Commercial airplane parts

From the 2024 DOR Tax Exemption Study

82.04.627 - Commercial airplane parts Description The sale of parts to the manufacturer of a commercial airplane is deemed to take place at the site of final testing or inspection under federal aviation regulation part 21 subpart F or G. Parts sold by Washington sellers for delivery to out-of-state locales are exempt from the state B&O tax if these criteria are met. The sale of following parts and products are not eligible for an exemption from B&O tax under this section: - Standard parts manufactured in compliance with a government or established industry specification. - Products produced under a technical standard order authorization or letter of technical standard order design approval pursuant to federal aviation regulation part 21, subpart O. - Parts in which final testing or inspection under federal aviation regulation part 21, subpart F or G takes place in this state. Purpose To give incentives to commercial airplane manufacturers to locate and produce products in Washington. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $0.200 $0.210 $0.210 $0.220 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would increase reven