Modifies tax preference for interest on loans to fund wildfire preparedness.

This bill modifies the tax preference for interest on loans to align with the federal definition of a "community bank," directing the resulting general fund revenues into Washington's wildfire response account. It aims to restore funding to the wildfire response account, which was reduced by 50 percent at the start of the 2025-2027 fiscal biennium. The bill also mandates the Department of Revenue to estimate and report on the revenue impact of these changes, with subsequent transfers to the wildfire response account starting in November 2027.

Modifies tax preference for interest on loans to fund wildfire preparedness.

This bill modifies the tax preference for interest on loans to align with the federal definition of a "community bank," directing the resulting general fund revenues into Washington's wildfire response account. It aims to restore funding to the wildfire response account, which was reduced by 50 percent at the start of the 2025-2027 fiscal biennium. The bill also mandates the Department of Revenue to estimate and report on the revenue impact of these changes, with subsequent transfers to the wildfire response account starting in November 2027.