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WA HB2292

Bill

Status

Introduced

1/12/2026

Primary Sponsor

April Berg

Click for details

Origin

House of Representatives

2025-2026 Regular Session

AI Summary

  • Amends Washington's capital gains tax (RCW 82.87.020) to include gains from the sale of Internal Revenue Code Section 1202 qualified small business stock in the state's adjusted capital gain calculation
  • Eliminates the federal exclusion benefit for Section 1202 stock, meaning these gains would be subject to Washington's capital gains tax even though they may be partially or fully excluded at the federal level
  • Section 1202 stock refers to shares in qualified small businesses that meet specific federal requirements, which normally allows taxpayers to exclude up to 100% of gains from federal taxation
  • Applies to capital gains earned on or after January 1, 2026
  • Sponsored by Representatives Berg and Thai, prefiled January 7, 2026 for the 69th Legislature's 2026 Regular Session

Legislative Description

Concerning taxation of a long-term capital gain of a section 1202 small business stock.

Last Action

Public hearing in the House Committee on Finance at 8:00 AM.

1/27/2026

Committee Referrals

Finance1/12/2026

Full Bill Text

No bill text available