OLYMPIA, Wash. (AP) — The Washington Legislature has approved a revised bill to repeal a tax break for Boeing, a measure that was requested by the aerospace giant to resolve a long-running international trade dispute.
The Seattle Times reports that Senate Bill 6690 was passed by lawmakers Thursday, the final day of the legislative session. Boeing wanted the tax repealed to head off retaliatory trade tariffs. The tax incentive has allowed Boeing and aerospace businesses to pay a lower state tax rate compared to other manufacturing companies.
The lower rate the company wanted repealed had saved Boeing hundreds of millions of dollars since 2003. In 2013, that tax break was extended to 2040, helping convince the company to build the 777X in Everett, Washington.
Lawmakers had said that World Trade Organization tariffs could ripple out far beyond Boeing, ensnaring other Washington products like wine.
The measure would allow a return to a preferential tax rate if an agreement between the United States and European Union settles their disagreement in a way that allows for some tax incentives.
In a statement, Boeing spokesman Bryan Watt said the legislation will bring the company into compliance with the WTO’s rulings.