The bill seeks to enhance the production of low-to-zero carbon alternative jet fuel in Washington state by clarifying tax incentives for producers. It introduces a new section that emphasizes the significance of alternative jet fuel in meeting state emissions targets and the necessity for substantial capital investment in production facilities. The bill amends existing tax laws, specifically RCW 82.04.287, 82.04.436, 82.04.4361, and 82.16.187, to define "alternative jet fuel," establish a tax rate of 0.275 percent for manufacturers and sellers effective from July 1, 2031, through June 30, 2046, and provide tax credits of $1 per gallon for fuels with at least 50 percent lower lifecycle carbon emissions compared to conventional jet fuel.

Additionally, the bill outlines new requirements for claiming credits, mandating that applicants electronically submit documentation, including business details and proof of alternative jet fuel purchases, along with a carbon intensity score from the Department of Ecology. Credits can be claimed starting July 1, 2031, and must be reported annually, with the option to carry over credits to the next calendar year but not beyond. The bill also establishes that no refunds will be granted for these credits and clarifies that credits cannot be earned after June 30, 2046. The provisions are set to expire on July 1, 2048, aiming to streamline the credit claiming process while ensuring adherence to environmental standards.

Statutes affected:
Original bill: 70A.535.150, 82.04.287, 82.04.436, 82.32.534
Substitute bill: 82.04.287, 82.04.436, 82.04.4361, 82.16.187