Modifying the capital gains tax.

HB 1614 modifies Washington's capital gains tax rules by replacing the business and occupation tax credit with a new nonrefundable capital gains tax credit, closing technical loopholes, and clarifying how credits apply to taxpayers. It requires brokers and barter exchanges to report transactions, limits credit use to the tax year of the sale (with no carryforwards), and mandates monthly transfers from the general fund to education accounts based on tax reductions. The bill directly affects taxpayers with capital gains, brokers, and state education funding streams, while ensuring no net change to state tax collections. Key provisions include standardized treatment for spouses/domestic partners and new rules for adjusting transfer amounts to education funds. The changes take effect for 2025 tax years and expire January 1, 2026.