6346-S.E AMH REEV TAYT 570

ESSB 6346 - H AMD TO H AMD (H-3793.3/26) 2605

WITHDRAWN 03/09/2026

On page 43, after line 2, insert the following:

"NEW SECTION. Sec. INDIVIDUAL AFFORDABILITY CREDIT FRAMEWORK REVIEW.

(1) The advisory group established under section 712 of this act shall evaluate and develop recommendations regarding the creation of an individual affordability credit framework to be funded by the tax imposed under this chapter.

(2) The advisory group’s review must include consideration of refundable credits, complementary to the working families tax credit, designed to:

(a) Provide per-child tax relief for qualifying dependents;

(b) Offset qualified child and dependent care expenses;

(c) Offset qualified higher education tuition and related expenses;

(d) Encourage retirement savings through contributions to qualified Washington retirement savings programs; and

(e) Enhance refundable credits for working families with incomes at or below the self-sufficiency standard.

(3) In conducting its review, the advisory group shall:

(a) Evaluate the scope and constitutional considerations of authorizing such credits within this chapter;

(b) Assess fiscal impact, including interaction with the revenue distribution provisions of this act;

(c) Analyze distributional impact across income levels;

(d) Evaluate administrative feasibility and alignment with federal tax definitions where practicable;

(e) Recommend income phase-out thresholds to ensure credits prioritize taxpayers between the self-sufficiency standard and the income threshold imposed under this chapter;

(f) Identify potential risks of unintended tax avoidance or duplication with existing state programs; and

(g) Recommend whether credits should be refundable, partially refundable, or nonrefundable.

(4) The advisory group shall consult with:

(a) The department of revenue;

(b) The office of financial management;

(c) The department of children, youth, and families;

(d) The state board for community and technical colleges;

(e) The Washington student achievement council; and

(f) Community-based organizations representing working families and small businesses.

(5) The advisory group must submit a report to the appropriate committees of the legislature no later than December 1, 2027, that includes:

(a) Recommended statutory language;

(b) Estimated fiscal impact over a ten-year forecast period;

(c) Administrative implementation timeline;

(d) Economic impact analysis; and

(e) Recommended effective dates, if any.

(6) This section does not itself create or authorize any credit but directs review and recommendation consistent with the implementation of this chapter."

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