OLYMPIA — Gov. Jay Inslee on Wednesday signed legislation to repeal a tax break for the Boeing Co. on April 1 and not give it all back in the future.
Senate Bill 6690 seeks to resolve an international trade dispute between the U.S. and the European Union and prevent billions of dollars in retaliatory tariffs on the aerospace giant’s planes, its suppliers’ products and other Washington exports such as fruit, wine and seafood.
Boeing asked lawmakers to erase its preferential business-and-occupation tax rate, which the World Trade Organization deemed an illegal subsidy.
Under the new law, the tax rate for Boeing and the rest of the aerospace industry could be lowered slightly — though not as low as it is today — if the U.S. and the EU enter into a written agreement resolving any WTO disputes involving large civilian aircraft.
The new law also requires Boeing to employ a minimum percentage of apprentices as part of its workforce.