HB 2716 restores a tax credit for electric and gas utilities that provide low-income energy assistance, directly affecting these utilities and the low-income households they serve through energy assistance programs. Utilities can claim a 50% tax credit on qualifying contributions (money given to low-income energy assistance programs) and billing discounts (reduced bills for eligible customers) if their spending exceeds 125% of their 2000 levels. The credit is capped at $2.5 million statewide annually, requires annual applications with specific documentation, and expires unused. The bill aims to support existing low-income energy assistance programs by incentivizing utility contributions.
HB 2398 creates a tax credit for Washington small businesses (50 or fewer employees) that provide maritime trade educational assistance to employees working aboard or servicing U.S. flagged vessels. The credit covers 100% of eligible training costs - such as tuition, tools, and maritime certification programs - up to $20,000 per business annually, with unused credits carryable for five years. It applies to both business and occupation taxes (Chapter 82.04 RCW) and public utility taxes (Chapter 82.16 RCW), excluding overlapping credits. The credit expires for claiming on January 1, 2038, and the law ends January 1, 2039. Eligible employees must be enrolled in Washington maritime training programs supporting careers like commercial fishing, marine engineering, or vessel operations.
This bill requires Washington state to formally join a federal tax credit program that incentivizes individual donations to organizations providing school scholarships. It directs the state's Department of Revenue to annually notify federal and state officials of Washington's participation, with the first notification due by April 1, 2026. The law applies to Washington residents who contribute to scholarship-granting organizations and ensures the state meets federal requirements to access these tax credits. Key provisions include annual renewal notices and rules designed to maximize the state's use of the available federal tax credits. The bill takes effect immediately to enable timely participation in the program.
HB 2187 creates a tax credit for Washington employers who provide child care assistance to their employees. It allows businesses to claim a 50% credit against their business and occupation tax for costs paid to registered child care providers, with key limits: a $50,000 annual cap per business and a $5 million statewide annual cap. The credit initially targets small businesses (under 100 full-time employees) and those joining child care consortiums (grouped businesses pooling resources) through 2028, then expands to all qualifying employers starting in 2029. The program expires on January 1, 2033, and requires electronic filing without separate applications.
HB 2162 creates a program to help new lawyers working as prosecutors or public defenders pay student loans by offering annual grants of up to $10,000 per year. It funds these grants through a tax credit for law firms that contribute to a dedicated account, allowing firms to claim a business and occupation tax credit equal to their contribution (up to $20,000 annually). The law requires the program to begin by 2027, with grants awarded based on available funds, and mandates annual reports on participation and spending. This bill directly affects public defense/prosecution lawyers and participating law firms, aiming to improve recruitment and retention in these roles through financial incentives. The program expires December 31, 2038.
HB 1043 extends the state's commute trip reduction tax credit program for employers and property managers until 2035. This program allows eligible entities to claim a tax credit for providing financial incentives to employees who use alternative commuting methods like ride-sharing, public transportation, car-sharing, or non-motorized transport. The bill changes the credit calculation so that the full amount paid to or on behalf of an employee, up to $60 per employee annually, can be credited (previously 50%). It also reduces the maximum credit a single entity can claim per fiscal year from $100,000 to $50,000.
HB 1883 extends the expiration date of a tax credit for businesses participating in Washington's customized employment training program from 2026 to July 1, 2031. The credit allows businesses to reduce their state tax bill by 50% of payments made to the training program. The bill requires the college board to submit a 2028 report detailing program outcomes, including employee training numbers, wage growth, retention rates, and geographic distribution. The legislature states that future extensions may be considered if 75% of businesses complete training and repay the allowance, based on the report's findings.
HB 1095 would allow Washington cities and counties to impose a 0.10% sales and use tax credit to fund law enforcement recruitment and retention. Local governments would collect this tax as a credit against state sales tax, with at least 50% of the revenue required to directly support hiring and retaining commissioned officers. The tax would be phased in starting in 2026 for smaller jurisdictions (under 50,000 residents), expanding to all cities and counties by 2028. This bill creates a new funding mechanism but does not alter existing officer training requirements.
HB 1703 creates a tax credit for licensed horse racing venues in Washington, allowing them to offset state sales tax payments with amounts they pay to federal horseracing safety fees under the Horseracing Integrity and Safety Act of 2020. It also authorizes the Washington Horse Racing Commission to impose fees to cover federal compliance costs, with revenues deposited into a dedicated "Washington Equine Industry Federal Regulatory Account." The account receives up to $1.5 million annually from state sales tax revenues collected by class 1 racing associations, which must be used exclusively for federal regulatory fees. The bill takes effect in 2025 for fee authority and 2026 for the tax credit, aiming to streamline compliance with federal requirements.
HB 1224 proposes to modify Washington State's Working Families' Tax Credit to make it easier for eligible low-income residents to claim the benefit. The bill would enhance the credit's administration by allowing the Department of Revenue to use data-sharing agreements with other agencies (like the Department of Social and Health Services) to verify eligibility and reduce application barriers. Eligible individuals - defined as Washington residents who file federal tax returns and meet income thresholds - would receive annual refunds ranging from $300 (no qualifying children) to $1,200 (three or more children), adjusted for inflation. The changes aim to increase participation rates by streamlining the application process and clarifying eligibility rules, though the bill remains pending in the legislature as of its January 2025 introduction.
