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The Washington Pro-Worker AI Workforce Act (WA-AI-Workforce)

Washington state companion to AI Workforce. Because Washington levies no income tax, incentives are structured as a B&O tax credit and Workforce Board grants. Builds on RCW Title 23B and 25 (business entities), RCW Ch. 43.330 (Commerce), and financial-sandbox authorities.

THE WASHINGTON PRO-WORKER AI WORKFORCE ACT (WA-AI-WORKFORCE)

Vehicle: State passage. Washington Legislature, regular session. Primary referral to House / Senate Postsecondary Education and Workforce / Finance.

SECTION 1. SHORT TITLE

This Act may be cited as the “Washington Pro-Worker AI Workforce Act (WA-AI-Workforce).”

SECTION 2. LEGISLATIVE FINDINGS AND INTENT

The Legislature finds that Washington business entities are governed by RCW Title 23B (Business Corporation Act) and Title 25 (LLCs); that RCW Title 82 imposes the Business and Occupation Tax; that the Department of Commerce operates under RCW Ch. 43.330; that Washington levies no individual or general corporate income tax; and that RCW Ch. 49.46 and Ch. 49.60 protections apply. This Act extends these frameworks.

TITLE I — DEFINITIONS & COORDINATION WITH WASHINGTON LAW

Sec. 101. Definitions

  1. (a) “Qualified WA AI Workforce Training” means training toward a WARMC or Federal FRAC in AI fields.
  2. (b) “Washington Innovation Sandbox” means a regulatory sandbox under Title III.
  3. (c) “Qualified small business” has the meaning given in RCW Title 23B or Title 25.

Sec. 102. Coordination with Existing Washington Law

  1. (a) Consistent with:
  • RCW Title 23B; Title 25.
  • RCW Title 82 (B&O tax).
  • RCW Ch. 43.330 (Commerce).

TITLE II — WASHINGTON AI WORKFORCE TRAINING INCENTIVE (No-Income-Tax Rewire)

Sec. 201. B&O Credit / Workforce Board Grant

  1. (a) Given that Washington levies no individual or corporate income tax:
  • (i) A credit against the Business and Occupation Tax under RCW Title 82 for qualified AI workforce training expenditures, and/or
  • (ii) A Workforce Board grant under RCW Ch. 28C.18 for qualified training, subject to appropriations.
  1. (b) Credit or grant availability is conditioned on compliance with RCW Ch. 49.46 and Ch. 49.60; priority to employers with a labor-management partnership.
  2. (c) Coordinated with federal IRC Sec. 45BB; aggregate cap.
  3. (d) Credit or grant equals 30% of eligible expenditures capped at $3,000 per employee / $150,000 per employer annually.
  4. (e) Department of Revenue and Workforce Board jointly administer.

TITLE III — WASHINGTON INNOVATION SANDBOX

Sec. 301. Establishment of the Washington Innovation Sandbox

  1. (a) A Washington Innovation Sandbox is established within the Department of Commerce, covering occupational-licensure activities under RCW Title 18 and financial-product innovation under RCW Title 31.
  2. (b) Twenty-four-month terms; renewable.

Sec. 302. Scope

  1. (a) Covers state-licensed activities and financial activities to the extent not preempted.

TITLE IV — SMALL-BUSINESS FORMATION

Sec. 401. Expedited Formation Pathway

  1. (a) The Secretary of State shall implement an expedited formation pathway for RCW Title 23B and Title 25 entities within 24 hours.

Sec. 402. Single-Portal Licensing

  1. (a) The Washington Business Licensing Service shall operate a single-portal licensing system for state-level occupational licenses under RCW Title 18.

TITLE V — IMPLEMENTATION & GENERAL PROVISIONS

Sec. 501. Severability

If any provision is held invalid, the invalidity shall not affect the remainder.

Sec. 502. Effective Date

This Act shall take effect on the July 1 following enactment.

Canonical federal version: AI Workforce. Other Washington bills: WA-ACSA, WA-MEWRA, WA-GT&P.