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HB 2089

Supporting wildfire mitigation by modifying RCW 82.04.29005, concerning taxes on loan interest.

2025-2026 Regular Session Introduced by Liz Berry and 15 co-sponsors

HB 2089 adjusts Washington's loan interest tax treatment to fund or support wildfire mitigation, though specific mechanisms require bill text review.

Effective date 7/1/2026.
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WeVote Research Nonpartisan
Bill Summary · HB 2089

Legislative bill overview

HB 2089 modifies Washington's tax code (RCW 82.04.29005) to adjust how loan interest is taxed, with the stated purpose of supporting wildfire mitigation efforts. The bill appears to create a tax mechanism or exemption related to loan interest that would fund or incentivize wildfire prevention and response activities in Washington state.

Why is this important

Wildfires pose significant threats to Washington communities, infrastructure, and public health, making mitigation funding a substantive policy priority. Tax policy changes can either generate revenue for mitigation programs or provide incentives for private investment in fire prevention, with different economic implications for lenders, borrowers, and state budgets.

Potential points of contention

  • Fiscal impact uncertainty: Without seeing the bill text, it's unclear whether this creates new revenue for wildfire programs or reduces tax collections, affecting the state budget and which programs might face cuts
  • Loan market effects: Modifying interest tax treatment could affect borrowing costs, availability of credit, or competitiveness of Washington's financial sector depending on whether exemptions or new taxes are imposed
  • Nexus between tax policy and wildfire mitigation: The connection between loan interest taxation and wildfire mitigation needs clarification—whether this funds programs directly, incentivizes specific behavior, or represents general revenue allocation

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

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