wa-law.org > bill > 2025-26 > HB 2398 > Original Bill
Beginning January 1, 2027, a person is allowed a credit against the tax imposed in this chapter equal to 100 percent of the costs related to providing maritime trade educational assistance to employees of small businesses who are employed aboard or servicing United States flagged vessels.
The credit claimed may not exceed the tax that would otherwise be due under this chapter. Refunds may not be granted in the place of credits. Any amount of credit earned under this section not claimed by the taxpayer in one calendar year may be carried forward for five calendar years.
The total credit amount approved under this section may not exceed $20,000 for each person claiming the credit in a calendar year.
No application is necessary for the tax credit. The person must keep records necessary for the department to verify eligibility under this section.
To claim a credit under this section, a person must electronically file with the department all returns, forms, and other information the department requires in an electronic format as provided and approved by the department. Any return, form, or information required to be filed in electronic format under this section is not filed until received by the department in an electronic format. For purposes of this subsection, "returns" has the same meaning as "return" in RCW 82.32.050.
No person may claim a credit against taxes due under both this chapter and chapter 82.16 RCW for the same educational assistance costs.
The following definitions apply to this section:
"Educational assistance" means any payments from an employer directly to an educational institution on behalf of an employee for educational and training expenses for education or training in a maritime trade.
"Educational institution" means any university, college, community college, junior college, technical, vocational, or professional school, or approved noncampus-based apprenticeship program that participates in state financial aid programs administrated by the Washington student achievement council or approved United States department of labor apprenticeship programs, including maritime training providers holding active United States coast guard course approvals and regardless of participation in state financial aid programs, if the programs offered directly support the competencies, credentials, or endorsement required for maritime trades.
"Educational and training expenses" means tuition, books, on-campus lodging, simulator fees, personal protective equipment, tools and equipment needed for training including dividers, triangles, gloves, and boots for the employee relating to a transfer associate degree, applied bachelor's degree, registered apprenticeship, specific professional and technical associate degree, United States coast guard approved certificate program, or stackable credential in a maritime trade.
"Employee" means a full-time or part-time employee of the person claiming the credit in this section that is a student enrolled in an educational institution in Washington for a maritime trade and has filed an application for federal student aid, a Washington application for state financial aid, or is a participant in a union training trust.
"Maritime trade" means a full-time or part-time career in commercial dry cargo, liquid cargo, commercial or public passenger transportation, commercial fishing, marine research, marine engineering technology, marine deck technology, deep sea sailing, marine and boat construction, or the workboat industry. Maritime trade includes shoreside and underway jobs such as plumber and pipefitter, technician, boilermaker, painter, carpenter, state ferry worker, mariner, ordinary seaman, able-bodied seaman, licensed deck officer, wiper, oiler, refer technician, qualified member of an engine department, radio operator, marine engineer, United States coast guard approved instructor at a maritime institution, naval architect, metallurgist, and surveyor.
"Small business" means any Washington-based corporation, partnership, company cooperative, sole proprietorship, signatory to a jointly managed union-employer training trust, or other legal entity organized or operating for pecuniary or nonpecuniary gain employing 50 or fewer employees in the state of Washington.
The ability to earn credits under this section expires January 1, 2038.
This section expires January 1, 2039.
Beginning January 1, 2027, a person is allowed a credit against the tax imposed in this chapter equal to 100 percent of the costs related to providing maritime trade educational assistance to employees of small businesses who are employed aboard or servicing United States flagged vessels.
The credit claimed may not exceed the tax that would otherwise be due under this chapter. Refunds may not be granted in the place of credits. Any amount of credit earned under this section not claimed by the taxpayer in one calendar year may be carried forward for five calendar years.
The total credit amount approved under this section may not exceed $20,000 for each person claiming the credit in a calendar year.
No person may claim a credit against taxes due under both this chapter and chapter 82.04 RCW for the same educational assistance costs.
The definitions and requirements of section 1 of this act apply to this section.
The ability to earn credits under this section expires January 1, 2038.
This section expires January 1, 2039.
This section is the tax preference performance statement for the tax preference contained in sections 1 and 2, chapter . . ., Laws of 2026 (sections 1 and 2 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 provide tax relief for certain businesses or individuals, as indicated in RCW 82.32.808(2)(e).
It is the legislature's specific public policy objective to provide reduced tax liability for businesses that provide educational assistance for employees working aboard or servicing United States flagged vessels.
If a review finds that after the effective date of this section the number of businesses in the state that provide educational assistance for employees working aboard or servicing United States flagged vessels increases by five percent and enrollment in maritime trade programs at Washington state educational institutions increases by any amount, 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.