The Washington State Employee Ownership Program ended on June 30, 2025. Tax credits and employee ownership conversions awarded through that date may continue to be applied until June 30, 2026.
The Washington State Department of Commerce is committed to the long-term vision of expanding employee ownership opportunities across the state. To that end, Commerce is preparing a Decision Package and Agency Request Legislation for consideration in the next legislative session to restore funding for program administration and continued commission support.
We are grateful to the many partners, stakeholders, and community members who continue to champion employee ownership as a pathway to shared prosperity in Washington.
Ongoing support
The Department of Commerce will administer the Washington Employee Ownership Program through June 30, 2026.
Program tax credits
The Business & Occupation (B&O) tax credit for eligible employee ownership conversions remains active for qualified businesses through June 30, 2025. Credits awarded by that date may continue to be applied through June 30, 2026.
Participants in the program can qualify for an occupation tax credit for costs related to converting a qualifying business to an employee ownership structure. The total amount of credits may not exceed $2 million per year and are available on a first-come, first-served basis. Unused credits may be carried over for up to 12 months from the end of the tax reporting period in which the credit was earned.
You can learn more by visiting the Washington Department of Revenue (DOR) website Tax Credits section. If you have further questions about the credit, please call the DOR Taxpayer Account Administration division at 360-705-6214.