The bill aims to increase the working families' tax credit in Washington State to better reflect the economic impact of property taxes included in rental amounts for residential tenants. It amends RCW 82.08.0206 to provide a refundable tax credit for eligible low-income individuals starting from calendar years after January 1, 2022. The bill specifies the refund amounts based on the number of qualifying children, with additional provisions for individuals who lease or rent their primary residence for at least 183 days. Notably, beginning in calendar year 2026, an additional $300 credit will be available for eligible renters, with adjustments for inflation starting January 1, 2027.

The legislation also includes several new sections and provisions, such as a tax preference performance statement and stipulations regarding the effective date and funding requirements. It establishes that refunds cannot be provided for any period before January 1, 2025, and outlines conditions under which the act will be null and void if specific funding is not appropriated by June 30, 2025. Furthermore, the act is set to take effect on January 1, 2026, contingent upon the approval of a proposed amendment to the state Constitution.

Statutes affected:
Original Bill: 82.08.0206
Substitute Bill: 82.08.0206