2024 Tax Preference Review:
Customized Workforce Training
September 2023
Eric Whitaker, Team Lead
Stephanie Hoffman, Project
Coordinator | Eric Thomas, Legislative
Auditor
Businesses that provide customized workforce training to their employees may be eligible for a B&O tax credit
Businesses that contract with the State Board for Community and Technical Colleges (SBCTC) to provide employee training may take a B&O tax credit valued at 50% of the training costs. Under the contract, the SBCTC pays the full cost of training from a revolving loan fund. After training is complete, the business repays the SBCTC.
Preference intended to provide training assistance that retains and expands existing Washington businesses
JLARC first reviewed this preference in 2020 (report). The Legislative Auditor concluded that the preference was not meeting the stated intent of attracting new businesses to Washington.
In 2021, the Legislature changed the preference’s intent. The preference now focuses on retaining and expanding existing businesses in Washington.
The preference is set to expire on July 1, 2026. However, the Legislature stated that it intends to extend the expiration date if 75% of participating businesses complete the training and repay the SBCTC.
This study will address the following questions
Study questions define the scope of the audit, based on the study mandate. They reflect preliminary outreach, research, and analysis of potential racial equity considerations per RCW 44.28.076.
- To what extent have Washington businesses continued to use the customized
workforce training credit since JLARC’s review in 2020?
- How many and what types of businesses have applied for the credit? Where are beneficiary businesses located?
- How many employees have been trained, and what types of training have been provided using the program?
- How long have beneficiary businesses been operating in Washington and have they expanded since completing the training?
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What are the racial and ethnic characteristics of those who use the credit and the employees who are trained?
- What percentage of businesses have completed the training and repaid the customized employment training program loan from the SBCTC?
What's next
- Preliminary Report: July 2024
- Proposed Final Report: December 2024
Study team
Eric Whitaker, Team Lead, (360) 786-5618
Dana Lynn, Research Analyst, (360) 786-5177
Stephanie Hoffman, Project
Coordinator, (360) 786-5297
Eric Thomas, Legislative Auditor,
(360) 786-5182
Washington Joint Legislative Audit & Review Committee   
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