This bill mandates Washington state's participation in the federal tax credit program for contributions made by individuals to scholarship granting organizations, as established by H.R. 1 (P.L. 119-21). The legislation emphasizes the importance of school choice for parents and directs the director of the department of revenue to designate and annually renew the state's participation in this program. The director is also responsible for ensuring compliance with participation obligations and providing timely notifications to relevant federal and state officials.

Additionally, the bill introduces a new section to chapter 82.01 RCW, outlining the responsibilities of the director of revenue regarding notifications to federal entities about Washington's participation in the tax credit program. The initial notification is required by April 1, 2026, with annual renewals thereafter. The bill also includes provisions to ensure that any conflicting parts with federal requirements will be inoperative only to the extent of the conflict, while maintaining the overall effectiveness of the act. The legislation is deemed necessary for the immediate preservation of public peace, health, or safety, and is set to take effect immediately.