The bill establishes a state business and occupation tax exemption aimed at promoting clean technology manufacturing in Washington, effective from January 1, 2025, and expiring on January 1, 2035. It specifies that manufacturers primarily engaged in clean technology manufacturing will not be subject to this tax, provided they submit an annual tax performance report. The bill defines "clean technology manufacturing" to include activities related to zero-emission vehicles, charging infrastructure, renewable hydrogen generation, and clean fuels production, among others.

Additionally, the bill includes a performance statement to evaluate the effectiveness of the tax preference, which is intended to enhance industry competitiveness and job creation. The joint legislative audit and review committee is tasked with assessing various metrics, such as average construction wages, job creation, and the impact on greenhouse gas emissions, with a report due by December 31, 2033. This evaluation aims to ensure that the tax preference effectively supports the clean technology sector and complements federal incentives.