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 amounts paid to the federal authority or the state commission in the previous year, with specific application and record-keeping requirements outlined.

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 to the federal authority. The bill includes provisions that exempt certain existing laws from applying to the new tax credit and specifies effective dates for different sections, with some taking effect immediately for public safety and others starting in 2026.