Commute trip reduction

AN ACT Relating to commute trip reduction tax credit; amending 1
RCW 82.70.020, 82.70.040, and 82.70.900; creating a new section; 2
providing an effective date; and declaring an emergency.3
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:4
Sec. 1. RCW 82.70.020 and 2024 c 310 s 608 are each amended to 5
read as follows: 6
(1) Employers in this state who are taxable under chapter 82.04 7
or 82.16 RCW and provide financial incentives to their own or other 8
employees for ride sharing, for using public transportation, for 9
using car sharing, or for using nonmotorized commuting before January 10
1, ((2025)) 2035, are allowed a credit against taxes payable under 11
chapters 82.04 and 82.16 RCW for amounts paid to or on behalf of 12
employees for ride sharing in vehicles carrying two or more persons, 13
for using public transportation, for using car sharing, or for using 14
nonmotorized commuting, not to exceed (($60)) $100 per employee per 15
fiscal year. 16
(2) Property managers who are taxable under chapter 82.04 or 17
82.16 RCW and provide financial incentives to persons employed at a 18
worksite in this state managed by the property manager for ride 19
sharing, for using public transportation, for using car sharing, or 20
for using nonmotorized commuting before January 1, ((2024)) 2035, are 21
H-0089.1
HOUSE BILL 1043
State of Washington 69th Legislature 2025 Regular Session
By Representatives Wylie, Doglio, Fey, Ramel, Shavers, Fosse,
Salahuddin, Reeves, and Hill
Prefiled 12/11/24. Read first time 01/13/25. Referred to Committee
on Finance.
p. 1 HB 1043
allowed a credit against taxes payable under chapters 82.04 and 82.16 1
RCW for amounts paid to or on behalf of these persons for ride 2
sharing in vehicles carrying two or more persons, for using public 3
transportation, for using car sharing, or for using nonmotorized 4
commuting, not to exceed (($60)) $100 per person per fiscal year.5
(3) The credit under this section is equal to the amount paid to 6
or on behalf of each employee multiplied by 50 percent, but may not 7
exceed (($60)) $100 per employee per fiscal year. No refunds may be 8
granted for credits under this section. 9
(4) A person may not receive credit under this section for 10
amounts paid to or on behalf of the same employee under both chapters 11
82.04 and 82.16 RCW. 12
(5) A person may not take a credit under this section for amounts 13
claimed for credit by other persons. 14
Sec. 2. RCW 82.70.040 and 2024 c 310 s 609 are each amended to 15
read as follows: 16
(1)(a) The department must keep a running total of all credits 17
allowed under RCW 82.70.020 during each fiscal year. The department 18
may not allow any credits that would cause the total amount allowed 19
to exceed (($2,750,000)) $4,300,000 in any fiscal year.20
(b) If the total amount of credit applied for by all applicants 21
in any year exceeds the limit in this subsection, the department must 22
ratably reduce the amount of credit allowed for all applicants so 23
that the limit in this subsection is not exceeded. If a credit is 24
reduced under this subsection, the amount of the reduction may not be 25
carried forward and claimed in subsequent fiscal years.26
(2)(a) Tax credits under RCW 82.70.020 may not be claimed in 27
excess of the amount of tax otherwise due under chapter 82.04 or 28
82.16 RCW. 29
(b) Through June 30, 2005, a person with taxes equal to or in 30
excess of the credit under RCW 82.70.020, and therefore not subject 31
to the limitation in (a) of this subsection, may elect to defer tax 32
credits for a period of not more than three years after the year in 33
which the credits accrue. For credits approved by the department 34
through June 30, 2015, the approved credit may be carried forward and 35
used for tax reporting periods through December 31, 2016. Credits 36
approved after June 30, 2015, must be used for tax reporting periods 37
within the calendar year for which they are approved by the 38
department and may not be carried forward to subsequent tax reporting 39
p. 2 HB 1043
periods. Credits carried forward as authorized by this subsection are 1
subject to the limitation in subsection (1)(a) of this section for 2
the fiscal year for which the credits were originally approved.3
(3) No person may be approved for tax credits under RCW 82.70.020 4
in excess of (($100,000)) $50,000 in any fiscal year. This limitation 5
does not apply to credits carried forward from prior years under 6
subsection (2)(b) of this section. 7
(4) No person may claim tax credits after June 30, ((2025)) 2035.8
Sec. 3. RCW 82.70.900 and 2024 c 310 s 610 are each amended to 9
read as follows: 10
This chapter expires July 1, ((2025)) 2035. 11
NEW SECTION. Sec. 4. RCW 82.32.808 does not apply to this act.12
NEW SECTION. Sec. 5. This act is necessary for the immediate 13
preservation of the public peace, health, or safety, or support of 14
the state government and its existing public institutions, and takes 15
effect July 1, 2025.16
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p. 3 HB 1043