State Rep. Jesse Young speaks before the House Transportation Committee this month. (Rep. Jesse Young’s office photo)

State Rep. Jesse Young speaks before the House Transportation Committee this month. (Rep. Jesse Young’s office photo)

Young-sponsored bill to provide a tax break to behavioral health organizations

SB 1296 passes out of House committee

House Bill 1296, which would allow behavioral health or social welfare organizations to take a business and occupation tax deduction, was unanimously passed out of the state House Finance Committee on Feb. 4.

The bill was introduced by 26th Legislative District state Rep. Jesse Young, R-Gig Harbor. The legislation 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.

Should HB 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, Young’s office said in a news release.

“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,” Young said.

“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.”

The bill now awaits a vote by the full House.

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