This bill amends existing Washington tax preference provisions (RCW 82.08.0207 and RCW 82.12.0207) that allow remittance of state sales and use tax paid on VA-approved adapted housing. It extends remittance eligibility through January 1, 2038, increases the per-adapted-housing-project remittance limit to $5,000 (combined across the two cited RCWs), and raises the statewide fiscal-year cap on total remittances to $250,000 unless additional amounts are appropriated. Remittances cover only the state portion of the tax, are approved on a first-in-time basis with the department required to keep a running total, and the department must remit approved amounts quarterly and post monthly the remaining balance toward the annual cap. Beginning in fiscal year 2028, the individual remittance amount and statewide total must be adjusted annually using the U.S. Bureau of Labor Statistics’ Consumer Price Index for the Seattle area. The bill leaves substantive eligibility tied to federal VA grant programs: an “eligible purchaser” is a disabled or severely disabled veteran who received a specially adapted housing or special housing adaptation grant, with the federal definitions cited from 38 C.F.R. 3.809 and 3.809a as of July 1, 2016. Applicants must have paid the tax at purchase and submit proof (for example, a VA grant award letter, construction contracts, invoices). An eligible purchaser may not apply for more than one remittance under RCW 82.08.0207 per calendar quarter, and RCW 82.12.0207 provides a parallel remittance for tax on materials incorporated into adapted housing with the same eligibility requirements. The amended sections expire January 1, 2039 and the act is effective July 1, 2026; the Joint Legislative Audit and Review Committee (JLARC) is required to evaluate the tax preference’s performance metrics. The extracted text refers repeatedly to “the department” without naming the specific agency, omits a chapter number in one citation to the Laws of 2026, and does not include the full prior statutory language being amended, so complete comparison to existing law and the identity of the administering department cannot be determined from these facts alone.

Disabled or severely disabled veterans who received VA specially adapted housing or special housing adaptation grants would be able to recover more of the state sales tax they paid on such home modifications: the per-project remittance rises to $5,000 and the statewide pool increases to $250,000 per fiscal year (with annual CPI adjustments starting in fiscal 2028), but claims are paid on a first-come, first-served basis, limited to the state tax portion, require proof (VA award letter, contracts, invoices), are paid quarterly, and applicants must pay tax up front and may not request more than one remittance per calendar quarter. The remittance program is extended to be available through January 1, 2038 (the amended sections expire January 1, 2039) and the law would take effect July 1, 2026. The state agency charged with administering the remittances must track approvals against the annual cap, post the remaining balance monthly, and remit approved amounts quarterly, so its workload, tracking, and public-reporting duties will increase; the Joint Legislative Audit and Review Committee must evaluate the preference’s performance. The bill text does not name which department is responsible and some cross-references to prior session law are incomplete, so exact administrative authority and how these changes differ from existing rules are unclear from the provided facts.