The bill aims to eliminate the Washington employee ownership program while amending several sections of the Revised Code of Washington (RCW) related to employee ownership structures. Key amendments include the introduction of a tax credit for businesses converting to worker-owned cooperatives, employee ownership trusts, or employee stock ownership plans, effective July 1, 2024. The credit allows for up to 50% of conversion costs, with specific caps depending on the type of ownership structure. Additionally, the bill establishes a limit of $2,000,000 on the total amount of credits authorized annually and outlines the process for claiming these credits, including documentation requirements and expiration dates for unused credits.

Furthermore, the bill modifies the structure and oversight of the Washington employee ownership program and commission, emphasizing the need for appropriated funds for their operations. It includes provisions for creating a network of support for businesses transitioning to employee ownership, establishing a revolving loan program, and requiring annual reports to the legislature on program activities. The bill also sets expiration dates for various sections, with the employee ownership program and commission set to expire on June 30, 2030. Overall, the legislation seeks to streamline and redefine the support for employee ownership in Washington while phasing out the existing program.

Statutes affected:
Substitute Bill: 82.04.4488
Bill as Passed Legislature: 82.04.4488, 43.330.590, 43.330.592, 43.330.595
Session Law: 82.04.4488, 43.330.590, 43.330.592, 43.330.595