WA HB1016

Employers may claim a tax credit equal to 20% of wages and benefits paid to veterans or spouses of active duty military members, up to $3,000 maximum per qualified employee, beginning January 1, 2026

Qualified employees must work full-time (at least 35 hours per week) for a minimum of two consecutive full calendar quarters before the credit can be claimed

Total credits under both the business and occupation tax (Chapter 82.04 RCW) and public utility tax (Chapter 82.16 RCW) are capped at $5,000,000 per fiscal year, distributed on a first-in-time basis

Employers who discharge a qualified employee are barred from claiming new credits for one year, unless the discharge was for documented misconduct or criminal conviction

Credits can be earned through January 1, 2036, and claimed through January 1, 2037, after which the provisions expire