Bill
SB 6250
Expands Washington's Working Families Tax Credit to include property tax embedded in rent, adds a renter-specific credit starting 2025 for those renting 183+ days.
SB 6250 — Working Families Tax Credit expansion to reflect property tax burden in rent (Washington)
Overview
- Purpose: Increase the working families’ tax credit (WFTC) to account for property taxes embedded in residential rents. The bill reenacts and amends existing state law to expand and adjust the WFTC and creates an additional rent-related credit component starting in 2025.
- Status: First reading, referred to Ways & Means (introduced January 16, 2024; 68th Legislature, 2024 Regular Session).
- Primary objective: Provide greater tax relief for low-income households by incorporating the economic impact of local property taxes into rental costs through a larger WFTC and an additional renter-specific credit.
Key provisions and changes
- Reenactment and amendment of RCW 82.08.0206 (and related 2023 statutes) to redefine and administer the Working Families Tax Credit.
- Eligible recipients: Low-income individuals qualifying for the federal Earned Income Tax Credit (EITC) under 26 U.S.C. Sec. 32, with Washington residency and filing requirements. The bill preserves eligibility criteria related to federal ITINs, filing status, and residency, with specific conditions for alternative ID/filing scenarios.
- Base WFTC structure (for prior year refunds):
- Refund amounts (calendar year 2023 and thereafter):
- $300 (no qualifying children)
- $600 (one qualifying child)
- $900 (two qualifying children)
- $1,200 (three or more qualifying children)
- Phase-out reductions by income start points and percentages vary by household size (no children, 1 child, 2 children, 3+ children), with minimum credits maintained at a floor (minimums and dollar rounding rules specified, including inflation adjustments).
- Refunds are adjusted annually for inflation using the Seattle CPI for urban wage earners and clerical workers, rounded to the nearest $5.
- If calculated refund is positive but less than $50, the minimum is $50.
- The “maximum qualifying income” concept and federal phase-out interactions are retained.
- Additional rent-related credit (starting 2025):
- An extra $300 refund for eligible persons who leased or rented their primary residence in Washington for at least 183 days in the claim year.
- The 183-day period can be aggregated across multiple leases if moving; the individual must be a signatory on the leases used to meet the 183-day requirement.
- Eligibility for the additional credit requires meeting the base WFTC refund requirements and applying for the additional amount through a specified department process.
- Inflation adjustments apply to the additional credit starting in 2026, with amounts rounded to the nearest $5.
- The additional credit is reduced, and its eligibility phase-out adjusted, consistent with the base credit’s structure and income thresholds.
Who is affected
- Low-income Washington residents eligible for the federal EITC (and who file WA state tax returns under the WFTC framework).
- Renters who can meet the 183-day occupancy requirement for the additional renter-specific credit, including those who moved within the year (as long as they sign the leases tied to the 183-day calculation).
Procedural/timeline notes
- Effective treatment: Base WFTC calculations apply for calendar year 2023 and onward; annual inflation adjustments begin as specified.
- Additional renter credit begins in calendar year 2025, with inflation adjustments starting 2026.
- The bill’s provisions would be implemented through reenactment and amendment of existing RCW sections and the creation of new sections.
Next steps
- As a Ways & Means bill, the proposal would move through committee scrutiny, fiscal analyses, and potential amendments before any floor vote. Stay tuned for committee reports, fiscal notes, and potential changes to eligibility or dollar amounts.
Compiled from official sources — confirm details with the bill’s official record.
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