H-1547              _______________________________________________

                                                    HOUSE BILL NO. 859

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Representatives Appelwick, Tilly, Smitherman, Barrett, G. Nelson, Vander Stoep, Lewis, Ballard, Day, Dellwo, Locke, Holland, S. Wilson, Tanner, Brough, Doty and May

Read first time 2/8/85 and referred to Committee on Ways & Means.

AN ACT Relating to  sheltered workshops; and adding new sections 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 the tax under this chapter, a person contracting with one or more sheltered workshops for the rendition of services or manufacturing activities may credit against the amount of the tax an amount not to exceed ten percent of the sums paid to the sheltered workshops pursuant to the contracts during the period covered by the tax return.

          (2) The maximum amount allowed as a credit to any person under this section in any calendar year shall be twenty-five thousand dollars.

          (3) As used in this section, "sheltered workshop" means a sheltered workshop under RCW 84.36.353 which meets the standards under RCW 74.29.080 or could qualify under chapter 71.20 RCW.

NEW SECTION. Sec. 2.  A new section is added to chapter 82.04 RCW to read as follows:

          (1) In computing the tax under this chapter, a person may credit against the amount of the tax, for wages paid to severely handicapped employees who, immediately preceding first employment with such person, were employed by a sheltered workshop, as defined in section 1 of this act, fifty percent of the wages paid to such employees for each quarter of employment not exceeding eight quarters per employee, but no credit may be claimed for any of the eight eligible quarters for an employee for which a credit has been claimed by another employer.

          (2) The maximum amount allowed as a credit under this section in any calendar year shall be ten thousand dollars.

          (3) As used in this section:

          (a) "Severely handicapped employee" means an employee who has a severe physical or mental disability which seriously limits one or more functional capacities, such as mobility, communication, self-care, or work tolerance, and whose vocational rehabilitation can be expected to require multiple services over an extended period of time, but "severely handicapped employee" does not include persons receiving services or compensation under Title 51 RCW; and

          (b) "Wages" means the wages, salaries, or sums paid to an employee in respect to which the employer is required to withhold amounts for federal income tax purposes.