[atlas:bill]

AN ACT Relating to providing business and occupation tax credits to businesses that provide assistance to qualified first-time home buyers; adding a new section to chapter 82.04 RCW; and adding a new section to chapter 43.180 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) A person subject to taxation under this chapter shall be allowed a credit against tax due under this chapter, as provided in this section, for contributions to an employer-assisted housing program designed to expand affordable housing opportunities for qualified employees.

(2) Subject to the limitations in this section, the credit shall be equal to the amount of money provided by the business to be used for the purpose stipulated in subsection (1) of this section. Amounts 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 amounts and send the notices in the order donations are received. The housing finance commission shall send a notice of each amount to the business and to the department of revenue.

(3) 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 two million dollar fiscal year cap under subsection (4) of this section is reached. The housing finance commission shall notify all subsequent businesses for the year that no credits are available for the remainder of the fiscal year and that no more applications are being accepted.

(4) The total of credits granted under this section shall be no more than two 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.

(5) 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.

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

(7) For the purpose of this section and section 2 of this act:

(a) "Employer-assisted housing" means assistance that is part of the businesses' personnel benefit to nonmanagement workers. These benefits include, but are not limited to group, mortgage origination, closing cost assistance, mortgage guarantees, group mortgage insurance, down payment assistance, mortgage interest rate buy down, and direct cash contribution to qualified employees.

(b) "First-time home buyer" means a person or household who has not previously owned its own personal residence in the last three years.

(c) "Qualified employee" means a first-time home buyer with an income 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) The housing finance commission shall implement a program to provide business and occupation tax credits to businesses that administer employer-assisted housing programs for first-time home buyers that are qualified employees. The housing finance commission, in consultation with the department of revenue, shall adopt rules as necessary to implement and administer this section and section 1 of this act.

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