The bill introduces a new tax credit for qualified farmers in Washington, effective January 1, 2026. Farmers can receive a credit equal to 25 percent of their expenditures from the previous year on new equipment, infrastructure, seeds, seedlings, spores, animal feed, and amendments. 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 success in this area, the legislature may consider extending the expiration date of the tax preference, which is set to expire on January 1, 2036. The joint legislative audit and review committee is authorized to use state-collected data for evaluating the effectiveness of the tax preference.