Aerospace tax preferences

AN ACT Relating to clarifying the metric for judging the 1
effectiveness of aerospace tax preferences; and amending 2013 3rd 2
sp.s. c 2 s 1 (uncodified). 3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. 2013 3rd sp.s. c 2 s 1 (uncodified) is amended to read 5
as follows: 6
(1) The legislature finds that the people of Washington have 7
benefited enormously from the presence of the aerospace industry in 8
Washington state. The legislature further finds that the industry 9
continues to provide good wages and benefits for the thousands of 10
engineers, mechanics, and support staff working directly in the 11
industry throughout the state. The legislature further finds that 12
suppliers and vendors that support the aerospace industry in turn 13
provide a range of well-paying jobs. In 2003, and again in 2006, and 14
2007, the legislature determined it was in the public interest to 15
encourage the continued presence of the aerospace industry through 16
the provision of tax incentives. To this end, and in recognition of 17
the continuing extreme importance of the aerospace industry in 18
Washington, it is the legislature's intent to reaffirm and build upon 19
prior aerospace tax incentive legislation in a fiscally prudent 20
manner. 21
H-3420.1
HOUSE BILL 2730
State of Washington 69th Legislature 2026 Regular Session
By Representatives Street, Macri, Nance, Scott, Parshley, Ryu, and
Pollet
Read first time 02/05/26. Referred to Committee on Finance.
p. 1 HB 2730
(2) The legislature categorizes the tax preferences extended in 1
this act as intended to create or retain jobs, as indicated in RCW 2
82.32.808(2)(c). 3
(3) It is the legislature's specific public policy objective to 4
maintain and grow Washington's aerospace industry workforce. To help 5
achieve this public policy objective, it is the legislature's intent 6
to conditionally extend aerospace industry tax preferences until July 7
1, 2040, in recognition of intent by the state's aerospace industry 8
sector to maintain and grow its workforce within the state.9
(4)(a) The joint legislative audit and review committee must 10
review the tax preferences provided in this act and report to the 11
legislature by December 1, 2019, and every five years thereafter.12
(b) As part of its tax preference reviews, the joint legislative 13
audit and review committee must specifically assess changes in 14
aerospace industry employment in Washington in comparison with other 15
states and internationally. 16
(c) Beginning with its review due by December 1, 2029, the joint 17
legislative audit and review committee must specifically assess the 18
share of aerospace industry employment in Washington in comparison 19
with other states based on a rolling five-year average. To the best 20
of its ability, the committee must consider and report on whether 21
Washington's share of aerospace industry employment was significantly 22
impacted by changes in noncommercial aerospace sectors. The committee 23
must also consider large changes in employment for different types of 24
jobs across different aerospace sectors and any changing economic 25
conditions. If a review finds that the share of aerospace industry 26
employment in Washington stays the same or grows relative to other 27
states, then the legislature intends to extend the expiration dates 28
of the aerospace tax incentives.29
(d) To the extent practicable, the joint legislative audit and 30
review committee must use occupational data statistics provided by 31
the bureau of labor statistics and state agencies responsible for 32
administering unemployment insurance to perform this assessment.33
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p. 2 HB 2730