H-1244.1 _______________________________________________
HOUSE BILL 1637
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State of Washington 52nd Legislature 1991 Regular Session
By Representatives Scott, Heavey, Cole, Winsley, Leonard, Cantwell, Wang, Jones, Day, Brough, Rasmussen, Miller, R. Johnson, Kremen and Orr.
Read first time February 5, 1991. Referred to Committee on Trade & Economic Development\Revenue.
AN ACT Relating to tax credits for employer-sponsored child care facilities; and adding a new section to chapter 82.04 RCW.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1. A new section is added to chapter 82.04 RCW to read as follows:
(1) In computing tax due under this chapter, a credit against the amount of tax is allowed for thirty percent of the amount paid on or after the effective date of this act for the construction of a child care facility to be used by the taxpayer's employees. The credit allowed under this section shall not exceed thirty thousand dollars for any taxpayer in any tax year.
(2) For the purposes of this section, "taxpayer" means a taxpayer who employs one hundred or more employees or a consortium of taxpayers who in the aggregate employ one hundred or more employees.
(3) To be eligible for the credit allowed under this section, the taxpayer shall submit to the department upon request a statement certifying that the costs for which the credit is claimed are incurred with respect to constructing a child care facility that will be in operation for a least sixty consecutive months. The department may require any other information necessary to evaluate eligibility under this section.
(4) If a child care facility is constructed by a consortium of two or more taxpayers, the tax credit authorized in this section shall be allowed to participating taxpayers in proportion to each taxpayer's respective share of the costs paid in constructing the facility.
(5) If the credit allowed under this section exceeds the tax imposed by this chapter, that portion of the credit that exceeds the taxes may be carried over to the taxes imposed by this chapter in the next five succeeding tax years. The credit shall be applied first to the earliest income years possible.
(6)(a) If the taxpayer ceases using the facility for which a credit is claimed for child care purposes within sixty months of completion, the taxpayer shall pay a tax as calculated in (b) of this subsection, together with interest at the same rate and computed in the same way as that upon delinquent taxes.
(b) The tax liability under (a) of this subsection shall equal the amount of the credit that was allowed under this section minus the amount of the credit multiplied by a fraction, the numerator of which represents the number of months the facility was used for child care purposes, and the denominator of which is sixty months.
(c) The tax liability under this subsection shall be added to the taxpayer's tax liability for the first reporting period ending not sooner than one year after the month in which the facility ceased being used as a child care facility.
(7) This section shall not apply to expenditures for child care facilities that:
(a) Are provided out-of-state; or
(b) Are not licensed pursuant to the requirements of chapter 74.15 RCW.