Bill > HB1016

This bill provides tax incentives for employers who hire veterans and military spouses by creating tax credits for businesses paying wages to qualified employees. Beginning January 1, 2026, eligible employers can claim a credit equal to 20% of wages and benefits paid to a qualified employee, up to $3,000 per employee. To qualify, an employee must be a veteran or spouse of an active-duty military member, working full-time (at least 35 hours per week) for two consecutive full calendar quarters. The bill applies to both business and occupation (B&O) tax and public utility tax, with a total annual cap of $5,000,000 in credits across both tax types. Credits can be carried over to future years if the annual cap is reached, and can be used until January 1, 2036, with no credits claimable after January 1, 2037. Employers are restricted from claiming a new credit for one year if they discharge a qualified employee, unless the termination is due to misconduct, a felony, or gross misdemeanor. The legislature's primary policy objective is to provide employment opportunities for veterans and military families by reducing employers' tax burdens and encouraging job creation for these groups. The bill includes a performance evaluation mechanism that will assess the program's success based on veteran unemployment rates.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=1016&Year=2025&Initiative=false