Washington state is launching a new tax credit for the poor, but lawmakers are waiting until after this fall’s elections to determine how they’ll pay for the $110 million worth of rebates. 

Gov. Christine Gregoire on Tuesday gave final approval to a startup plan for the “Working Families” tax credit program, directing the state Revenue Department to assemble workers and infrastructure needed to administer the possible sales tax rebates.  If the Legislature finds a way to pay for the benefits, the state will eventually send rebate checks to low-wage Washingtonians who qualify for the federal Earned Income Tax Credit.  

State officials estimate about 337,000 households would apply for a state rebate in the 2010 fiscal year, with a price tag of about $110 million in lost sales tax revenue during the 2009-2011 state budget cycle.