The bill aims to increase the working families' tax credit in Washington State to better reflect the economic impact of property taxes on rental amounts charged to 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 for eligible persons based on the number of qualifying children, with amounts set at $300 for individuals with no qualifying children, up to $1,200 for those with three or more. Additionally, starting in calendar year 2026, an extra $300 refund will be available for eligible individuals who have leased or rented their primary residence for at least 183 days during the year.

The bill also includes provisions for adjusting refund amounts for inflation and outlines the application process for individuals seeking the credit. It establishes that refunds cannot be provided for any period before January 1, 2025, and specifies that if funding for the act is not provided by June 30, 2025, the act will be null and void. Furthermore, the act is set to take effect on January 1, 2026, contingent upon the approval of a proposed amendment to the state Constitution by voters.

Statutes affected:
Original Bill: 82.08.0206
Substitute Bill: 82.08.0206