Bill > HB1214

This bill expands eligibility for the Working Families' Tax Credit (WFTC) by modifying the age requirement for the tax credit. Currently, individuals must meet specific federal Earned Income Tax Credit (EITC) age and income requirements, but this bill allows individuals who are at least 18 years old by the end of the prior federal tax year to qualify, regardless of whether they previously met all federal EITC requirements. The tax credit remains a refundable credit funded by sales and use tax, with varying amounts based on the number of qualifying children: $300 for no children, $600 for one child, $900 for two children, and $1,200 for three or more children. The credit amount phases out gradually as income increases, with specific reduction percentages depending on the number of qualifying children. Applicants must be Washington residents, file a federal tax return, and have paid Washington sales or use tax. The bill maintains existing provisions about application processes, privacy protections, and administrative oversight by the Department of Revenue. The tax credit is designed to provide economic relief to low and middle-income workers by helping them recover some of the sales tax they pay, with a goal of decreasing the regressivity of Washington's tax system. The bill will take effect on January 1, 2026.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=1214&Year=2025&Initiative=false