H-295                _______________________________________________

                                                    HOUSE BILL NO. 860

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Representatives Appelwick, Lewis, Smitherman, Barrett, Locke, Vander Stoep, Dellwo, Day, Holland, Tanner, Doty and May

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

AN ACT Relating to the business and occupation taxation of persons contracting with sheltered workshops; 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 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.