Budget & Taxes (Tax Incentives)

passed · Washington · Senate Mar 12, 2026

SB 6343: Providing tax relief to Washington residents impacted by the atmospheric river and winter weather event.

SB 6343 provides property tax relief to Washington homeowners whose property was damaged or destroyed by the atmospheric river and winter weather events. It allows for reduced property valuations and tax refunds if the property lost over 20% value in a declared disaster area, with refunds calculated based on days remaining in the tax year after the damage. The bill also creates a three-year tax exemption for physical improvements to single-family homes rebuilt after qualifying disasters, limited to the value reduction amount. This relief applies to properties in areas declared disaster zones by the governor or county authority, with applications due by October 1, 2026, for recent weather events.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides property tax relief and exemptions for disaster-affected homeowners, directly advancing tax relief policies for impacted residents.95% confidence

Sub-Topics Property Tax Tax Incentives

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in committee · Washington · House Feb 4, 2026

HB 2723: Modifying existing tax preferences.

HB 2723 modifies Washington State's tax code by eliminating outdated tax exemptions, specifically targeting 786 existing exemptions that the legislature states have not been updated for a long time and were secured through private interests. The bill directly affects businesses currently benefiting from tax exemptions on machinery and equipment used in manufacturing, testing, or research operations, including gas distribution businesses that will lose their exemption for natural gas production equipment after July 1, 2027. Key provisions include amending tax codes to restrict exemptions for machinery/equipment to specific qualifying uses, requiring documentation for claims, and ending remittance programs for gas businesses starting in 2027. The goal is to increase revenue for the state general fund to support essential services by modernizing the tax code.

Topics ✓ Budget & TaxesSupports Budget & TaxesEliminates 786 outdated tax exemptions (including business loopholes), closing tax loopholes secured through private interests to promote fiscal responsibility.95% confidence

Sub-Topics Business Taxes Sales Tax Tax Incentives

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in committee · Washington · House Feb 2, 2026

HB 2716: Restoring the public utility tax credit for low-income assistance.

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.

Topics ✓ Budget & TaxesSupports Budget & TaxesRestores tax credit for utilities providing low-income energy assistance, providing tax relief to fund essential programs for vulnerable households.95% confidence ✓ EnergySupports EnergyRestores tax credit for utilities providing low-income energy assistance, directly protecting vulnerable consumers and promoting energy affordability through billing discounts and program funding.95% confidence

Sub-Topics Business Taxes Tax Credits Tax Incentives Energy Efficiency Utility Regulation

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in committee · Washington · House Feb 20, 2026

HB 2730: Clarifying the metric for judging the effectiveness of aerospace tax preferences.

HB 2730 clarifies how Washington state will evaluate whether tax incentives for the aerospace industry remain effective. It requires the Joint Legislative Audit and Review Committee to annually assess aerospace employment in Washington compared to other states using a five-year average of employment data starting in 2029. If Washington’s share of aerospace jobs stays the same or grows relative to other states, the tax incentives will automatically extend until 2040. The bill directly affects aerospace companies receiving tax preferences by tying their continued eligibility to measurable workforce outcomes. It amends a 2013 provision to establish this specific employment-based metric for evaluating the incentives' success.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill extends tax incentives for aerospace industry, maintaining tax preferences through automatic renewal criteria.95% confidence

Sub-Topics Audits & Accountability Business Taxes Tax Incentives

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in committee · Washington · Senate Jan 15, 2026

SB 6150: Providing tax relief for businesses and properties impacted by the Fairfax bridge closure.

SB 6150 provides tax relief for businesses and property owners in a specific area affected by the Fairfax bridge closure. It exempts businesses from certain state taxes (under RCW 82.04) on income received during the closure and waives property taxes (under RCW 84.36) for properties located within three miles of State Route 165 south of the SR 162 junction. The relief applies from January 1, 2026 (property taxes) or July 1, 2026 (business taxes) through the end of the calendar year when a new bridge opens over the Carbon River. Both exemptions expire the year after the new bridge opens, with property tax relief also applying retroactively to 2026 taxes.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides explicit tax exemptions/waivers for businesses and properties impacted by bridge closure, directly advancing tax relief under Budget & Taxes topic per indicators.95% confidence

Sub-Topics Business Taxes Sales Tax Tax Incentives

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in committee · Washington · House Jan 30, 2026

HB 2708: Removing a tax exemption for the replacement of equipment for data centers.

