S-3942.1  _______________________________________________

                         SENATE BILL 6332

          _______________________________________________

State of Washington      54th Legislature     1996 Regular Session

By Senators Hochstatter, Finkbeiner, Schow and Roach

Read first time 01/11/96.  Referred to Committee on Ways & Means.

Allowing business and occupation tax credits for educational expenses at private K-12 schools.

    AN ACT Relating to business and occupation tax credits for educational expenses at private K-12 schools; adding a new section to chapter 82.04 RCW; and providing an effective date.

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:

    In computing the tax imposed under this chapter, a credit is allowed against the amount of tax otherwise due under this chapter equal to fifty percent of any amounts paid during the reporting period for educational expenses of students incurred in attending private K-12 schools, subject to the following limitations:

    (1) No credit may be taken in excess of two percent of the tax liability for the reporting period; and

    (2) No credit may carry over to a subsequent reporting period.

    As used in this section, "educational expenses" means tuition expenses and expenses for books and materials.

NEW SECTION. Sec. 2.  This act shall take effect July 1, 1996.

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