Washington equitable access to credit act

From the 2024 DOR Tax Exemption Study

82.04.4499 - Washington equitable access to credit act Description A credit against B&O tax is allowed for amounts contributed to the equitable access to credit program. No business may claim more than $1 million in a calendar year and the credit cannot exceed the amount of B&O tax due. Total credits claimed in any calendar year may not exceed $8 million. Unclaimed credits may be carried forward for two years. This credit expires July 1, 2027. Purpose To make funds available to award grants to qualified lending institutions to provide access to credit for historically underserved communities. Taxpayer ($ in millions): savings FY 2024 FY 2025 FY 2026 FY 2027 State Taxes $8.000 $8.000 $8.000 $8.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Repeal of Repealing this credit would increase revenues. exemption Potential ($ in millions): revenue gains FY 2024 FY 2025 FY 2026 FY 2027 from full repeal State Taxes $0.000 $8.000 $8.000 $8.000 Local Taxes $0.000 $0.000 $0.000 $0.000 Assumptions - This repeal takes effect July 1, 2024, and impacts full year of collection in fiscal year 2025. - The annual $8 million cap is met each fiscal year. Data Sources - Department of Revenue, Excise tax data