H-0933.1  _______________________________________________

                          HOUSE BILL 1473

          _______________________________________________

State of Washington      56th Legislature     1999 Regular Session

By Representatives Gombosky, Benson, Wood, Morris, D. Sommers, Schindler, Crouse, Veloria, Miloscia, Eickmeyer, Kessler and Kenney

Read first time 01/26/1999.  Referred to Committee on Economic Development, Housing & Trade.

Exempting interest on loans to small businesses in community empowerment zones.

    AN ACT Relating to small business financing in community empowerment zones; and adding a new section to chapter 82.04 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) In computing tax there may be deducted from the measure of tax by those engaged in banking, loan, security, or other financial businesses, amounts derived as interest on loans to small businesses located in a community empowerment zone.

    (2) As used in this section:

    (a) "Small business" means a sole proprietorship, limited liability company, partnership, or corporation that is subject to taxation under this chapter and that employs less than twenty-five employees.

    (b) "Community empowerment zone" means an area designated by the department of community, trade, and economic development under RCW 43.63A.700.

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