JLARC presented its review of a Business & Occupation tax credit that offsets 50 percent of employer costs for customized workforce training delivered through the State Board for Community and Technical Colleges’ program to the House Finance Committee on Jan. 14.

The preference — scheduled to expire July 1, 2026 — reduces training costs by half and is tied to a revolving loan fund that the State Board uses to pay for initial training. JLARC reported the revolving loan fund reached a maximum around $330,000, and that businesses repay a share of the loan (25 percent up front, the rest over 18 months). The Department of Revenue issues credits worth 50 percent of each payment, which may be carried forward until used.

JLARC said the legislature’s threshold for extension — that at least 75 percent of businesses complete training and repay loans — was met between 2018 and 2023 (27 businesses used the program; 24 loans repaid, 7 were in active repayment as of early 2024). However, use has declined: credit claims dropped 86 percent from peak use and program usage fell 76 percent over the same period. Use is also geographically concentrated in Clark, Pierce and Snohomish counties and among manufacturers.

JLARC recommended extending the preference, that the State Board take steps to broaden program and preference use across more counties and industries and that the State Board report progress to the Legislature. The citizen commission suggested adding money to the revolving loan fund to expand capacity; the State Board concurred with JLARC’s recommendations and said it was exploring outreach strategies.