Bill > HB1895

This bill establishes a business and occupation tax credit for small businesses (defined as Washington-based entities with 50 or fewer employees) that provide educational assistance to their employees. Beginning January 1, 2026, businesses can receive a tax credit equal to 100% of the costs related to supporting employee educational expenses, with a maximum annual credit of $20,000 per business. To qualify, the educational assistance must be direct payments to an educational institution for expenses like tuition, books, and on-campus lodging for employees pursuing transfer associate degrees, applied bachelor's degrees, registered apprenticeships, technical degrees, or stackable credentials. Eligible employees must be enrolled in a Washington educational institution and have filed a free application for federal or state financial aid. The tax credit can be carried forward for one additional calendar year if not fully used, and the credit is only available until January 1, 2037. The legislature's goal is to address workforce challenges by encouraging small businesses to invest in their employees' education, with success measured by increases in businesses providing educational assistance and enrollment in accredited institutions. The bill reflects a policy intent to support employee education and help fill high-wage job opportunities in various industries.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=1895&Year=2025&Initiative=false