Bill > HB1564

This bill establishes a tax credit for employers who provide child care assistance to their employees, applicable to both business and occupation (B&O) and public utility taxes, beginning January 1, 2026. The credit allows businesses to claim 100% of their child care assistance costs as a tax credit, with the credit limited to the amount of taxes otherwise due and any unused credit able to be carried forward for one additional calendar year. Child care assistance is defined broadly to include both direct wage supplements for employees to offset child care expenses and employer-provided in-house child care services. To claim the credit, employers must electronically file an application with the state department detailing their qualifying expenditures from the previous calendar year, with the department required to process applications within 60 days. Importantly, businesses cannot claim the credit for the same child care assistance costs under both B&O and public utility tax chapters. The tax credit is set to expire on January 1, 2038, and the legislature's specific policy goal is to incentivize more businesses to provide child care support for employees, with potential extension of the program if it leads to a 15% increase in businesses offering such assistance. The bill includes provisions for performance evaluation and data collection to assess the credit's effectiveness.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=1564&Year=2025&Initiative=false