6346-S.E AMH REEV TAYT 568

ESSB 6346 - H AMD TO H AMD (H-3793.3/26) 2608

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 education credit funded by the taxes 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:

(a) “Eligible student” and “qualified tuition and related expenses” have the same meanings as provided in Title 26 U.S.C. Sec. 25A of the internal revenue code.

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

(i) Claims a federal American opportunity 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.

(3)(a) The credit equals forty percent of the federal American opportunity tax credit claimed by the taxpayer, not to exceed one thousand dollars per eligible student per taxable year.

(b) The credit may not be claimed for more than four taxable years per eligible student.

(c) The credit must begin to phase out at the self-sufficiency standard and 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 phase-out formulas by rule.

(4) Beginning January 1, 2029, and annually thereafter, the maximum credit amount must be adjusted for inflation consistent with the Seattle-area consumer price index and rounded to the nearest five dollars.

(5) The credit is refundable.

(6) Administration and enforcement apply as provided in chapter 82.32 RCW, including audit authority and penalty provisions for improper claims.

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

(8) This section takes effect January 1, 2029."

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