in commercial vessels
RCW 82.04.433 · B&O Tax · enacted 1985
Deduction
Insurance claims for state health care coverage
RCW 82.04.4331 · B&O Tax · enacted 1988
Deduction
Tuition fees - foreign degree-granting institutions
RCW 82.04.4332 · B&O Tax · enacted 1993
Deduction
Medicaid payments to assisted living facilities
RCW 82.04.4337 · B&O Tax · enacted 2004
Deduction
Salmon habitat restoration grants
RCW 82.04.4339 · B&O Tax · enacted 2004
Deduction
Commercial aircraft loan interest and fees
RCW 82.04.43391 · B&O Tax · enacted 2010
Deduction
Dispute Resolution Services
RCW 82.04.43392 · B&O Tax · enacted 2012
Deduction
Paymaster Services for Affiliates
RCW 82.04.43393 · B&O Tax · enacted 2013
Deduction
Accountable communities of health
RCW 82.04.43395(1) · B&O Tax · enacted 2018
Deduction
Hospital incentive payments received through Medicaid quality improvement program
RCW 82.04.43395(2)(a) · B&O Tax · enacted 2019
Deduction
Hospital delivery system reform incentive payments
RCW 82.04.43395(2)(b) · B&O Tax · enacted 2018
Deduction
Managed care organization incentive payments
RCW 82.04.43395(3) · B&O Tax · enacted 2019
Deduction
Scan down allowances
RCW 82.04.43396 · B&O Tax · enacted 2019
Deduction
Testing and safety labs
RCW 82.04.434 · B&O Tax · enacted 2001
Credit
Manufacturing alternative jet fuel
RCW 82.04.436 · B&O Tax · enacted 2023
Credit
Using alternative jet fuel
RCW 82.04.4361 · B&O Tax · enacted 2023
Credit
Multiple activities tax credit - instate
RCW 82.04.440(2,3) · B&O Tax · enacted 1987
Credit
Multiple activities tax credit - interstate
RCW 82.04.440(4) · B&O Tax · enacted 1985
Credit
Small business credit
RCW 82.04.4451 · B&O Tax · enacted 1994
Credit
International services credit
RCW 82.04.44525 · B&O Tax · enacted 1998
Credit
Aerospace pre-production expenditures
RCW 82.04.4461 · B&O Tax · enacted 2003
Credit
Commercial airplane manufacturing - credit for taxes paid
RCW 82.04.4463 · B&O Tax · enacted 2003
Credit
Natural gas sold to direct service industry (DSI)
RCW 82.04.447 · B&O Tax · enacted 2001
Credit
Semiconductor materials manufacturing after $1 billion investment - new jobs credit
RCW 82.04.448 · B&O Tax · enacted 2003
Credit
Aluminum smelter credit for property taxes paid
RCW 82.04.4481 · B&O Tax · enacted 2004
Credit
Aluminum smelter purchases of electricity or natural gas
RCW 82.04.4482 · B&O Tax · enacted 2004
Credit
Tax paid on carbonated beverage syrup
RCW 82.04.4486 · B&O Tax · enacted 2006
Credit
Employee ownership
RCW 82.04.4488 · B&O Tax · enacted 2023
Credit
Motion Picture Program contributions
RCW 82.04.4489 · B&O Tax · enacted 2006
Credit
Workforce training costs
RCW 82.04.449 · B&O Tax · enacted 2006
Credit
Alternative fuel commercial vehicle tax credit
RCW 82.04.4496(1) · B&O Tax · enacted 2015
Credit
Alternative fuel commercial vehicle infrastructure credit
RCW 82.04.4496(2) · B&O Tax · enacted 2019
Credit
Capital gains paid
RCW 82.04.4497 · B&O Tax · enacted 2021
Credit
Washington equitable access to credit act
RCW 82.04.4499 · B&O Tax · enacted 2022
Credit
Professional employer organization wages
RCW 82.04.540(2) · B&O Tax · enacted 2006
Deduction
Electricity or gas sold to silicon smelters
RCW 82.04.545 · B&O Tax · enacted 2017
Credit
Printing by counties, cities, school districts, and libraries
RCW 82.04.600 · B&O Tax · enacted 1979
Exemption
Cigarette stamping
RCW 82.04.601 · B&O Tax · enacted 2007
Exemption
Interstate commerce - import and export shipments
RCW 82.04.610 · B&O Tax · enacted 2007
Exemption
Public development authorities
RCW 82.04.615 · B&O Tax · enacted 2007
Exemption
Prescription drug administration
RCW 82.04.620 · B&O Tax · enacted 2007
Exemption
Commercial airplane parts
RCW 82.04.627 · B&O Tax · enacted 2008
Exemption
Commercial fertilizer, agricultural crop protection products, and seed
RCW 82.04.628 · B&O Tax · enacted 2017
Exemption
Legal services to low-income persons
RCW 82.04.635 · B&O Tax · enacted 2009
Exemption
Vaccine Association assessments
RCW 82.04.640 · B&O Tax · enacted 2010
Exemption
Financial institution affiliate income
RCW 82.04.645 · B&O Tax · enacted 2010
Exemption
Financial institution investment conduit or securitization entity income
RCW 82.04.650 · B&O Tax · enacted 2010
Exemption
Joint municipal utility authority
RCW 82.04.655 · B&O Tax · enacted 2011
Exemption
Environmental handling charges
RCW 82.04.660 · B&O Tax · enacted 2015
Exemption
Restaurant employee meals
RCW 82.04.750 · B&O Tax · enacted 2011
Exemption
Nonprofit litter reduction grant income
RCW 82.04.755 · B&O Tax · enacted 2015
Exemption
Cannabis grown or cannabis products manufactured by a cooperative
RCW 82.04.756 · B&O Tax · enacted 2015
Exemption
Custom farm and farm management services
RCW 82.04.758 · B&O Tax · enacted 2022
Exemption
Newspapers - Eligible digital content
RCW 82.04.759 · B&O Tax · enacted 2023
Preferential Rate
Architectural paint assessment
RCW 82.04.765 · B&O Tax · enacted 2019
Exemption
Qualifying Grants – National emergency or state of emergency
RCW 82.04.767 · B&O Tax · enacted 2021
Exemption
Plastic bags - retail establishments
RCW 82.04.770 · B&O Tax · enacted 2020
Exemption
Carbon credits
RCW 82.04.775 · B&O Tax · enacted 2021
Exemption
Enviornmental management of used batteries
RCW 82.04.777 · B&O Tax · enacted 2023
Exemption
Minimum to file excise tax return
RCW 82.32.045(5)(a) · B&O Tax · enacted 1996
Exemption

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