6346-S.E AMH REEV TAYT 566

ESSB 6346 - H AMD TO H AMD (H-3793.3/26) 2609

NOT ADOPTED 03/09/2026

On page 69, after line 21 of the striking amendment, insert the following:

"NEW SECTION. Sec. A new section is added to chapter 82.08 RCW to read as follows:

(1) As a complement to the working families' tax credit in RCW 82.08.0206, a state child tax credit, funded by sales and use tax and imposed under this chapter and the income tax imposed pursuant to this act, is provided to eligible individuals beginning with tax year 2029. The credit is refundable and is calculated as provided in this section.

(2) For purposes of this section, the following definitions apply:

(a) “Eligible individual” means an individual who:

(i) Properly files a return under this chapter for the taxable year;

(ii) Is a Washington resident during the taxable year; and

(iii) Has paid either retail sales tax under this chapter or use tax under chapter 82.12 RCW, or both. There is a rebuttable presumption that a person paid either retail sales under this chapter or use tax under chapter 82.12 RCW, or both, if they were a Washington resident during the year for which the credit is claimed.

(b) “Qualifying child” has the same meaning as provided in Title 26 U.S.C. Sec. 24 of the internal revenue code.

(c) “Internal revenue code” means the United States internal revenue code of 1986, as amended, as of January 1, 2028, or such subsequent date as the department may provide by rule consistent with the purpose of this section.

(d) “Washington resident” has the same meaning as provided in this chapter.

(3)(a) Except as otherwise provided in this subsection, the credit amount for the prior taxable year is one thousand dollars for each qualifying child under the age of 17.

(b) The credit begins to phase out when Washington taxable income exceeds the self-sufficiency standard applicable to the taxpayer’s household size.

(c) The credit must be fully phased out at:
‎(i) $1,000,000 for single filers; and
‎(ii) $1,500,000 for married individuals filing jointly.

(d) The department shall establish uniform percentage reduction formulas by rule to ensure a gradual phase-out and to prevent benefit cliffs.

(4)(a) Beginning January 1, 2030, and annually thereafter, the credit amount must be adjusted for inflation.

(b) Inflation adjustments must be based upon changes in the consumer price index that are published by November 15th of the previous year for the most recent 12-month period.

(c) “Consumer price index” means the average consumer price index for the Seattle, Washington area for urban wage earners and clerical workers, all items, compiled by the bureau of labor statistics, United States department of labor.

(d) Adjusted amounts must be rounded to the nearest five dollars.

(5) The credit provided in this section is refundable. If the credit exceeds the tax otherwise due under this chapter, the excess must be refunded to the taxpayer.

(6) Application must be made in a form and manner determined by the department. The department may require documentation necessary to verify eligibility.

(7) Chapter 82.32 RCW applies to the administration of this section.

(8) If the department determines that a credit was improperly claimed, the department may assess the overpaid amount. Interest and penalties apply as provided in RCW 82.32.050 and 82.32.090. Fraudulent claims are subject to a penalty equal to fifty percent of the overpaid amount.

(9) The department may adopt rules necessary to implement this section."

Renumber the remaining sections consecutively and correct any internal references accordingly.

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