This bill aims to eliminate the Washington employee ownership program by repealing several related statutes, specifically RCW 43.330.590, RCW 43.330.592, and RCW 43.330.595. In addition, it amends RCW 82.04.4488 to provide a tax credit for businesses converting to worker-owned cooperatives, employee ownership trusts, or employee stock ownership plans. The amended section allows for a credit of up to 50% of conversion costs, with specific caps depending on the type of ownership structure being adopted. The total amount of credits authorized under this section is limited to $2,000,000 annually, and any unused credits can be carried over for a limited time.

Furthermore, the bill establishes that any remaining funds in the abolished employee ownership revolving loan program account will be transferred to the state general fund. The new provisions will take effect on June 30, 2025, and the tax credits can be earned for tax reporting periods starting on or before June 30, 2025, with the program set to expire on July 1, 2026. The bill emphasizes the immediate necessity for these changes to preserve public peace, health, or safety, and to support state government functions.

Statutes affected:
Substitute Bill: 82.04.4488