HB 1883
In CommitteeHouse
Employment training program
Concerning the Washington customized employment training program.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill extends the customized employment training program tax credit—which gives businesses a credit equal to 50% of their payments into the training fund—until July 1, 2031, and sets a final expiration of July 1, 2033. It also updates reporting requirements and adds a formal review process to decide whether the credit should be extended further based on program performance.
- Extends the expiration of the customized employment training program tax credit from July 1, 2026 to July 1, 2031.
- Allows businesses to claim a tax credit equal to 50% of their payments to the employment training finance account, with unused credits carryable to future years.
- Requires businesses that fail to meet program requirements to repay the credit amount plus interest to the state.
- Delays the deadline for the Higher Education Coordinating Board to report program outcomes to the legislature from December 31, 2024 to December 31, 2028, and updates the report content to focus on county-level participation and outreach efforts.
- Includes a tax preference performance statement requiring review by the legislature to determine if 75% of participating businesses complete training and repay training allowances—triggering potential future extensions.
- Sets a final expiration date for the tax credit of July 1, 2033, regardless of prior extensions.
Who is affected
- Businesses participating in the Washington customized employment training program — Businesses that participate in the Washington customized employment training program can claim a tax credit equal to 50% of their payments to the employment training finance account, helping offset training costs.
- Workers trained through the program — Workers who receive employer-specific training through the program may benefit from improved skills, higher wages, and better job retention after training.
- Qualified training institutions (e.g., community colleges) — Community colleges and other qualified training institutions that provide training under the program may see increased demand for customized workforce development services.
- State agencies (e.g., Higher Education Coordinating Board, Department of Revenue) — State government agencies like the Higher Education Coordinating Board and Department of Revenue will have added responsibilities for managing reporting and tax credit processing.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (4)
The 50% tax credit helps offset training costs for participating businesses, potentially encouraging more firms to invest in workforce development—especially those in sectors with high turnover or skill mismatches—leading to better job stability and wages for workers.
Business & EmploymentPeopleRef: Sec. 2(1), RCW 82.04.449(1)By extending the credit through 2031 and requiring repayment only if training goals are unmet, the bill strengthens accountability and reduces risk for employers seeking to train workers in high-demand fields—potentially increasing job placement and retention for low- and middle-income workers.
Business & EmploymentPeopleRef: Sec. 2(1), RCW 82.04.449(1)The bill supports community colleges and other qualified training institutions by increasing demand for customized workforce development services, potentially stabilizing funding for vocational and technical education programs across the state.
EducationPeopleRef: Sec. 2(1), RCW 82.04.449(1)The updated reporting requirements—focusing on county-level participation and outreach—may improve equity monitoring and help identify underserved regions or industries, supporting more targeted workforce development investments.
EducationPeopleRef: Sec. 2(3), RCW 82.04.449(3)
Potential Concerns (3)
The bill extends a 50% tax credit on payments to the employment training finance account, reducing state revenue unless offset by repayments or economic activity. While 75% of participants met repayment thresholds in 2021, the extension to 2031 increases the duration of revenue loss, potentially straining state budgets for core services.
FinancialRef: Sec. 2(1), RCW 82.04.449(1)The credit applies only to businesses participating in the Washington customized employment training program, which requires upfront payments to the training fund and compliance with program requirements. This creates a barrier to entry for small or cash-strapped firms, limiting access to the benefit for many small businesses and sole proprietors who may not have the liquidity to make initial payments.
Business & EmploymentRef: Sec. 2(1), RCW 82.04.449(1)The bill delays and narrows reporting requirements for program outcomes—replacing detailed metrics (e.g., wage growth, retention, credential attainment) with county-level participation and outreach metrics—reducing transparency and accountability for how public funds are used to support workforce development.
Local GovernmentRef: Sec. 2(3), RCW 82.04.449(3)
Who Is Most Affected
Participating businesses—especially mid-sized firms in manufacturing, logistics, and tech—benefit from reduced training costs and improved worker retention. However, small businesses without upfront capital to pay into the training fund may not qualify, limiting access.
Workers trained through the program gain industry-specific skills and improved job stability, with strong evidence of wage gains and retention in prior program years. However, benefits accrue disproportionately to those who complete training and remain employed—potentially excluding part-time, gig, or short-term workers.
Community colleges and regional technical colleges are likely to see increased demand for customized training contracts, potentially stabilizing funding and expanding workforce development capacity. However, institutions in rural or low-population counties may lack capacity to scale participation without additional support.
State agencies gain expanded authority to collect and report on program outcomes, but also face increased administrative burden. The bill delays reporting deadlines and simplifies metrics, potentially reducing oversight capacity despite added responsibilities.
Local governments may benefit indirectly from stronger regional economies and higher wage bases, but lose no direct revenue or authority under this bill. The county-level reporting requirement may improve local planning capacity but does not allocate new funding.