Eliminating the investment income business and occupation tax deduction for corporations and other business entities.

HB 1284 eliminates a tax deduction that allowed corporations and other business entities to exclude investment income from Washington's business and occupation tax. This affects companies earning income from investments (like stocks or loans), particularly those investing outside Washington, which previously avoided tax on that income. The bill amends tax code to remove this deduction, with a small exception allowing deductions for investment income under 5% of annual gross receipts. The legislature states this change aims to close a perceived tax loophole, increase revenue for public schools, and create fairness by requiring all businesses to pay tax on investment income earned within the state.