This bill establishes a sales and use tax exemption for qualifying farm machinery and equipment aimed at supporting small and medium-sized agricultural producers in Washington State. The exemption applies to farm equipment valued at $10,000 or more, purchased by eligible farmers whose annual gross income does not exceed $2,000,000. To qualify, farmers must provide an exemption certificate to the seller and maintain necessary records for verification. The bill also defines "farm equipment" and sets a farm income threshold that will be adjusted for inflation by December 2031.

Additionally, the bill includes provisions for the evaluation of the tax preferences created by this legislation, requiring a review by the joint legislative audit and review committee by January 1, 2035. The exemptions will be effective for sales or uses occurring on or after October 1, 2026, and will expire on October 1, 2036. The legislation emphasizes the importance of agriculture in the state and aims to enhance the competitiveness and financial stability of local farmers.