Z-1213.4  _______________________________________________

 

                          HOUSE BILL 2639

          _______________________________________________

 

State of Washington      55th Legislature     1998 Regular Session

 

By Representatives Veloria, Dunshee, Morris, Wolfe, O'Brien, Chopp, Conway, Wood, Butler, Ogden, Costa, Regala and Gardner; by request of Governor Locke

 

Read first time 01/16/98.  Referred to Committee on Trade & Economic Development.

Providing business and occupation tax credits for financial institutions making qualified donations for first-time home buyer assistance.


    AN ACT Relating to providing business and occupation tax credits for financial institutions making qualified donations for first-time home buyer assistance; adding a new section to chapter 82.04 RCW; adding a new section to chapter 43.180 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:

    (1) A person who meets the definition of financial institution shall be allowed a credit against tax due under this chapter, as provided in this section, for contributing to qualified efforts to expand affordable housing opportunities.

    (2) "Financial institution" means:

    (a) Any corporation or other business entity chartered under Title 30, 31, 32, or 33 RCW, or registered under the federal bank holding company act of 1956, as amended, or registered as a savings and loan holding company under the federal national housing act, as amended;

    (b) A national bank organized and existing as a national bank association under the national bank act, 12 U.S.C. Sec. 21 et seq.;

    (c) A savings association or federal savings bank as defined in the federal deposit insurance act (12 U.S.C. Sec. 1813(b)(1));

    (d) A bank or thrift institution incorporated or organized under the laws of any state;

    (e) A corporation organized under 12 U.S.C. Secs. 611 to 631;

    (f) An agency or branch of a foreign depository as defined in 12 U.S.C. Sec. 3101;

    (g) A credit union; or

    (h) A production credit association organized under the federal farm credit act of 1933, all of whose stock held by the federal production credit corporation has been retired.

    (3) Subject to the limitations in this section, the credit shall be equal to the amount of money donated to be used for the public purpose stipulated in subsection (1) of this section.  Donations received for that purpose shall be used exclusively for the program implemented under section 2 of this act.  The housing finance commission shall process the donations and send the notices in the order donations are received.  The housing finance commission shall send a notice of each donation to the donee and to the department of revenue.

    (4) Tax credits under this section are available on a first-come basis, with priority based on the date and time the notice is received by the department of revenue from the housing finance commission.  The department of revenue shall keep a running total of all credits approved and shall immediately notify the housing finance commission when the ten million dollar fiscal year cap under subsection (5) of this section is reached.  The housing finance commission shall notify all subsequent donees for the year that no credits are available for the remainder of the fiscal year and that no more applications are being accepted.

    (5) The total of credits granted under this section shall be no more than ten million dollars of credits each fiscal year.  If the amount submitted for a credit in a notice will cause the cap to be exceeded, the department shall give a partial approval of the donation, equal to the amount of remaining credit available for the fiscal year.

    (6) No applicant is eligible for tax credits under this section in excess of the amount of tax that would otherwise be due under this chapter.  Approved credit may not be carried over to subsequent calendar years.  The credit must be claimed by the due date of the last tax return for the calendar year in which the payment is made.  Any unused credit expires.  Refunds shall not be given in place of credits.

    (7) Tax credits shall not be granted for donations that occurred before the effective date of this section.

    (8)(a) "First-time home buyer," for the purposes of this section, means a person or household who has not previously owned its own personal residence in the last three years.

    (b) The program is limited to persons with incomes less than one hundred fifteen percent of the median income of the county in which the home is located or the state median income, whichever is higher.

 

    NEW SECTION.  Sec. 2.  A new section is added to chapter 43.180 RCW to read as follows:

    (1) For the purposes of using the donations received under section 1 of this act, the housing finance commission shall implement a program to provide first-time home buyer assistance for down payments or mortgage assistance to qualifying persons.  "First-time home buyer" has the same meaning as in section 1 of this act.  The housing finance commission may adopt rules as necessary to implement and administer this section.

    (2) The housing finance commission shall report annually to the governor and the legislature on the number of persons using this program and the amount and form of assistance provided.

 

    NEW SECTION.  Sec. 3.  This act takes effect July 1, 1998.

 


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