5096-S.E AMH VICK H1609.1
ESSB 5096 - H AMD TO FIN COMM AMD (H-1547.5/21) 742
By Representative Vick
NOT ADOPTED 04/20/2021
On page 9, after line 11, insert the following:
"NEW SECTION.  Sec. 9. (1) Subject to the limits and provisions of this section, a credit is authorized against the tax otherwise due under this chapter for an individual's contributions to a charitable organization.
(2) The credit under this section equals the amount deducted by the individual on the individual's federal tax return for the tax year for contributions made to organizations qualified under Title 26 U.S.C. Sec. 170(c) of the internal revenue code. The amount of the credit may not exceed the tax otherwise due under this chapter for that reporting period. No credits may be claimed for contributions made prior to January 1, 2022.
(3) No application is necessary for the tax credit. The individual must keep records necessary for the department to verify eligibility under this section.
(4) Any amount of a tax credit otherwise allowable under this section not claimed by the person in any tax year may be carried forward and claimed against a person's tax liability for the next succeeding tax year; and any credit not used in that next succeeding year may be carried forward and claimed against a person's tax liability for the second succeeding tax year, but may not be carried over for any tax year thereafter. No refunds may be granted for credits under this section.
(5) If at any time the department finds that an individual is not eligible for the tax credit under this section, the amount of taxes for which the credit has been claimed is immediately due. The department must assess interest, but not penalties, on the tax for which the person is not eligible. The interest must be assessed at the rate provided for delinquent excise taxes under chapter 82.32 RCW, is retroactive to the date the tax credit was taken, and accrues until the taxes for which the credit was used are repaid.
(6) A person claiming a credit under this section is not subject to the annual tax performance reporting requirements in chapter 82.32 RCW."
Renumber the remaining sections consecutively and correct any internal references accordingly.
EFFECT: Provides a credit against taxes due on any capital gains for charitable contributions made and claimed by an individual on the individual's federal tax return. Authorizes an unused credit to be available for two subsequent tax years.
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