This section is the tax preference performance statement for the tax preference contained in section 3, chapter . . ., Laws of 2021 (section 3 of this act). This performance statement is only intended to be used for subsequent evaluation of the tax preference. It is not intended to create a private right of action by any party or to be used to determine eligibility for preferential tax treatment.
The legislature categorizes this tax preference as one intended to accomplish a general purpose, to provide customized workforce development and skill development training that enhance worker skill sets.
It is the legislature's specific public policy objective to provide customized training assistance that retains and expands existing businesses in Washington.
If a review finds that 75 percent of participating businesses complete the training and repay the customized employment training program loan, then the legislature intends to extend the expiration date of this tax preference.
In order to obtain the data necessary to perform the review in subsection (4) of this section, the joint legislative audit and review committee may refer to any data collected by the state.
This section modifies existing section 82.04.449. Here is the modified chapter for context.
In computing the tax imposed under this chapter, a credit is allowed for participants in the Washington customized employment training program created in RCW 28B.67.020. The credit allowed under this section is equal to 50 percent of the value of a participant's payments to the employment training finance account created in RCW 28B.67.030. If a participant in the program does not meet the requirements of RCW 28B.67.020(2)(b)(ii), the participant must remit to the department the value of any credits taken plus interest. The credit earned by a participant in one calendar year may be carried over to be credited against taxes incurred in a subsequent calendar year. No credit may be allowed for repayment of training allowances received from the Washington customized employment training program on or after July 1, 2026.
A person claiming the credit provided in this section must file a complete annual tax performance report with the department under RCW 82.32.534.
By December 31, 2024, the college board, as defined in RCW 28B.50.030, shall submit to the higher education committees of the legislature a report on:
Industries supported by the program;
The geographical location of companies utilizing the program;
The number of employees trained;
The types of occupations included in the training;
The wages of employees trained prior to program entrance and the wage growth one year after training;
Retention of employees for a period of one year after training; and
Credential attainment of employees upon completion of the training, if applicable.