Details
- Citation
- RCW 82.04.775
- Study reference
- E1194-1
- Tax type
- B&O Tax
- Preference type
- Exemption
- Category
- Business
- Year enacted
- 2021
- End date
- None scheduled
Fiscal impact (2024 study estimates)
- Revenue if repealed — local ($M)
- FY 2024: 0 · FY 2025: 0 · FY 2026: 0 · FY 2027: 0
- Revenue if repealed — state ($M)
- FY 2024: 0 · FY 2025: I · FY 2026: I · FY 2027: I
- Taxpayer savings — local ($M)
- FY 2024: 0 · FY 2025: 0 · FY 2026: 0 · FY 2027: 0
- Taxpayer savings — state ($M)
- FY 2024: I · FY 2025: I · FY 2026: I · FY 2027: I
CTI = confidential taxpayer information · D = unable to disclose
From the 2024 DOR Tax Exemption Study
82.04.775 - Carbon credits Description State law imposes a low-carbon fuel standard to reduce levels of air pollutants and greenhouse gas emissions. The Department of Ecology manages the clean fuel standards (Clean Fuels Program) to reduce the carbon intensity of transportation fuels in Washington. The Clean Fuels Program allows for the generation and trading of credits, each representing one metric ton of carbon dioxide emissions. Income businesses receive from the generation, purchase, sale, transfer, or retirement of carbon credits under the Clean Fuels Program is exempt from B&O tax. Purpose To provide tax relief to businesses that trade carbon credits under the Clean Fuels Program. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes Indeterminate Indeterminate Indeterminate Indeterminate Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this exemption would increase revenues, however, the impact exemption indeterminate at this time. Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 Indeterminate Indeterminate Indeterminate Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions Registrat
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This is reference data from the 2024 study — not advice, and 2025–26 legislation may have changed it. Three ways to go deeper: