6346-S.E AMH REEV TAYT 567

ESSB 6346 - H AMD TO H AMD (H-3793.3/26) 2611

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 and dependent care credit funded by sales and use tax 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 calculated as provided in this section.

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

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

(i) Claims a federal child and dependent care credit for the same taxable year;

(ii) Properly files a return under this chapter for the taxable year;
‎(iii) Is a Washington resident during the taxable year; and

(iv) 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) “Federal child and dependent care credit” has the same meaning as provided in Title 26 U.S.C. Sec. 21 of the internal revenue code.

(3)(a) The credit equals twenty percent of the federal child and dependent care credit claimed by the taxpayer for the same taxable year.

(b) The credit must begin to phase out when Washington taxable income exceeds the self-sufficiency standard and must be fully phased out at the income thresholds provided in subsection (3)(c) of this section.

(c) Full phase-out occurs at:
‎(i) $1,000,000 for single filers; and
‎(ii) $1,500,000 for married individuals filing jointly.

(d) The department shall establish uniform phase-out formulas by rule.

(4) The credit is refundable.

(5) Beginning January 1, 2030, and annually thereafter, any maximum credit limits adopted by rule must be adjusted for inflation consistent with the consumer price index defined in the child tax credit section of this chapter.

(6) Administration, audit authority, assessments, interest, penalties, and rulemaking authority apply as provided in chapter 82.32 RCW."

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

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