Maritime trade ed. assist.

AN ACT Relating to establishing business and occupation and 1
public utility tax credits for small business employers providing 2
maritime trade educational assistance to employees who are employed 3
aboard or servicing United States flagged vessels; adding a new 4
section to chapter 82.04 RCW; adding a new section to chapter 82.16 5
RCW; creating a new section; and providing expiration dates.6
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:7
NEW SECTION. Sec. 1. A new section is added to chapter 82.04 8
RCW to read as follows: 9
(1) Beginning January 1, 2027, a person is allowed a credit 10
against the tax imposed in this chapter equal to 100 percent of the 11
costs related to providing maritime trade educational assistance to 12
employees of small businesses who are employed aboard or servicing 13
United States flagged vessels. 14
(2) The credit claimed may not exceed the tax that would 15
otherwise be due under this chapter. Refunds may not be granted in 16
the place of credits. Any amount of credit earned under this section 17
not claimed by the taxpayer in one calendar year may be carried 18
forward for five calendar years. 19
H-2796.2
HOUSE BILL 2398
State of Washington 69th Legislature 2026 Regular Session
By Representatives Richards, Low, Valdez, Shavers, Nance, and Reed
Read first time 01/13/26. Referred to Committee on Finance.
p. 1 HB 2398
(3) The total credit amount approved under this section may not 1
exceed $20,000 for each person claiming the credit in a calendar 2
year. 3
(4) No application is necessary for the tax credit. The person 4
must keep records necessary for the department to verify eligibility 5
under this section. 6
(5) To claim a credit under this section, a person must 7
electronically file with the department all returns, forms, and other 8
information the department requires in an electronic format as 9
provided and approved by the department. Any return, form, or 10
information required to be filed in electronic format under this 11
section is not filed until received by the department in an 12
electronic format. For purposes of this subsection, "returns" has the 13
same meaning as "return" in RCW 82.32.050. 14
(6) No person may claim a credit against taxes due under both 15
this chapter and chapter 82.16 RCW for the same educational 16
assistance costs. 17
(7) The following definitions apply to this section:18
(a) "Educational assistance" means any payments from an employer 19
directly to an educational institution on behalf of an employee for 20
educational and training expenses for education or training in a 21
maritime trade. 22
(b) "Educational institution" means any university, college, 23
community college, junior college, technical, vocational, or 24
professional school, or approved noncampus-based apprenticeship 25
program that participates in state financial aid programs 26
administrated by the Washington student achievement council or 27
approved United States department of labor apprenticeship programs, 28
including maritime training providers holding active United States 29
coast guard course approvals and regardless of participation in state 30
financial aid programs, if the programs offered directly support the 31
competencies, credentials, or endorsement required for maritime 32
trades. 33
(c) "Educational and training expenses" means tuition, books, on-34
campus lodging, simulator fees, personal protective equipment, tools 35
and equipment needed for training including dividers, triangles, 36
gloves, and boots for the employee relating to a transfer associate 37
degree, applied bachelor's degree, registered apprenticeship, 38
specific professional and technical associate degree, United States 39
p. 2 HB 2398
coast guard approved certificate program, or stackable credential in 1
a maritime trade. 2
(d) "Employee" means a full-time or part-time employee of the 3
person claiming the credit in this section that is a student enrolled 4
in an educational institution in Washington for a maritime trade and 5
has filed an application for federal student aid, a Washington 6
application for state financial aid, or is a participant in a union 7
training trust. 8
(e) "Maritime trade" means a full-time or part-time career in 9
commercial dry cargo, liquid cargo, commercial or public passenger 10
transportation, commercial fishing, marine research, marine 11
engineering technology, marine deck technology, deep sea sailing, 12
marine and boat construction, or the workboat industry. Maritime 13
trade includes shoreside and underway jobs such as plumber and 14
pipefitter, technician, boilermaker, painter, carpenter, state ferry 15
worker, mariner, ordinary seaman, able-bodied seaman, licensed deck 16
officer, wiper, oiler, refer technician, qualified member of an 17
engine department, radio operator, marine engineer, United States 18
coast guard approved instructor at a maritime institution, naval 19
architect, metallurgist, and surveyor. 20
(f) "Small business" means any Washington-based corporation, 21
partnership, company cooperative, sole proprietorship, signatory to a 22
jointly managed union-employer training trust, or other legal entity 23
organized or operating for pecuniary or nonpecuniary gain employing 24
50 or fewer employees in the state of Washington. 25
(8) The ability to earn credits under this section expires 26
January 1, 2038. 27
(9) This section expires January 1, 2039. 28
NEW SECTION. Sec. 2. A new section is added to chapter 82.16 29
RCW to read as follows: 30
(1) Beginning January 1, 2027, a person is allowed a credit 31
against the tax imposed in this chapter equal to 100 percent of the 32
costs related to providing maritime trade educational assistance to 33
employees of small businesses who are employed aboard or servicing 34
United States flagged vessels. 35
(2) The credit claimed may not exceed the tax that would 36
otherwise be due under this chapter. Refunds may not be granted in 37
the place of credits. Any amount of credit earned under this section 38
p. 3 HB 2398
not claimed by the taxpayer in one calendar year may be carried 1
forward for five calendar years. 2
(3) The total credit amount approved under this section may not 3
exceed $20,000 for each person claiming the credit in a calendar 4
year. 5
(4) No person may claim a credit against taxes due under both 6
this chapter and chapter 82.04 RCW for the same educational 7
assistance costs. 8
(5) The definitions and requirements of section 1 of this act 9
apply to this section. 10
(6) The ability to earn credits under this section expires 11
January 1, 2038. 12
(7) This section expires January 1, 2039. 13
NEW SECTION. Sec. 3. (1) This section is the tax preference 14
performance statement for the tax preference contained in sections 1 15
and 2, chapter . . ., Laws of 2026 (sections 1 and 2 of this act). 16
This performance statement is only intended to be used for subsequent 17
evaluation of the tax preference. It is not intended to create a 18
private right of action by any party or to be used to determine 19
eligibility for preferential tax treatment.20
(2) The legislature categorizes this tax preference as one 21
intended to provide tax relief for certain businesses or individuals, 22
as indicated in RCW 82.32.808(2)(e). 23
(3) It is the legislature's specific public policy objective to 24
provide reduced tax liability for businesses that provide educational 25
assistance for employees working aboard or servicing United States 26
flagged vessels. 27
(4) If a review finds that after the effective date of this 28
section the number of businesses in the state that provide 29
educational assistance for employees working aboard or servicing 30
United States flagged vessels increases by five percent and 31
enrollment in maritime trade programs at Washington state educational 32
institutions increases by any amount, then the legislature intends to 33
extend the expiration date of this tax preference.34
(5) In order to obtain the data necessary to perform the review 35
in subsection (4) of this section, the joint legislative audit and 36
review committee may refer to any data collected by the state.37
--- END ---
p. 4 HB 2398