WSR 05-05-062

PREPROPOSAL STATEMENT OF INQUIRY

DEPARTMENT OF REVENUE


[ Filed February 15, 2005, 11:14 a.m. ]

Subject of Possible Rule Making: WAC 458-20-24003 Tax incentives for high technology businesses.

Statutes Authorizing the Agency to Adopt Rules on this Subject: RCW 82.32.300 and 82.01.060(2).

Reasons Why Rules on this Subject may be Needed and What They Might Accomplish: This rule explains the tax incentives, contained in chapter 82.63 RCW and RCW 82.04.4452, which apply to businesses engaged in research and development or pilot scale manufacturing in Washington in five high technology areas: Advanced computing, advanced materials, biotechnology, electronic device technology, and environmental technology.

The department is considering a revision to this rule to incorporate provisions of chapter 2, Laws of 2004. These provisions extend the expiration date of the credit and the deferral program to January 1, 2015. Furthermore, they require completion of an annual survey by a person claiming the credit and an applicant of the deferral program. The method of calculating the credit is revised. Finally, the definitions of eligible investment project, person, initiation of construction, and qualified research and development expenditures are either added or revised.

Other Federal and State Agencies that Regulate this Subject and the Process Coordinating the Rule with These Agencies: None.

Process for Developing New Rule: Modified negotiated rule making.

Interested parties can participate in the decision to adopt the new rule and formulation of the proposed rule before publication. Written comments may be submitted by mail, fax, or at the public meeting. Oral comments will be accepted at the public meeting. A preliminary draft of the proposed changes is available upon request. Written comments on and/or requests for copies of the rule may be directed to Allan C. Lau, Interpretations and Technical Advice Unit, P.O. Box 47453, Olympia, WA 98504-47453, e-mail Allanl@dor.wa.gov, phone (360) 570-6134, fax (360) 586-5543.

Public Meeting Location: Capital Plaza Building, 4th Floor, Executive Large Conference Room, 1025 Union Avenue S.E., Olympia, WA, on March 23, 2005, at 10:00 a.m.

Assistance for Persons with Disabilities: Contact Sandy Davis no later than ten days before the hearing date, TTY 1-800-451-7985 or (360) 725-7499.

February 15, 2005

Alan R. Lynn

Rules Coordinator

Washington State Code Reviser's Office