Using alternative jet fuel

From the 2024 DOR Tax Exemption Study

82.04.4361 - Using alternative jet fuel Description A B&O tax credit is available to those using alternative jet fuel. The rules to apply for credits against B&O and PU taxes are the same; however, credits cannot be claimed against both public utility tax and B&O tax for the same fuel purchased. The credit equals $1 per gallon of alternative jet fuel having at least 50% less CO2 equivalent emissions than conventional jet fuel that a business purchased in the prior calendar year for use in flights departing in Washington. The credit amount must increase by 2 cents for each additional 1% reduction in CO2 equivalent emissions beyond 50%, not to exceed $2 per gallon. The credit is calculated only on the portion of jet fuel considered alternative jet fuel and does not include conventional jet fuel when such fuels are blended or otherwise used in a jet fuel mixture. The credit may be earned from the first day of the quarter immediately following the month when the Department of Ecology notifies the department when one or more facilities are operating in Washington with a cumulative production capacity of at least 20 million gallons of alternative jet fuel each year. No credit may be earn