This bill reenacts and amends RCW 82.04.299 and amends RCW 28B.92.205 and RCW 28B.15.067 to impose a new workforce education investment surcharge on certain "select advanced computing businesses" in addition to existing business taxes. The surcharge applies to gross income taxed under RCW 82.04.290(2) and (4) for qualifying activities, is effective for business activity on or after April 1, 2020, is 1.22% through December 31, 2025, and rises to 7.5% beginning January 1, 2026 (with the higher rate applying to income taxed under RCW 82.04.290(2)). The surcharge must be reported and paid quarterly, the department may require disclosure of affiliated group membership and audit to determine liability, and if the department proves intentional nondisclosure to evade the surcharge it may assess a penalty equal to 50% of the total surcharge payable by the affiliated group for the calendar year (in lieu of the evasion penalty under RCW 82.32.090(7)). The bill defines covered and excluded entities, including definitions for "advanced computing," "affiliate," "affiliated group," and a "select advanced computing business" threshold of $25 billion worldwide gross revenue in the prior calendar year. It expressly excludes some businesses primarily engaged in commercial mobile service, certain wired telecommunications infrastructure providers, and certain financial institutions as defined by prior law. Specific exemptions from the surcharge are provided for hospitals as defined in RCW 70.41.020 and for provider clinics offering primary care, multispecialty and surgical services (including behavioral health) and certain affiliates; those exemptions do not extend to amounts received by other members of an affiliated group. Surcharge revenues are deposited into the workforce education investment account (RCW 43.79.195). The bill also amends financial aid and tuition provisions. Beginning in the 2026–27 academic year, Washington College Grant award amounts are restructured so students with family incomes at or below 100% of state median family income receive the maximum grant and students with incomes from 101% to 150% receive graded, prorated awards by income tier. Tuition operating fee rules are changed so OFM must calculate and transmit a maximum increase by October 1 each year; resident undergraduate tuition operating fees (excluding applied baccalaureate degrees) are reduced by 10% each academic year for 2027–28 through 2029–30, and beginning 2030–31 increases are limited to the average annual percentage growth in Washington’s median hourly wage calculated over the prior 14 years. The bill also requires that beginning fiscal year 2028, if qualified applicants exceed available enrollments by 100 in computer science and engineering programs at four-year state universities, a commensurate number of enrollments must be added and funded with surcharge revenues. The proposal makes several procedural changes and references many existing statutes, but some key details are not provided in the extracted text: the specific state department administering the surcharge is not named, the OFM method for calculating "the maximum increase in tuition operating fees" is not described, and the mechanism for calculating the "commensurate number" of additional computer science and engineering enrollments is not explained. Definitions and cross-referenced provisions in other cited statutes are not included in the provided facts.

Large, multinational companies whose affiliated groups include at least one advanced computing business and that had worldwide revenue of $25 billion or more last year will face a significant new tax cost and compliance burden. They will likely owe a surcharge for certain advanced computing activities stretching back to April 1, 2020 (charged at 1.22% through 2025) and a much higher ongoing rate beginning in 2026 (7.5% on specified activity), must report and pay quarterly, and can be audited or forced to disclose affiliated members; intentional nondisclosure can trigger a steep penalty equal to half the group’s surcharge for the year. Hospitals and certain provider clinics and their health-focused affiliates are carved out, but other members of an affiliated group can still be hit, so corporate tax planning, cash flow, and audit risk for affected firms will increase. The surcharge revenues will go into a workforce education investment account and are likely to expand financial aid and reduce costs for many Washington students: starting in 2026–27 the Washington College Grant will cover the maximum award for families at or below the state median income and provide stepped, prorated awards up to 150% of median income, while resident undergraduate tuition operating fees are set to fall by 10% each year from 2027–28 through 2029–30 and then grow only with a wage-based cap after 2030. State universities may also automatically add and fund additional computer science and engineering seats beginning in fiscal 2028 when demand exceeds capacity by 100 applicants. Important implementation details are missing here — the specific state department charged with administration is unnamed, the exact taxable base relies on other RCW provisions not included, and the formulas for OFM’s tuition cap and for how many additional enrollments will be added are not described in these excerpts.