The bill amends existing tax law and creates new sections to impose and administer taxes and tax credits for alternative jet fuel. It establishes a 0.275% tax on persons engaging in manufacturing alternative jet fuel (with the tax base defined as the value of the product for manufacturers and gross income for processors for hire) and a 0.275% tax on retail or wholesale sales of manufactured alternative jet fuel (tax base: gross proceeds). Those tax provisions take effect July 1, 2031, apply through June 30, 2046, and the section expires July 1, 2048. The bill also creates per-gallon tax credits for both manufacturing and use/purchase of alternative jet fuel: base credit $1.00 per gallon for fuels achieving at least 50% lifecycle greenhouse gas reduction, increasing by $0.02 per additional 1% reduction beyond 50% up to a $2.00 cap, calculated only on the qualifying portion of a blend. Credits may not be earned before July 1, 2031, may not be earned after June 30, 2046, may be carried forward for only the next calendar year, are not refundable, and cannot be claimed for amounts already claimed under the specified overlapping tax sections or chapters. The bill adds certification, documentation, and administrative requirements as procedural changes. The Department of Ecology must certify carbon intensity and provide carbon intensity scores before applications; for producers electing into the clean fuels program the methods in chapter 70A.535 RCW apply, and alternative methods are prescribed for others including assignment of electricity carbon intensity by tariff or contract and treating certain renewable generation as zero-carbon. The Department of Ecology must also, in consultation with the Department of Archaeology and Historic Preservation, verify that manufacturing is not on the footprint of a listed historic cemetery or tribal burial ground within 60 days or the applicant is deemed verified. Applicants must file electronically in a department-approved format, submit specified documentation (including prior-year purchase or production amounts and Ecology certification), and receive notice of approval or denial within 60 days of a final application. Claimants must file an annual tax performance report under RCW 82.32.534, contract pricing must reflect the per-gallon credit where applicable, and eligibility for one of two claimant types is restricted (either a producer in a qualifying county or the producer’s designated in-state blender, not both). Definitions and affected parties are specified: “alternative jet fuel” is defined consistent with RCW 70A.535.010 and lifecycle carbon dioxide equivalent uses RCW 70A.45.010; a “qualifying county” is one with population under 650,000 when the application is received. The Department of Ecology, the Department of Archaeology and Historic Preservation, manufacturers, processors for hire, blenders, sellers, and purchasers of alternative jet fuel are directly affected. Important contextual details are missing from the extracted text: the specific identity of the agency referred to as “the department” for tax administration is not named here; the text for RCW 82.04.4361 is incomplete; and the amendments to RCW 82.16.187 and any newly created section text referenced in the bill header are not included, so full interactions with the referenced chapters cannot be determined from these extracts.

If enacted, the law creates a small 0.275% tax on manufacturing and sales of alternative jet fuel from July 1, 2031 through June 30, 2046 while also offering a per-gallon credit for low‑carbon jet fuels: $1 per gallon for fuels that cut lifecycle emissions at least 50%, rising by $0.02 per additional percent up to $2.00 per gallon. That combination will lower the effective tax burden for qualifying manufacturers, processors-for-hire, designated in‑state blenders, and buyers of certified low‑carbon jet fuel, especially for facilities in counties under the population threshold that qualify for the credit; contract pricing must reflect the credit so some savings are likely to reach final customers. Because credits can only offset certain taxes, can only be carried forward one year, and are not refundable, their practical cash value is limited and firms will face some constraint on liquidity and planning. Affected businesses will also face new compliance costs and timing risks: applicants must get a carbon intensity score from the Department of Ecology before applying, file electronic returns and detailed documentation, submit an annual tax performance report, and may be denied if information is incomplete; the Department of Ecology must also clear any site concerns about historic cemetery or tribal burial footprints within 60 days or the site is deemed cleared. Important administrative details are missing from the provided text — for example which agency is the tax administrator referred to as “the department,” and parts of the related tax-code amendments are incomplete — so some operational responsibilities and how this interacts with other tax provisions remain unclear.