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WashingtonHB 20472025-2026 Regular SessionHouseWALLET

Eliminating the Washington employee ownership program.

Sponsored By: Adison Richards (Democratic)

Became Law

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 1 costs, 0 mixed.

Tax break for employee ownership conversions

Washington businesses that convert to a worker cooperative, an employee ownership trust, or an ESOP get a tax credit. The credit equals 50% of eligible conversion costs, up to $25,000 for co-ops or trusts, or $100,000 for ESOPs. All credits statewide are capped at $2 million per year on a first-in-time basis; once the cap is reached, no more credits for that year. Businesses must be approved by the department. Credits are nonrefundable, cannot exceed tax due, can be carried forward, must be claimed within 12 months, and records must be kept for five years. The credit starts July 1, 2024, can be earned only for tax periods starting on or before June 30, 2025, and cannot be claimed for periods starting on or after July 1, 2026.

Employee ownership help only if funded

The state’s employee ownership program and its commission operate only when the legislature budgets money for them. Any revolving loan program runs only if the state wins needed federal funds. The department’s annual report is also subject to funding. These sections expire June 30, 2030.

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Sponsors & Cosponsors

Sponsor

  • Adison Richards

    Democratic • House

Cosponsors

  • Lisa Parshley

    Democratic • House

  • Mia Gregerson

    Democratic • House

  • Nicole Macri

    Democratic • House

Roll Call Votes

All Roll Calls

Yes: 140 • No: 102

House vote • 4/26/2025

Final Passage as Amended by the Senate

Yes: 58 • No: 40

Senate vote • 4/26/2025

3rd Reading & Final Passage as Amended by the Senate

Yes: 25 • No: 23

House vote • 4/17/2025

3rd Reading & Final Passage

Yes: 57 • No: 39 • Other: 2

Actions Timeline

  1. Effective date 7/27/2025.

    5/19/2025House

  2. Chapter 366, 2025 Laws.

    5/19/2025House

  3. Governor signed.

    5/19/2025legislature

  4. Delivered to Governor.

    4/27/2025legislature

  5. President signed.

    4/27/2025legislature

  6. Speaker signed.

    4/27/2025legislature

  7. Third reading, passed; yeas, 25; nays, 23; absent, 0; excused, 0.

    4/26/2025House

  8. Rules suspended. Placed on Third Reading.

    4/26/2025House

  9. Committee amendment(s) adopted with no other amendments.

    4/26/2025House

  10. Passed final passage; yeas, 58; nays, 40; absent, 0; excused, 0.

    4/26/2025House

  11. House concurred in Senate amendments.

    4/26/2025House

  12. Minority; without recommendation.

    4/25/2025House

  13. Minority; do not pass.

    4/25/2025House

  14. WM - Majority; do pass with amendment(s).

    4/25/2025House

  15. Passed to Rules Committee for second reading.

    4/25/2025House

  16. Placed on second reading by Rules Committee.

    4/25/2025House

  17. First reading, referred to Ways & Means.

    4/19/2025House

  18. Third reading, passed; yeas, 57; nays, 39; absent, 0; excused, 2.

    4/17/2025House

  19. Rules suspended. Placed on Third Reading.

    4/17/2025House

  20. 1st substitute bill substituted.

    4/17/2025House

  21. Rules Committee relieved of further consideration. Placed on second reading.

    4/16/2025House

  22. Referred to Rules 2 Review.

    4/8/2025House

  23. Minority; without recommendation.

    4/5/2025House

  24. APP - Majority; 1st substitute bill be substituted, do pass.

    4/5/2025House

  25. Minority; do not pass.

    4/5/2025House

Bill Text

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