Bill > HB2716

This bill establishes a new tax credit for light and power businesses and gas distribution businesses in Washington state, aimed at encouraging them to increase their support for low-income energy assistance programs. Specifically, these businesses can receive a credit equal to 50% of their qualifying contributions or billing discounts, provided these amounts exceed 125% of what they provided in fiscal year 2000 (or the first year they provided such assistance if that was later). A "qualifying contribution" is money given to an organization that administers low-income home energy assistance, and a "billing discount" is a reduction in charges to qualifying low-income customers. The total statewide credit is capped at $2.5 million annually, and the credit is limited to the amount of tax owed. The bill also outlines a process for calculating a "base credit" for each business and requires them to apply annually for the credit, providing specific financial information. The Department of Commerce will oversee the notification process, and the Department of Revenue will manage the credit applications and awards. The bill includes provisions for evaluating the effectiveness of this tax preference, with a review scheduled for 2030, and requires businesses receiving the credit to provide necessary data for this evaluation. This act takes effect on July 1, 2026.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=2716&Year=2025&Initiative=false