Airplane pre-production computer expenditures

From the 2024 DOR Tax Exemption Study

82.08.975; 82.12.975 - Airplane pre-production computer expenditures Description Sales of computer hardware, peripherals, or software used primarily in the development, design, or engineering of aerospace products or to provide aerospace services, are exempt from sales and use taxes. Charges for labor and services rendered in respect to installing the computer hardware, peripherals, or software are also exempt from sales and use taxes. This exemption expires July 1, 2040. Purpose Encourages the retention and expansion of the aerospace industry in Washington. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $6.800 $6.900 $7.100 $7.200 Local Taxes $3.600 $3.700 $3.800 $3.900 Repeal of Repealing this exemption would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $6.300 $7.100 $7.200 Local Taxes $0.000 $3.400 $3.800 $3.900 Assumptions - This repeal takes effect July 1, 2024, and impacts 11 months of collections in fiscal year 2025. - Growth rate mirrors the consumer price index reflected in the Economic and Revenue Forecast Council's March 2023 forecast. - Local reven