Budget & Taxes (Tax Incentives)

in committee · Washington · House Jan 12, 2026

HB 1318: Providing a sales and use tax exemption for children's diapers.

HB 1318 exempts children's diapers from Washington State's sales and use taxes, directly benefiting parents and caregivers who purchase diapers for infants and toddlers who cannot control bladder or bowel movements. The bill adds specific exemptions to the state's tax code, removing diapers from both sales tax (RCW 82.08) and use tax (RCW 82.12) requirements. It defines "diaper" as reusable or disposable absorbent garments marketed for young children with incontinence needs. The exemption takes effect January 1, 2026.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts diapers from sales/use tax, providing tax relief for middle/lower income families purchasing a necessity, aligning with tax relief indicators.95% confidence

Sub-Topics Sales Tax Tax Incentives

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in committee · Washington · House Jan 12, 2026

HB 1895: Establishing a business and occupation tax credit for small business employers providing educational assistance to employees.

HB 1895 creates a tax credit for Washington small businesses (50 or fewer employees) that pay for employees' educational expenses at accredited institutions. The credit covers 100% of costs for tuition, books, and on-campus lodging related to associate degrees, apprenticeships, or technical programs, up to $20,000 per business annually. Businesses must apply through the state department, and unused credits can be carried forward for one year. The credit expires January 1, 2037 for the benefit amount and January 1, 2038 for the entire provision.

Topics ✓ Budget & TaxesSupports Budget & TaxesCreates tax credit for small businesses, reducing their tax burden and incentivizing educational investment, aligning with tax relief and workforce development goals.90% confidence ✓ Labor & EmploymentSupports Labor & EmploymentProvides tax credit for employer-funded employee education, expanding workforce development opportunities and enhancing employment standards through skill-building.85% confidence

Sub-Topics Business Taxes Tax Credits Tax Incentives Apprenticeships Tags Small Business

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in committee · Washington · House Jan 12, 2026

HJR 4207: Concerning property tax relief.

This constitutional amendment proposal (HJR 4207) would allow Washington voters to approve a homestead property tax exemption for primary residences. If approved, it would permit the legislature to create a tax break reducing the taxable value of qualifying homes by up to $250,000 for state taxes only. The amendment includes safeguards to prevent shifting tax burdens to other properties and allows for annual adjustments to the exemption amount. It requires voter approval at the next general election, as the proposed constitutional change is not yet law.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides property tax exemption for primary residences, reducing taxable value by up to $250k, aligning with tax relief for homeowners per bill summary.95% confidence ✓ HousingSupports HousingBill provides property tax relief for primary residences, supporting property rights and homeownership affordability within housing policy.85% confidence

Sub-Topics Property Tax Tax Incentives Property Taxes

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in committee · Washington · House Jan 12, 2026

HB 1004: Increasing the personal property tax exemption.

HB 1004 increases Washington State's personal property tax exemption from $15,000 to $50,000 for individual taxpayers. It directly affects residents owning personal property (like furniture, jewelry, or equipment) valued under $50,000, excluding private vehicles and mobile homes. To claim the exemption, taxpayers must attest under penalty of perjury that their total personal property value is below $50,000 and they are claiming only one exemption statewide. The bill amends existing tax code sections to reflect this change and requires county assessors to verify claims. The exemption would take effect January 1, 2026, contingent on voter approval of a related constitutional amendment.

Topics ✓ Budget & TaxesSupports Budget & TaxesIncreases tax exemption for personal property, reducing tax burden on middle/lower income residents owning qualifying property under $50k.90% confidence

Sub-Topics Property Tax Tax Incentives

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signed · Washington · House Mar 20, 2026

HB 1210: Concerning targeted urban area tax preferences.

HB 1210 modifies existing targeted urban area tax preferences, primarily to include "clean energy transformation businesses." The bill defines these businesses as those involved in nuclear operations, green or renewable hydrogen production equipment, or high-voltage energy storage equipment. It allows cities to grant these specific businesses up to two additional 24-month extensions to complete projects under the tax preferences, beyond the standard extension period. Additionally, the bill updates the requirements for receiving an exemption, emphasizing verification of community workforce agreements, post-construction family living wage jobs, and compliance with prevailing wage and apprentice standards during construction.

Topics ✓ Budget & TaxesSupports Budget & TaxesExpands tax incentives for clean energy businesses via extended tax preferences, directly modifying tax policy to promote targeted economic development.95% confidence ✓ EnergySupports EnergyBill explicitly includes clean energy businesses (nuclear, hydrogen, storage) in tax incentives and allows project extensions, directly promoting renewable energy infrastructure investment.95% confidence ✓ EnvironmentSupports EnvironmentBill incentivizes clean energy businesses (nuclear, green hydrogen, energy storage) via tax extensions, directly promoting environmental protection through clean energy development.90% confidence

Sub-Topics Business Taxes Tax Incentives Energy Storage Renewable Energy Transmission

in committee · Washington · House Jan 12, 2026

HB 1040: Concerning rental income received by people eligible for certain property tax exemption programs.

