2024 Tax Legislation

Below are summaries of tax-related bills passed by the legislature and signed into law by Gov. Inslee during the 2024 legislative session.

Also, see the department’s complete Summary of 2024 Legislation.
 

Affordable housing – leasehold excise tax exemption

This bill creates a leasehold excise tax exemption for all leasehold interests in public lands when used for the placement of affordable housing. This program is administered by the Department of Natural Resources.

Effective June 6, 2024 (ESHB 2003, Chapter 59, Laws of 2024)

Special notice coming soon.
 

Affordable housing – sales/use tax deferral

This bill allows local jurisdictions to create a sales/use tax deferral program for converting existing buildings into affordable housing.

Effective June 6, 2024 (ESSSB 6175, Chapter 332, Laws of 2024)

Special notice coming soon.
 

Carbon allowances

This bill creates business and occupation (B&O) tax and public utility tax (PUT) exemptions for amounts that certain entities receive from transactions involving Climate Commitment Act (CCA) credits, allowances, or price ceiling units.

Effective April 1, 2024 (EHB 2199, Chapter 115, Laws of 2024)

Special notice coming soon.
 

Child care industry

This bill expands the B&O tax exemption for certain child care services provided by businesses primarily engaged in providing child care.

Effective October 1, 2024 (ESSB 6038, Chapter 195, Laws of 2024)

Special notice coming soon.
 

Commute trip reduction credit

This bill extends the time employers can earn and claim commute trip reduction credit.

Effective March 28, 2024 (ESHB 2134, Chapter 310, Laws of 2024)

Special notice coming soon.
 

Disabled veterans’ assistance

This bill provides B&O and retail sales/use tax exemptions for amounts received from sales on a military reservation by a nonprofit that operates an adaptive recreation and rehabilitation facility that services disabled veterans and members of the armed forces.

Effective October 1, 2024 (ESHB 1862, Chapter 141, Laws of 2024)
 

Farmers – sales/use tax remittance

The bill provides a limited sales and use tax exemption for goods and services purchased by an eligible farmer.

The exemption is in the form of a remittance (refund).

Effective July 1, 2024 (SEHB 1757, Chapter 222, Laws of 2024)

Special notice coming soon.
 

Farmers – hazardous substance tax exemption

This bill extends an existing hazardous substance tax exemption for any substance solely used by a farmer or certified applicator as an agricultural crop protection product that is warehoused in or transported to or from Washington.

Effective June 6, 2024 (HB 2454, Chapter 241, Laws of 2024)

Special notice coming soon.
 

Main street tax credit

The bill allows Main Street Programs to receive additional contributions and to access unused statewide credits on October 1 each year.

Effective June 6, 2024 (ESHB 2306, Chapter 93, Laws of 2024)

Special notice coming soon.
 

Mercury containing lights

This bill modifies the B&O tax exemption related to the environmental handling charges on mercury-containing lights.

Effective June 6, 2024 (ESSHB 1185, Chapter 339, Laws of 2024)

Special notice coming soon.
 

Semiconductor industry

This bill extends existing incentives for the semiconductor industry. It also reinstates other incentives if certain conditions are met.

Effective March 26, 2024 (ESHB 2482, Chapter 261, Laws of 2024)

Special notice coming soon.
 

SR 520 Corridor Improvements

This bill allows the Department of Transportation to apply for a retail sales/use tax deferral on construction of the SR 520 corridor improvements – west end project.

Effective March 26, 2024 (SSB 6316, Chapter 281, Laws of 2024)