The proposed bill introduces tax incentives for employers who hire veterans and military spouses by adding new sections to chapters 82.04 and 82.16 of the Revised Code of Washington (RCW). Starting January 1, 2026, employers can claim a tax credit equal to 20% of wages and benefits paid to qualified employees, capped at $3,000 per employee. To qualify, employees must be employed for at least two consecutive full calendar quarters, and the total credits allowed across both sections cannot exceed $5,000,000 in any fiscal year. If a qualified employee is discharged, the employer cannot claim a new credit for one year unless the discharge was for misconduct or a felony conviction. The credits can be carried over until used, but no refunds will be granted.

Additionally, the bill includes a performance statement to evaluate the effectiveness of these tax preferences in reducing unemployment among veterans and military spouses. The legislature aims to create jobs for this demographic by providing tax relief to employers, thereby incentivizing them to hire veterans and military spouses. The credits can be claimed until January 1, 2036, with an expiration date for the program set for January 1, 2037. The bill emphasizes the importance of tracking the impact of these incentives on veteran employment rates, with a potential recommendation for extension if a significant decrease in unemployment is observed.