Establishing an equine industry tax credit, allowing the horse racing commission to impose a fee, and using equine industry sales tax revenues for federal regulatory compliance.

HB 1703 creates a tax credit for licensed horse racing venues in Washington, allowing them to offset state sales tax payments with amounts they pay to federal horseracing safety fees under the Horseracing Integrity and Safety Act of 2020. It also authorizes the Washington Horse Racing Commission to impose fees to cover federal compliance costs, with revenues deposited into a dedicated "Washington Equine Industry Federal Regulatory Account." The account receives up to $1.5 million annually from state sales tax revenues collected by class 1 racing associations, which must be used exclusively for federal regulatory fees. The bill takes effect in 2025 for fee authority and 2026 for the tax credit, aiming to streamline compliance with federal requirements.