This 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 based on the number of qualifying children, with additional provisions for individuals who lease or rent their primary residence for at least 183 days. Starting in calendar year 2026, an additional $300 refund will be available for eligible renters, with adjustments for inflation beginning January 1, 2027.

The bill also includes various administrative provisions, such as application processes, eligibility verification, and privacy protections for applicants. It establishes that refunds cannot be provided for any period before January 1, 2025, and outlines the department's authority to assess overpayments and penalties for fraudulent claims. Additionally, it clarifies that the tax preference performance statement from a previous law applies to this expansion of the tax credit. Overall, the bill seeks to enhance financial support for low-income families in Washington by adjusting the working families' tax credit to account for housing costs.

Statutes affected:
Original Bill: 82.08.0206