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Bill

HB 1564

Supporting employers providing child care assistance to employees by establishing a business and occupation and public utility tax credit.

2025-2026 Regular Session Introduced by Peter Abbarno and 10 co-sponsors

Washington HB 1564 creates business tax credits for employers providing employee child care assistance to expand workforce participation support.

By resolution, reintroduced and retained in present status.
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WeVote Research Nonpartisan
Bill Summary · HB 1564

Legislative bill overview

HB 1564 creates a business and occupation (B&O) tax credit and public utility tax credit for Washington employers that provide child care assistance to their employees. The bill aims to incentivize private sector investment in child care support through tax benefits, reducing the financial burden on employers who offer these benefits.

Why is this important

Child care costs are a significant barrier to workforce participation, particularly for working parents. By offering tax credits, the state attempts to encourage more employers to provide child care assistance—either through direct subsidies, on-site facilities, or dependent care accounts—without direct state spending. This could expand access to affordable child care while keeping workers in the labor force.

Potential points of contention

  • Tax revenue impact: B&O and utility tax credits reduce state revenue; opponents may question whether the benefit justifies the fiscal cost, particularly if uptake is limited to larger employers who can afford such programs
  • Equity concerns: Tax credits may primarily benefit higher-income workers at companies large enough to offer child care benefits, potentially widening disparities for lower-income families without employer support
  • Effectiveness uncertainty: There's limited evidence that tax credits alone drive employer adoption of child care assistance; the credit structure, thresholds, and qualifying expenses will determine real-world impact
  • Administrative complexity: Defining eligible child care assistance and verifying compliance adds regulatory burden for both employers and the state

Compiled from official sources — confirm details with the bill’s official record.

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