S-0699.1 _______________________________________________
SENATE BILL 5424
_______________________________________________
State of Washington 55th Legislature 1997 Regular Session
By Senators West, Wojahn, Winsley, Hale, Franklin, Jacobsen and Rasmussen
Read first time 01/27/97. Referred to Committee on Ways & Means.
AN ACT Relating to international services; adding new sections to chapter 82.04 RCW; and adding a new section to chapter 48.14 RCW.
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) There may be credited against the tax imposed by this chapter, an amount equal to five percent of the qualified payroll, by a business that is:
(a) Located within a designated community empowerment zone; and
(b) Engaged in the business of providing international services.
(2) In order to claim the tax credit under this section the business must:
(a) Expend an amount, averaged over the most recent five-year period, equal or greater than twenty percent of the tax credit on training of empowerment zone employees;
(b) Provide internship positions in conjunction with a targeted program of study offered by a local institution of higher education or vocational-technical school designed to provide experience relevant to the activities of the business; and
(c) Hire, over the most recent five-year period, at least twenty percent of the total employees located within the designated community empowerment zone from applicants who reside, at the time of application, in the designated community empowerment zone.
(3) A business may not use the tax credit to relocate existing jobs in a community in the state to the designated community empowerment zone.
(4) The annual credit allowed under this section shall be limited to the amount of tax imposed by this chapter.
(5) As used in this section and section 2 of this act:
(a) "Designated community empowerment zone" means a geographic area approved under RCW 43.63A.700;
(b) "International services" means a business that:
(i) Either:
(A) Provides services directly related to the delivery of goods or services outside the United States or directly related to property located outside the United States; or
(B) Provides services to or on behalf of persons residing outside the United States; and
(ii) Is subject to taxation under RCW 48.14.020 or 82.04.290 (1) or (2); and
(c) "Qualified payroll" means the gross wages and benefits paid or accrued, with respect to each employee of the business that is directly involved in providing international services and was hired after the effective date of this act, during the first five years of such employee's employment within a designated community empowerment zone.
NEW SECTION. Sec. 2. A new section is added to chapter 48.14 RCW to read as follows:
(1) There may be credited against the tax imposed under RCW 48.14.020, an amount equal to five percent of the qualified payroll, by a business that is:
(a) Located within a designated community empowerment zone; and
(b) Engaged in the business of providing international services.
(2) In order to claim the tax credit under this section the business must:
(a) Expend an amount, averaged over the most recent five-year period, equal or greater than twenty percent of the tax credit on training of empowerment zone employees;
(b) Provide internship positions in conjunction with a targeted program of study offered by a local institution of higher education or vocational-technical school designed to provide experience relevant to the activities of the business; and
(c) Hire, over the most recent five-year period, at least twenty percent of the total employees located within the designated community empowerment zone from applicants who reside, at the time of application, in the designated community empowerment zone.
(3) A business may not use the tax credit to relocate existing jobs in a community in the state to the designated community empowerment zone.
(4) The annual credit allowed under this section shall be limited to the amount of tax imposed by this chapter.
(5) As used in this section:
(a) "Designated community empowerment zone" has the same meaning as in section 1 of this act;
(b) "International services" has the same meaning as in section 1 of this act; and
(c) "Qualified payroll" has the same meaning as in section 1 of this act.
NEW SECTION. Sec. 3. A new section is added to chapter 82.04 RCW to read as follows:
(1) In computing tax there may be deducted from the measure of tax amounts derived from sales to businesses engaged in providing direct international services, if the qualified supportive business is located in a designated community empowerment zone.
(2) As used in this section:
(a) "Designated community empowerment zone" has the same meaning as in section 1 of this act;
(b) "International services" has the same meaning as in section 1 of this act; and
(c) "Qualified supportive business" means a business that provides supplies to a business engaged in providing international services.
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