Manufacturing wood biomass fuel

Manufacturing

Businesses that manufacture wood biomass fuel are taxable under the Manufacturing Wood Biomass Fuel classification of the business and occupation (B&O) tax.

Selling

Businesses that manufacture wood biomass fuel must also report under either the Wholesaling B&O or Retailing B&O and Retail Sales tax classifications.

They may take an Interstate and Foreign Sales deduction from each selling classification for goods delivered to customers outside of Washington.

Multiple Activities Tax Credit (MATC)

Businesses that perform more than one taxable activity for the same product will report each activity under the proper classification and then take the MATC so that B&O tax is only paid once. For more information, please see the MATC section of this guide.

Definitions

Wood biomass fuel means a liquid or gaseous fuel produced from lignocellulosic feedstocks, including wood, forest, or field residue and dedicated energy crops, and that does not include wood treated with chemical preservations such as creosote, pentachlorophenol, or copper-chrome-arsenic.