Last Friday, Life Science Washington was proud to present before the House Technology, Economic Development & Veterans Committee, alongside Cyrus Biotechnology CEO Lucas Nivon, to share the story of Washington’s thriving life sciences industry—and the urgent need to sustain its momentum.
We emphasized that our state didn’t become a top 10 life science hub by accident. It took decades of research, public investment, and entrepreneurial grit. Today, the industry supports more than 112,000 jobs and contributes nearly $39B to the state economy. The reality is that the state is just now reaping the rewards of investments made a decade ago. Many of the state’s most effective programs—like the Life Sciences Discovery Fund and R&D tax incentives—have expired, and we’re falling behind states like Massachusetts and North Carolina that are doubling down on their support.
Cyrus Biotechnology CEO Lucas Nivon made the case for why careful consideration of attempts to regulate artificial intelligence at the state level is critical, especially in the rapidly evolving space where biotech meets artificial intelligence. Lucas explained how biotech AI is fundamentally different from the consumer AI tools making headlines. Unlike generative models that produce text or images instantly, biotech AI is a tool for research and discovery that must be tested in a lab and go through rigorous FDA approval. Washington is a global leader in this area, thanks in part to pioneers like Cyrus and the Institute for Protein Design, and we have the opportunity to stay ahead—but only if regulations are centered in allowing innovation to prosper.
We delivered a strong message to lawmakers that the life sciences industry is an economic engine and a public good. With strategic reinvestment, we can grow jobs, attract capital, and deliver life-saving innovation for decades to come.
Click Here to watch the work session.
LSW Urges Lawmakers to Consider Life Science Startups in Tax Legislation
We also met with key lawmakers in Olympia to discuss proposed tax measures, particularly focusing on Senate Bill 5796, which introduces a 5% payroll tax on wages exceeding the Social Security threshold of $176,100 for companies with payroll expenses over $7M. While proponents have characterized it as a tax on the state’s largest corporations, LSW highlighted how the measure would also disproportionately impact life science startups—many of which have no revenue, rely heavily on competitive grants and venture capital. While we emphasized the broader industry’s opposition, these startups, some with as few as 40 employees, could face significant financial strain, potentially hindering innovation and growth within Washington’s life sciences sector.
LSW emphasized the need for lawmakers to consider the unique financial structures of these companies to prevent unintended consequences on this vital industry. At this point, it remains unclear whether the bill will advance, but we are urging lawmakers to make changes to the bill to protect Washington’s life science industry.
Read more from Microsoft’s Brad Smith on the broader impact of the payroll tax proposal here:
https://www.geekwire.com/2025/microsoft-president-says-new-proposed-business-taxes-in-washington-state-will-weaken-tech-sector/
Revenue Bill Hearings this Week
On Monday, the Senate Ways & Means Committee will hear its five revenue bills SB 5797 (financial intangibles tax), SB 5796 (large employer payroll tax), SB 5798 (property tax lid lift), SB 5794 (eliminating obsolete and ineffective tax preferences), and SB 5795 (sales tax reduction). The House’s three revenue bills, HB 2046 (financial intangibles tax), HB 2049 (property tax lid lift), and HB 2045 (large business B&O tax surcharge) will be heard on Thursday. We also may see Governor Ferguson’s revenue preferences next week.
See our explanation of the bills here:
https://lifesciencewa.org/reports/policy-blog-march-25-2025-budgets-and-taxes-week-in-the-legislature/
Life Science Washington Policy Priorities
This week, legislative committees will vote on bills that have already passed the opposite legislative chamber, including:
- HB 1493, right to repair, is scheduled for executive session in the Senate Environment, Energy and Technology Committee on Tuesday. There will be an amendment to clarify the exemption for medical devices.
- SB 5455, making technical corrections to the Andy Hill Cancer Fund, should be passed out of the House Health Care Committee on Tuesday.
- SB 5594, relating to biosimilar medicines, will also be acted on in the same meeting.
Have questions, comments, or concerns about these bills or any other pending legislation? Get in touch with LSW’s Public Affairs Manager, Curtis Knapp.