The bill establishes an equine industry tax credit and allows the Washington horse racing commission to impose fees to ensure compliance with the federal Horseracing Integrity and Safety Act of 2020. It introduces new sections to chapters 67.16 and 82.04 of the Revised Code of Washington (RCW). Specifically, it allows licensed race meet operators to claim a tax credit for amounts paid to the federal authority or the state commission in the previous fiscal year, with certain conditions regarding electronic filing and record-keeping. Additionally, the bill mandates the transfer of up to $1.5 million annually from the general fund to a newly created Washington equine industry federal regulatory account, which will be used exclusively for federal fees related to horseracing.

Furthermore, the bill creates the Washington equine industry federal regulatory account in the state treasury, stipulating that all funds transferred to this account must be appropriated for the payment of federal fees. It also specifies that certain existing RCW provisions do not apply to the new tax credit section. The act is deemed necessary for the immediate preservation of public peace, health, or safety, and is set to take effect on July 1, 2025.