Bill > HB2025

This bill modifies the Working Families' Tax Credit (WFTC) to provide an additional $300 refund for low-income renters starting in calendar year 2026. The new provision requires eligible individuals to have leased or rented their primary Washington residence for at least 183 days during the tax year, with the ability to aggregate rental periods across multiple lease agreements. To qualify, individuals must meet existing WFTC eligibility requirements, which include having earned income, filing a federal tax return, and being a Washington resident. The additional rental-related refund will be adjusted annually for inflation beginning in 2027 and will be subject to income-based phase-out rules similar to the existing tax credit. Applicants must submit a copy of their lease or rental agreement when applying for the additional refund. The bill aims to recognize the economic impact of property taxes incorporated into rental amounts by providing extra financial support to low-income renters. The new provision does not apply retroactively and will first be available for the 2026 tax year, with the goal of helping renters offset housing-related expenses.

Budget and Finance

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