This 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 several new sections to the Revised Code of Washington (RCW), including provisions for the commission to impose reasonable fees, which will be deposited into a newly created Washington equine industry federal regulatory account. The bill also allows licensed race meet operators to claim a tax credit for payments made to the federal authority or the state commission, with specific requirements for claiming the credit and maintaining records.

Additionally, the bill mandates annual transfers from the state general fund to the equine industry federal regulatory account, capped at $1.5 million per fiscal year, based on sales and use taxes collected by class 1 racing associations. The maximum transfer amount will be reviewed biennially and adjusted for inflation. The funds in the regulatory account can only be used for paying fees charged by the federal authority. The bill includes provisions for immediate effect for certain sections, with the tax credit provisions taking effect on January 1, 2026.