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 new sections to chapters 67.16 and 82.04 of the Revised Code of Washington (RCW). The commission is authorized to impose reasonable fees to cover federal compliance costs, with revenues deposited into a newly created Washington equine industry federal regulatory account. Additionally, the bill provides a tax credit for licensed race meet operators based on payments made to the federal authority or the state commission in the previous year, with specific application and record-keeping requirements outlined.

Furthermore, the bill mandates annual transfers from the state general fund to the newly established regulatory account, capped at $1.5 million per fiscal year, with adjustments for inflation. The funds in this account can only be used for paying fees associated with federal compliance. The bill also specifies that certain existing RCW provisions do not apply to the new tax credit section and declares an emergency for the immediate implementation of specific sections, with the tax credit taking effect on January 1, 2026.