HB 2708 removes a tax exemption for data center equipment replacement in Washington State, directly affecting data center operators currently using this exemption. The bill eliminates the tax break for purchasing new server equipment and power infrastructure, with existing exemptions set to expire by July 2048. It also requires qualifying data centers to meet new employment thresholds - adding 35 family wage jobs or 3 per 20,000 sq ft of new server space - to maintain their exemption. New exemption certificates for refurbished data centers can no longer be issued after July 2026, and all new applications for this exemption are prohibited after that date.

Topics ✓ Budget & TaxesSupports Budget & TaxesRemoves tax exemption for data centers, closing a loophole to increase state revenue and strengthen fiscal management.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentBill mandates data centers to add 'family wage jobs' as condition to maintain tax exemption, directly promoting job creation and quality employment standards.90% confidence ✗ TechnologyOpposes TechnologyBill eliminates tax exemption for data center equipment replacement, increasing operational costs for tech infrastructure operators and restricting financial incentives for data center expansion.92% confidence

Sub-Topics Business Taxes Procurement Tax Incentives

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signed · Washington · Senate Apr 1, 2026

SB 6231: Removing a tax exemption for the replacement of equipment for data centers.

SB 6231 removes a tax exemption that previously allowed data centers to avoid sales tax on equipment replacements. This directly affects data center operators and tenants who currently benefit from the exemption, ending new applications after July 1, 2026, and requiring existing exemption holders to meet new job creation rules. Specifically, data centers must demonstrate a net increase of 35 family-wage jobs (or 3 per 20,000 sq ft) to maintain their exemption, with the requirement applying to both owners and tenants. All existing exemptions for equipment replacement will expire by July 1, 2048, and no new exemptions can be issued after 2026. The bill aims to generate state revenue by ending this tax preference while tying existing benefits to job growth requirements.

Topics ✓ Budget & TaxesSupports Budget & TaxesRemoves tax exemption for data centers, closing a loophole to increase state revenue and promote fiscal responsibility per Budget & Taxes indicators.95% confidence ✓ Labor & EmploymentSupports Labor & EmploymentRequires data centers to create 35 family-wage jobs to maintain tax exemption, directly advancing employment standards and worker compensation.90% confidence

Sub-Topics Business Taxes Sales Tax Tax Incentives

in committee · Washington · House Jan 27, 2026

HB 2227: Providing a real estate excise tax exemption for the sale of qualified affordable housing.

HB 2227 would exempt sales of "qualified affordable housing" from Washington's real estate excise tax. This bill amends the state's tax code (RCW 82.45.010) to create this specific exemption for qualifying affordable housing properties. The exemption directly affects sellers of eligible affordable housing units, reducing their tax burden when selling such properties. The bill is currently pending in the House Finance Committee after being prefaced in December 2025.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts affordable housing sales from real estate tax, providing targeted tax relief for lower-income housing transactions.90% confidence ✓ HousingSupports HousingExempts affordable housing sales from real estate tax, reducing seller costs to encourage development and increase supply of affordable units.95% confidence

Sub-Topics Sales Tax Tax Incentives Affordable Housing Housing Finance Property Taxes

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in committee · Washington · House Jan 22, 2026

HB 2638: Creating a property tax exemption for surviving spouses or domestic partners of officers and firefighters who have died from duty-related injury or disease.

HB 2638 creates a property tax exemption for surviving spouses or domestic partners of Washington state or local officers and firefighters who died from duty-related injuries or diseases. The exemption applies to the primary residence of qualifying survivors, reducing or eliminating property taxes based on their combined income level (with three income thresholds). Survivors with the lowest income are exempt from all property taxes, while those with higher incomes receive partial exemptions on a portion of their home's value. This policy change directly affects eligible surviving family members by easing their property tax burden, as outlined in new provisions to Washington's property tax code.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates property tax exemption for lower-income survivors, providing direct tax relief through reduced property taxes for qualifying households.95% confidence

Sub-Topics Property Tax Tax Incentives

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in committee · Washington · House Jan 27, 2026

HB 2673: Establishing tax exemptions for property used as affordable housing owned or operated by a social housing agency.

HB 2673 proposes a tax exemption for property used as affordable housing owned or operated by social housing agencies in Washington State. This bill directly affects affordable housing providers by removing certain property taxes on qualifying properties. The key mechanism adds an exemption to existing tax codes, specifically excluding from taxation real property used for affordable housing under a social housing agency's ownership or operation. The exemption applies to properties meeting the bill's defined criteria for affordable housing use, without altering other tax obligations.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides tax exemption for affordable housing properties, reducing property tax burden on social housing agencies, aligning with tax relief for lower-income housing services.95% confidence ✓ HousingSupports HousingTax exemption for affordable housing properties reduces costs for social housing agencies, directly advancing affordable housing access and development.95% confidence

Sub-Topics Tax Incentives Affordable Housing Housing Finance Property Taxes

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