Clarifies the scope of the investment income business and occupation tax deduction in Washington.

The bill amends the definition of investment income for business and occupation tax purposes in Washington. It specifies that amounts derived from investments, dividends or distributions from the capital account by a parent from its subsidiary entities, and interest on loans between subsidiary entities and a parent entity or between subsidiaries of a common parent entity are deductible. It also clarifies that certain amounts received by a banking, lending, or security business are not deductible.

Clarifies the scope of the investment income business and occupation tax deduction in Washington.

The bill amends the definition of investment income for business and occupation tax purposes in Washington. It specifies that amounts derived from investments, dividends or distributions from the capital account by a parent from its subsidiary entities, and interest on loans between subsidiary entities and a parent entity or between subsidiaries of a common parent entity are deductible. It also clarifies that certain amounts received by a banking, lending, or security business are not deductible.