WA HB2081

Increases standard Business and Occupation (B&O) tax rates from approximately 0.484% to 0.5% for most business categories including extractors, manufacturers, retailers, and wholesalers, effective January 1, 2027

Creates a new 0.5% temporary surcharge on companies with Washington taxable income exceeding $250,000,000 annually, effective January 1, 2026 through December 31, 2029, with exemptions for manufacturers, farmers, and certain fuel transactions

Increases the additional tax on specified financial institutions (banks with $1 billion+ net income) from 1.2% to 1.5%, effective October 1, 2025

Raises the advanced computing surcharge rate from 1.22% to 7.5% and increases the annual cap from $9 million to $75 million per affiliated group, effective January 1, 2026, targeting large tech companies with $25 billion+ worldwide revenue

Clarifies the B&O tax deduction for investment income by establishing a bright-line rule that investments must generate less than 5% of total gross income to qualify as "incidental to the main purpose" of a business