This bill aims to promote the development of the alternative jet fuels industry in Washington by expanding tax preferences for businesses located in distressed areas. It introduces new provisions that allow for a reduced tax rate of 0.275 percent on the manufacturing and sale of alternative jet fuel, with specific conditions for businesses in distressed areas. The tax rate will take effect when a facility has a production capacity of at least 500,000 gallons of alternative jet fuel annually, as certified by the Department of Ecology. Additionally, the bill establishes a credit system for manufacturers of alternative jet fuel, allowing them to receive $1 per gallon sold if their product meets certain carbon emissions criteria, with the potential for increased credits based on further reductions in emissions.

The bill also amends existing laws to clarify definitions and requirements related to alternative jet fuel, including the verification process for businesses claiming credits. It mandates that the Department of Ecology notify the Department of Revenue when facilities meet production capacity thresholds. Furthermore, the bill includes a tax preference performance statement to evaluate the effectiveness of the tax incentives provided. The new provisions will take effect on July 1, 2024, and the bill ensures that if any part of it is deemed invalid, the remaining sections will still be enforceable.

Statutes affected:
Original Bill: 82.04.287, 82.04.436, 82.32.534