Bill > HB2292

This bill amends existing law to include gains from the sale or exchange of qualified small business stock, as defined by Section 1202 of the Internal Revenue Code (a federal tax code that provides tax benefits for certain small business investments), in the calculation of "adjusted capital gain" for Washington state's capital gains tax. This means that profits from selling such stock, even if they were excluded from federal capital gains calculations, will now be subject to Washington's tax on long-term capital gains, which are profits from selling assets held for more than one year. This change will apply to capital gains earned on or after January 1, 2026.