The proposed bill introduces a new tax credit for qualified farmers in Washington, effective January 1, 2026. This credit allows farmers to claim 25 percent of their expenditures from the previous year on new equipment, infrastructure, seeds, animal feed, and other related items against their tax liabilities. To qualify, farmers must either receive grant funds from the Washington state conservation commission or participate in a conservation program. The credit is limited to the amount of tax due, can be carried over for up to two succeeding calendar years, and does not require an application, although farmers must maintain records to verify eligibility.

Additionally, the bill includes a performance statement that outlines the legislature's intent to encourage farmer participation in conservation programs through this tax incentive. It emphasizes the goal of increasing participation and states that if a review shows positive results in farmer engagement with conservation efforts, the legislature may consider extending the expiration date of the tax preference, which is set for January 1, 2036. The joint legislative audit and review committee is authorized to use state-collected data for evaluating the effectiveness of this tax incentive.