Commercial airplane manufacturing

From the 2024 DOR Tax Exemption Study

82.04.260(11) - Commercial airplane manufacturing Description Beginning April 1, 2020, manufacturers of commercial airplanes or components of commercial airplanes, as well as tooling used in the production of commercial aircraft pay a general manufacturing B&O tax rate of 0.484% for manufacturing, wholesaling, and retailing activities. After March 31, 2021, the tax rate must be reduced to 0.357% if the Department of Commerce verifies with the U.S. trade representative that the U.S. and the European Union have entered into a written agreement that resolves any world trade organization disputes involving large civil aircraft. This preferential rate expires July 1, 2040. Purpose Encourage the assembly of commercial airplanes in Washington. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.000 $0.000 $0.000 $0.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this B&O tax rate would not increase revenues unless the Department of exemption Commerce verifies the resolution, and the preferential rate applies. Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $0.000 $0.000 $0.000 Local T