PRIA Logo™
WashingtonHB 12102025-2026 Regular SessionHouseWALLET

Concerning targeted urban area tax preferences.

Sponsored By: Stephanie Barnard (Republican)

Became Law

Your PRIA Score

Score Hidden

Personalized for You

How does this bill affect your finances?

Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.

Free to start

Bill Overview

Analyzed Economic Effects

4 provisions identified: 1 benefits, 0 costs, 3 mixed.

Higher wage floor and job reporting

The law sets a “family living wage job” at $23.00 per hour or more with health care, based on 2,080 hours a year. That $23 rate adjusts each year for inflation, and cities can set a higher local level. Owners applying for the tax break must state and later report how many new family living wage jobs the project creates. Clean‑energy facilities that need a federal certification must report post‑construction prevailing‑ or family‑wage jobs. This raises pay floors for new on‑site jobs and adds owner reporting duties.

Deadlines, filings, and appeals for tax break

After construction and a certificate of occupancy, the owner must file a description and a statement that the work qualifies for the partial exemption. If the project is a clean‑energy facility needing federal certification, the filing must verify required commitments and include the signed community workforce or project labor agreement. The city reviews within 30 days, then must file the tax‑exemption certificate with the county assessor within the next 30 days. Projects must finish within 3 years; the city can extend up to 24 months for delays beyond the owner’s control when the owner acted in good faith. Clean‑energy projects needing federal certification can get up to two more 24‑month extensions. The city can deny the exemption if the work is late without an approved extension, the build or job/labor terms do not match commitments, or the property does not qualify. Owners can appeal a denial to superior court within 30 days; cities may also offer an administrative appeal. The law also clarifies that RCW 82.32.805 and 82.32.808 do not apply to this act.

Which industrial and clean‑energy sites qualify

The law spells out who can get the partial property tax break. A facility must be at least 10,000 square feet with $800,000 or more in improvements, and used for manufacturing or certain transportation uses. A city may limit the break to manufacturing uses. A “targeted area” is undeveloped, industrial‑zoned land that is inside or next to an innovation zone, foreign‑trade zone, or EB‑5 center. A “clean energy transformation business” makes products that help lower Washington’s carbon emissions. Qualifying sites and businesses can use the targeted urban area exemption under state law.

Stronger labor checks on clean‑energy builds

For clean‑energy facilities that need certification by a federal regulatory commission, the city checks labor standards before granting the tax break. The city consults with the Department of Labor & Industries about contractor wage‑and‑hour compliance, paying at least the state prevailing wage during construction, and using registered apprentices. These checks help protect worker pay and training, and add compliance steps for project owners.

Free Policy Watch

You just read the policy. Now see what it costs you.

Pick a topic. PRIA runs your household against live legislation and sends you a free personalized readout.

Pick a topic to get started

My TaxesMy HealthMy BudgetMy MoneyMy Freedom
Or tell us something more specific

Sponsors & Cosponsors

Sponsor

  • Stephanie Barnard

    Republican • House

Cosponsors

  • Larry Springer

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 189 • No: 49

Senate vote • 3/6/2026

3rd Reading & Final Passage

Yes: 28 • No: 20 • Other: 1

House vote • 2/13/2026

3rd Reading & Final Passage

Yes: 80 • No: 14 • Other: 4

House vote • 3/11/2025

3rd Reading & Final Passage

Yes: 81 • No: 15 • Other: 2

Actions Timeline

  1. Effective date 6/11/2026.

    3/20/2026House

  2. Chapter 120, 2026 Laws.

    3/20/2026House

  3. Governor signed.

    3/20/2026legislature

  4. Delivered to Governor.

    3/12/2026legislature

  5. President signed.

    3/11/2026legislature

  6. Speaker signed.

    3/11/2026legislature

  7. Third reading, passed; yeas, 28; nays, 20; absent, 0; excused, 1.

    3/6/2026House

  8. Rules suspended. Placed on Third Reading.

    3/6/2026House

  9. Placed on second reading by Rules Committee.

    3/3/2026House

  10. Passed to Rules Committee for second reading.

    3/2/2026House

  11. Minority; without recommendation.

    3/2/2026House

  12. Minority; do not pass.

    3/2/2026House

  13. WM - Majority; do pass.

    3/2/2026House

  14. First reading, referred to Ways & Means.

    2/17/2026House

  15. Third reading, passed; yeas, 80; nays, 14; absent, 0; excused, 4.

    2/13/2026House

  16. Rules suspended. Placed on Third Reading.

    2/13/2026House

  17. Floor amendment(s) adopted.

    2/13/2026House

  18. Rules Committee relieved of further consideration. Placed on third reading.

    2/11/2026House

  19. By resolution, reintroduced and retained in present status.

    1/12/2026House

  20. By resolution, returned to House Rules Committee for third reading.

    4/27/2025House

  21. Placed on second reading by Rules Committee.

    4/7/2025House

  22. Passed to Rules Committee for second reading.

    4/4/2025House

  23. Minority; without recommendation.

    4/3/2025House

  24. Minority; do not pass.

    4/3/2025House

  25. WM - Majority; do pass.

    4/3/2025House

Bill Text

Related Bills

Back to State Legislation

Take It Personal

Get Your Personalized Policy View

Take the PRIA Score to see how policy affects your household, then upgrade to PRIA Full Coverage for year-round monitoring.

Already have an account? Sign in