The bill establishes exemptions from business and occupation taxes, as well as public utility taxes, for certain amounts received by covered entities, opt-in entities, or those receiving no-cost allowances under the climate commitment act. Specifically, it adds new sections to chapters 82.04 and 82.16 of the Revised Code of Washington (RCW), stating that these chapters do not apply to amounts received from the receipt, generation, purchase, sale, transfer, or retirement of allowances, offset credits, or price ceiling units as defined in chapter 70A.65 RCW. Additionally, it clarifies that the provisions of RCW 82.32.805 and 82.32.808 do not apply to these exemptions.

The act is designed to take effect on April 1, 2024, and is deemed necessary for the immediate preservation of public peace, health, or safety, as well as the support of state government and its public institutions. It applies both retrospectively and prospectively, ensuring that the tax exemptions are applicable to relevant transactions occurring before and after the effective date.