1795-S2 AMH ANDG MERE 240

2SHB 1795 - H AMD TO H AMD (H-2744.2/11) 763

By Representative Anderson

FAILED 05/09/2011

On page 23, after line 13, insert the following:

"NEW SECTION. Sec. 12. It is the intent of the legislature to support a robust and diversified economy with a well-trained and educated workforce. It is also the intent of the legislature to help enable individuals who receive their postsecondary education in Washington to find employment and remain in the state upon graduation. Further, in order for Washington business to prosper in a highly competitive global economy, business must have the necessary employee talent, and it is the intent of the legislature to help business meet its employment needs through the Washington higher education internship program.

NEW SECTION. Sec. 13. A qualifying internship must meet the following requirements:

(1) A written plan for the internship experience must be developed and approved jointly by the intern, a representative on behalf of the institution of higher education, and a representative of the participating employer.

(2) The intern must be:

(a) An undergraduate with at least ninety quarter credits, or the equivalent semester credits, or a graduate student; and

(b) Currently enrolled in an institution of higher education in the state of Washington.

(3) The plan must:

(a) Provide the intern with the opportunity to learn current practices in business, industry, or government;

(b) Identify the skills and knowledge that will be enhanced and any practical applications of those skills and knowledge in the intern's major or career field; and

(4) Upon completion of the internship, the intern shall submit to the institution of higher education a report that includes the following information:

(a) A summary evaluation of the internship experience, prepared and signed by the intern; and

(b) A summary evaluation of the intern's experience, prepared and signed by a representative of the participating employer.

(5) Upon receipt of the report in subsection (4) of this section, the institution of higher education must provide written certification to the department of revenue and the participating employer as to whether the internship meets the qualifying requirements.

NEW SECTION. Sec. 14. A new section is added to chapter 82.04 RCW to read as follows:

(1) In computing the tax imposed under this chapter, a credit is allowed to participants in the Washington higher education internship program created in section 16 of this act for wages and benefits paid to interns in qualifying internships.

(2) The credit allowed under this section is equal to eighty-five percent of the value of a participant's payments of wages and benefits to interns in qualifying internships. Internship wage and benefit calculations shall not exceed the state median entry level wage as determined by the employment security department. If an internship does not meet the requirements of section 202 of this act, the participant must remit to the department the value of any credits taken plus interest. The credit earned by a participant in one calendar year may be carried over to be credited against taxes incurred in the subsequent six calendar years.

(3) A person claiming the credit provided in this section must file a complete annual survey with the department under RCW 82.32.585."

Renumber the remaining sections consecutively and correct any internal references accordingly.

On page 45, after line 28, insert the following:

"NEW SECTION. Sec. 29. Sections 12 and 13 of this act constitute a new chapter in Title 28B RCW."

Renumber the remaining sections consecutively and correct any internal references accordingly.

EFFECT: Creates an internship program for which businesses may get a business and occupation tax credit equal to 85 percent of the value of payments of wages and benefits paid to interns in qualifying internships.

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