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B&O tax rate for aerospace businesses
Effective April 1, 2020, Engrossed Senate Bill 6690 repealed the aerospace preferential rates in RCW 82.04.260(11). Businesses no longer report under the following line codes:
Aerospace Industry
B&O credit for preproduction development expenditures
Available to:
- Manufacturers and processors for hire of commercial airplanes or component parts of commercial airplanes.
- Non-manufacturers engaged in the business of aerospace product development.
- Certified FAR repair stations.
- Aerospace tooling manufacturers.
Qualifying activity:
Performing research, design and engineering activities to develop an aerospace product or aerospace product line.
B&O credit for property/leasehold taxes paid on aerospace business facilities
Available to:
- Manufacturers and processors for hire of commercial airplanes or component parts of commercial airplanes.
- Non-manufacturers engaged in the business of aerospace product development.
- Certified FAR repair stations.
- Aerospace tooling manufacturers.
Qualifying activity:
For manufacturers and processors for hire:
Sales & use tax exemption for aerospace businesses for computer hardware/software/peripherals
Available to:
- Manufacturers and processors for hire of commercial airplanes or component parts of commercial airplanes.
- Non-manufacturers engaged in the business of aerospace product development.
- Certified FAR repair stations.
- Aerospace tooling manufacturers.
Qualifying activity:
Purchases of computer hardware, software, and peripherals, and charges for labor and services related to the installation of such equipment.
Retail sales and use tax exemption for the construction of new facilities used to manufacture commercial airplanes, fuselages or wings of commercial airplanes
Available to:
- Manufacturers of commercial airplanes, fuselages, and wings.
- Port districts, political subdivisions, or municipal corporations who lease facilities to these manufacturers.
Qualifying activity:
Constructing new buildings and/or new additions to buildings primarily used to manufacture commercial airplanes, commercial airplane fuselages and commercial airplane wings as defined in RCW 82.32.550 and
Construction of new facilities used for airplane repair and maintenance - retail sales/use tax exemption
Available to:
- Eligible maintenance repair operator engaged in the maintenance of airplanes.
- Port district, political subdivision, or municipal corporation building and leasing facilities to an eligible maintenance repair operator engaged in the maintenance of airplanes.
Qualifying activity:
Construction of new buildings to be used for airplane repair and maintenance including:
