WA HB2398

Small businesses with 50 or fewer employees may claim a 100% tax credit against Business & Occupation (B&O) and public utility taxes for maritime trade educational assistance provided to employees working aboard or servicing U.S. flagged vessels, beginning January 1, 2027.

Maximum credit is $20,000 per business per calendar year, with unused credits carried forward up to five years; no refunds are issued, and credits cannot exceed tax owed.

Covered expenses include tuition, books, lodging, simulator fees, protective equipment, and tools paid directly to educational institutions for maritime training programs, apprenticeships, and U.S. Coast Guard-approved certificate programs.

Qualifying maritime careers include commercial cargo, passenger transportation, commercial fishing, marine engineering, boat construction, state ferry work, and various shoreside and underway positions such as deck officers, engineers, and welders.

The tax credit program expires January 1, 2038 for earning credits (full expiration January 1, 2039), with legislative review based on whether participating businesses increase by 5% and maritime program enrollment rises.