Rep. Young bill to provide tax break to behavioral health organizations passes out of committee

Legislation introduced by Rep. Jesse Young to provide a business and occupation tax (B&O) deduction for behavioral health administrative services organizations was unanimously passed out of the House Finance Committee today.

House Bill 1296, would allow health or social welfare organizations to take a B&O tax deduction on amounts received as compensation for providing mental health services or substance use disorder treatment services under a government-funded program.

“There couldn't be a more opportune time or window for a bill like this to come out of the Legislature to help our behavioral health organizations,” said Rep. Young, R-Gig Harbor. “We know this is a proven economic tool that works, and to provide it now shows that we're being responsible to the needs of the health pandemic we have in front of us.”

Should House Bill 1296 become law, behavioral health administrative services organizations could take a B&O tax deduction on the money they receive from the state for the distribution to a health or social welfare organization that is also eligible for the deduction.

The bill now awaits a vote by the full Washington State House of Representatives.

The 2021 legislative session began Jan. 11 and is scheduled to run 105 consecutive days.

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Washington State House Republican Communications
houserepublicans.wa.gov