SB6229 modifies Washington's tax code to align state capital gains tax with federal tax rules for certain long-term capital gains.

SB6229 amends Washington's tax code to redefine "adjusted capital gain" for state tax purposes. It incorporates federal net long-term capital gains, including gains from the sale of section 1202 qualified small business stock, while excluding certain gains and losses not subject to federal tax. This change aims to synchronize state and federal tax treatment for specific long-term capital gains, effective for gains earned on or after January 1, 2026.

SB6229 modifies Washington's tax code to align state capital gains tax with federal tax rules for certain long-term capital gains.

SB6229 amends Washington's tax code to redefine "adjusted capital gain" for state tax purposes. It incorporates federal net long-term capital gains, including gains from the sale of section 1202 qualified small business stock, while excluding certain gains and losses not subject to federal tax. This change aims to synchronize state and federal tax treatment for specific long-term capital gains, effective for gains earned on or after January 1, 2026.