Washington · Training · WA-CWT-001
Customized Employee Workforce Training Credit
Publication revised September 24, 2026. Sourcebook page 271.
Credit amount / calculation
business and occupation tax credit tied to eligible training repayments.
Business fit and eligible activity
Employers repaying approved customized-training costs can receive a business and occupation tax credit. Hiring, wages or qualifying training; where the program also requires investment, satisfy both tests.
Eligibility and practical use
This credit is aimed at the cost of changing the workforce along with the equipment. It can fit a mill installing scanners, controls, a new planer line, kiln controls, or other technology that requires incumbent employees to learn a materially different process. Routine safety meetings and ordinary orientation should not be treated as qualifying retraining without support in the program rules.
Illustrative business benefit
Use-of-credit illustration, not an estimated award: assume the agency or completed tax form establishes a $1,000 credit for the qualifying activity described above. If sufficient eligible tax is due, a $1,000 credit available for current use reduces that tax by $1,000. If annual limits allow only $600, that is this year's saving; the other $400 survives only if the carryforward or transfer rules permit. Obtain the actual program calculation before estimating a project benefit.
Timing / first action
Check application or certification requirements before incurring the qualifying expense or beginning the qualifying activity.
Official sources
- Washington Department of Revenue — Credits (dor.wa.gov)
Related programs
B&O Tax Credit for New Employees in Manufacturing/R&D in Rural Counties
Per-new-employee business and occupation tax credit
Directly relevant to qualifying manufacturing facilities in rural counties; timely application after hiring is required.
Clean Electricity Investment Credit (Internal Revenue Code §48E)
Generally
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Clean Electricity Production Credit (Internal Revenue Code §45Y)
Production-based
Alternative to the investment credit for owners/operators of qualifying clean-electricity facilities; potentially relevant to qualifying on-site generation.
Clean Fuel Production Credit (Internal Revenue Code §45Z)
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