HB 1040 allows people eligible for Washington’s property tax exemption programs (for seniors or disabled residents) to exclude up to $6,000 annually in rental income from their primary residence when calculating income eligibility for the exemption. This applies only to long-term rentals (not short-term rentals like Airbnb, which must still be reported as taxable income). The bill amends existing tax code to include rental income as part of "combined disposable income" calculations, adjusting how income thresholds are applied. It directly affects low-income homeowners in qualifying exemption programs who rent out space in their primary home.

Topics ✓ Budget & TaxesSupports Budget & TaxesExcludes rental income from eligibility calculation for property tax exemptions, providing tax relief to seniors/disabled residents.90% confidence ✓ HousingSupports HousingExcludes rental income from tax eligibility calculations for seniors/disabled residents, strengthening housing affordability by preventing loss of property tax exemptions when earning rental income.92% confidence

Sub-Topics Property Tax Tax Incentives Property Taxes Renters

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in committee · Washington · Senate Jan 12, 2026

SB 5383: Providing a sales and use tax exemption for inputs required for salmon recovery projects.

SB 5383 exempts sales and use taxes on labor, materials, and equipment used in qualifying salmon recovery projects. It applies to sponsors (such as tribes, local governments, or nonprofits) receiving state funding for projects aimed at increasing salmon/steelhead stocks through habitat restoration, barrier removal, or hatchery improvements. To qualify, sponsors must obtain a department-issued exemption certificate and provide it to sellers before August 1, 2025. The exemption expires when the project is certified operationally complete, with sponsors required to pay any back taxes within 60 days of expiration. This policy directly reduces costs for entities undertaking state-funded salmon habitat restoration efforts.

Topics ✓ Budget & TaxesSupports Budget & TaxesExempts sales/use taxes for salmon recovery projects, reducing tax burden on qualifying sponsors and directing state funds toward habitat restoration and conservation programs.95% confidence ✓ EnvironmentSupports EnvironmentBill provides tax exemption for salmon habitat restoration, barrier removal, and hatchery improvements - directly advancing environmental conservation and species protection efforts.95% confidence

Sub-Topics Sales Tax Tax Incentives

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in committee · Washington · House Jan 12, 2026

HB 1019: Concerning tax incentives for farmers.

HB 1019 creates a 25% tax credit for Washington farmers purchasing eligible items like new equipment, seeds, and conservation infrastructure. To qualify, farmers must participate in a state conservation program or receive conservation grant funds from the Washington State Conservation Commission. The credit, which cannot exceed annual tax liability, can be carried forward for up to two years if unused. The tax incentive expires on January 1, 2036, and applies only to farmers meeting specific conservation program participation criteria.

Topics ✓ Budget & TaxesSupports Budget & TaxesProvides 25% tax credit to farmers for eligible purchases, reducing tax liability and supporting agricultural conservation programs within state fiscal framework.90% confidence ✓ EnvironmentSupports EnvironmentBill requires conservation participation for tax credit, directly incentivizing environmental conservation practices by farmers through tax incentives for conservation infrastructure.90% confidence

Sub-Topics Procurement Tax Credits Tax Incentives Conservation

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in committee · Washington · House Jan 12, 2026

HB 1995: Concerning tax preferences.

HB 1995 removes multiple existing tax exemptions and credits for specific industries across Washington State's tax code. It repeals provisions that previously exempted aluminum smelters, silicon smelters, semiconductor manufacturers, and certain research facilities from paying sales or use taxes on materials, energy, or equipment. The bill does not create new tax breaks but eliminates these targeted exemptions, affecting businesses in those sectors that currently benefit from them. This change applies to numerous specific statutes covering exemptions for energy use, manufacturing inputs, and facility operations. The summary focuses on the repeal of these provisions, not new policy changes.

Topics ✓ Budget & TaxesSupports Budget & TaxesRepeals industry tax exemptions, closing loopholes to increase state revenue and promote fiscal responsibility per bill summary.95% confidence

Sub-Topics Business Taxes Sales Tax Tax Incentives

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passed · Washington · Senate Jan 12, 2026

SB 5697: Providing a property tax exemption for property owned by a qualifying nonprofit organization and loaned, leased, or rented to and used by any government entity to provide character-building, benevolent, protective, or rehabilitative social services.

Senate Bill 5697 expands an existing property tax exemption for qualifying nonprofit organizations in Washington state. It allows these nonprofits to maintain their tax-exempt status even when their property is loaned, leased, or rented to government entities or other nonprofit organizations. This applies specifically when the property is used to provide character-building, benevolent, protective, or rehabilitative social services. The bill also clarifies that selling donated merchandise on such property is considered an exempt use if the proceeds further the organization's purposes, with these changes taking effect for taxes collected in 2026 and later.

Topics ✓ Budget & TaxesSupports Budget & TaxesBill provides property tax exemption for nonprofits, reducing tax burden on entities delivering social services, aligning with tax relief indicators under Budget & Taxes.95% confidence

Sub-Topics Property Tax Tax Incentives

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