Bill > HB2089

This bill, known as the wildfire alleviation support act, aims to restore funding for Washington state's wildfire response, forest restoration, and community resilience account by modifying how certain loan interest is taxed. Specifically, it changes the definition of a "community bank" that was previously eligible for a business and occupation tax deduction on interest from certain loans. The original law allowed banks operating in ten or fewer states to receive this tax break, intended to stimulate lending in the residential housing market. However, a review found that a significant portion of the tax savings benefited large, out-of-state financial institutions, not the intended community lenders, and that these institutions' operations, like data centers, can contribute to climate warming and thus increase wildfire risk. This bill redefines the eligible entities to include "high volume mortgage lenders," which are either specified financial institutions or those with at least $10 billion in annual mortgage origination volume. The revenue generated from taxing interest received by these larger lenders will be transferred from the state's general fund to the wildfire response account, ensuring continued funding for wildfire preparedness and mitigation efforts.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=2089&Year=2025&Initiative=false