Aerospace pre-production expenditures

From the 2024 DOR Tax Exemption Study

82.04.4461 - Aerospace pre-production expenditures Description Persons engaged in qualified aerospace product development are eligible for a B&O tax credit equal to 1.5% of qualified expenditures. Qualified expenditures include research, design, and engineering costs incurred in the development of aerospace products. Qualified expenditures exclude actual production-related costs. Commercial airplane and component manufacturers or processors for hire are eligible for the credit on expenditures incurred after December 1, 2003. Other persons are eligible for the credit on expenditures incurred after June 30, 2008. This credit expires July 1, 2040. A person who claims this credit must file a complete annual tax performance report with the department. Purpose To create jobs and promote the presence of the aerospace industry in Washington. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $75.660 $77.960 $79.470 $81.740 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this credit would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $71.463 $79.470 $81.740 Loca