This bill amends RCW 82.08.0206 to create a refundable working families' tax credit funded by sales and use tax. It sets base refund amounts for calendar year 2023 and thereafter ($300 with no qualifying children, $600 with one qualifying child, $900 with two, $1,200 with three or more) and establishes income-based reduction schedules for each family size. It defines eligible low-income persons by reference to the federal child tax credit rules (26 U.S.C. §32) with specific state provisions allowing filers with ITINs and filers who used married filing separately (with one federal special rule excluded), and it adopts federal definitions for earned income and qualifying child subject to limited state exceptions. The bill also creates an additional refundable renter credit of $300 beginning in 2026 for persons who leased or rented their primary residence or a mobile home lot in Washington for at least 183 days (days may be aggregated across leases and the applicant must be a signatory), requires annual inflation adjustments to refund amounts (general amounts beginning Jan 1, 2024; the renter amount beginning Jan 1, 2027), and sets rounding rules. The bill makes administrative and procedural changes for issuing and verifying refunds: an unspecified state department must set application dates, accept applications and attestations (subject to audit), calculate refunds, require applicants to retain records, and may verify eligibility and residency using IRS, federal and state records, third-party data, or automated tools. The department is directed to coordinate public outreach and to work with the IRS to provide automatic administration of the credit “as soon as practicable.” The bill prohibits using receipt of the refund to determine eligibility for state income support programs or as a public charge determination and requires the department to protect recipients’ privacy under chapter 82.32 RCW. The bill establishes collection and enforcement procedures: the department may assess and recover overpayments (including against a spouse when refunds were based on a joint federal return), apply interest under RCW 82.32.050 starting six months after assessment, and impose penalties under RCW 82.32.090 after six months; if the department proves fraud by clear, cogent, and convincing evidence, it must assess an additional penalty equal to 50 percent of the overpaid amount. If a refund was underpaid within the allowed refund period, the department must remit the additional amount; interest does not apply to refunds. Important contingencies and uncertainties remain in the extracted text: one part states the credit applies to calendar years beginning Jan 1, 2022 and the base schedule applies for 2023 and after, while another provision says refunds may not be provided for any period before Jan 1, 2025. The act is contingent on funding being provided in the omnibus appropriations act by June 30, 2025 (otherwise null and void) and takes effect Jan 1, 2026 only if a proposed constitutional amendment (Senate Joint Resolution No. 8203) is validly submitted and approved by voters; if that amendment is not approved the act is void. The extracted text does not identify which state department administers the credit and omits portions of the statute and rulemaking authority referenced in the bill.

If enacted and funded, the measure would provide refundable state payments to people who qualify for the federal earned income tax credit: base amounts from $300 (no qualifying children) up to $1,200 (three or more children) for calendar years 2023 onward, plus a $300 renter supplement beginning for calendar year 2026 for people who leased their primary residence or a mobile home lot at least 183 days. Payments would be reduced as income rises according to specified schedules, adjusted annually for inflation, and applicants generally file in the year after the federal return; people can claim unclaimed years within a limited three‑year window. Refunds may not be paid for any period before January 1, 2025. An unspecified state department would have to set an application start date, run outreach, work with the IRS toward automatic administration, verify claims using IRS, state or third‑party records (or signed attestations subject to audit), audit recipients, recover overpayments (with interest beginning six months after an assessment and a 50% penalty for knowing fraud), and protect recipient privacy under chapter 82.32 RCW. The program only takes effect if the legislature includes funding in the omnibus appropriations by June 30, 2025 and a related constitutional amendment is approved by voters, so whether and when payments occur is currently uncertain. The law also bars using receipt of these refunds in state income‑support eligibility or public‑charge determinations.