Pete Van Moorsil, JLARC staff, reported to the House Finance Committee on Jan. 14 that the B&O tax credit for customized workforce training—which reimburses 50% of training costs paid through the State Board for Community and Technical Colleges’ customized training program—met the Legislature’s stated threshold for continuation but experienced a sustained decline in use.

The preference is scheduled to expire July 1, 2026, and estimated beneficiary savings in the current biennium are about $34,000. JLARC found that use of the credit declined by 86% from its peak, paralleling a 76% decline in the underlying training program’s use between 2018 and 2023. Twenty-seven businesses used the program between 2018 and 2023 to provide 31 trainings; 24 loans were repaid and seven remained in active repayment as of early 2024. The statutory extension condition—a completion and repayment rate of at least 75%—was met.

JLARC noted program geography is concentrated: four colleges (in Clark, Pierce and Snohomish counties) conducted 81% of trainings, and nearly 85% of participating businesses were in King, Pierce, Snohomish and Thurston counties; about 80% were manufacturers. JLARC recommended the Legislature extend the preference and the State Board examine ways to increase program use across more counties and industries, possibly supplemented by additional funding for the revolving loan fund; the citizen commission suggested the Legislature consider adding money to that fund. The State Board concurred and is exploring broader outreach options.

JLARC presented these recommendations for legislative consideration; committee members received the report and had no immediate votes on the matter.