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Proposal for state disability tax credit fails after questions about administration and legality
Summary
A bill proposing a refundable state tax credit for people with disabilities not already on federal disability failed after debate over administration, eligibility (excludes SSDI recipients), lack of implementing agency, and the state's lack of a general income tax.
The chamber considered Senate Bill 3.13 proposing a Washington state disability tax credit intended to refund a small portion of taxes to people with disabilities who are not receiving federal disability benefits. Proponent Isabella Fedolli described personal experience with high out-of-pocket costs and urged the chamber to take a small step toward relief.
Several delegates raised administrative and constitutional concerns. Delegates pointed out Washington lacks a broad state income tax ("We don't have a state income tax," one delegate said), leaving unclear which tax the credit would attach to. Critics also noted the bill excludes people already on federal disability (SSD I) and lacks an implementing agency or a standardized evaluation system; one speaker warned this could invite diagnosis-shopping or inconsistent application.
After extended debate on eligibility, administration, and practical mechanics, delegates moved to vote; the transcript records the bill failed. The transcript does not include a fiscal note or an implementing agency assignment. Proponents framed the bill as a preliminary step but acknowledged wording problems and the need for further drafting work.
