WA HB1564

Establishes a 100% tax credit against Business and Occupation (B&O) and Public Utility taxes for employers who provide child care assistance to employees, effective January 1, 2026

Defines "child care assistance" as employer-provided salary/wage portions designated for child care expenses (including tuition) and costs for operating in-house child care facilities

Credits cannot exceed taxes owed, no refunds are available, and unused credits may be carried forward for one calendar year only

Businesses cannot claim the credit under both B&O and Public Utility taxes for the same child care costs; applications must be filed electronically and the department must rule within 60 days

Credits may be earned until January 1, 2037, with the program expiring January 1, 2038; the legislature intends to extend the program if it increases businesses providing child care assistance by 15%