H‑1984.2 _____________________________________________
SUBSTITUTE HOUSE BILL 1478
_____________________________________________
State of Washington 57th Legislature 2001 Regular Session
By House Committee on Technology, Telecommunications & Energy (originally sponsored by Representatives Ruderman, Esser, Morris, Pennington, DeBolt, Lambert, Hunt, Jarrett, Lovick, Miloscia, Schual‑Berke, Jackley, Cody, Anderson, Kenney, McIntire, Cooper, McDermott, Dunn, Simpson, Van Luven, Santos, Dunshee, Reardon, Dickerson, Linville, Conway, Veloria, Murray, Edmonds, Edwards and Kagi)
READ FIRST TIME 02/27/01.
_1 AN ACT Relating to tax incentives to encourage telework; adding
_2 new sections to chapter 82.04 RCW; adding a new section to chapter
_3 82.16 RCW; adding new sections to chapter 43.131 RCW; creating a
_4 new section; and providing an effective date.
_5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
_6 NEW SECTION. Sec. 1. The legislature recognizes that commuting
_7 accounts for more trips and miles traveled than any other single
_8 purpose. The legislature also recognizes that telework has been
_9 found to reduce commute trips and provide flexibility for work-
10 related travel. Additionally, telework enables employers to allow
11 employees to work outside of urban areas, which reduces urban
12 commute trips while strengthening rural economies. The legislature
13 further recognizes that telework is a key component in a
14 comprehensive transportation demand management package.
15 NEW SECTION. Sec. 2. A new section is added to chapter 82.04
16 RCW to read as follows:
17 (1) A person is allowed a credit against tax due under this
p. 1 SHB 1478
_1 chapter for telework expenditures, including telework equipment,
_2 installation costs, and telework training. Total credits claimed by
_3 a person under this section and section 3 of this act may not
_4 exceed twenty thousand dollars for any tax year. Expenditures made
_5 before the effective date of this act are not eligible for
_6 credit. If a person has used a credit approved under section 3 of
_7 this act against tax under chapter 82.16 RCW, that same credit
_8 cannot be used against tax under this chapter.
_9 (2) Application for credits under this section must be made
10 before making a telework expenditure. Applications must be made to
11 the department in a form and manner as required by the
12 department. The department shall approve or deny applications for
13 credits using the criteria under this subsection. The department
14 shall keep a running total of all credits approved under this
15 subsection during each calendar year, and shall deny any credit
16 application that would cause the tabulation for any calendar year
17 to exceed three million dollars. If a credit is disallowed because
18 the tabulation of credits approved under this section would
19 otherwise exceed three million dollars, the disallowed portion
20 shall be carried over to the next fiscal year. However, the
21 carryover into the next fiscal year is only permitted to the
22 extent that the total for the next fiscal year is not exceeded. The
23 credit may be used against any tax due under this chapter or
24 chapter 82.16 RCW, and may be carried over until used. No refunds
25 may be granted for credits under this section. A person claiming a
26 credit must keep records as necessary for the department to verify
27 eligibility under this section, including records showing that an
28 employee was regularly scheduled for telework at his or her home
29 two or more days per week.
30 (3) The definitions in this subsection apply for the purposes
31 of this section.
32 (a) "Telework" means a work arrangement whereby employees are
33 regularly scheduled two or more days per week to perform the
34 normal duties and responsibilities of their positions at home,
35 through use of computers or telecommunications. The term includes
36 only work arrangements made by employers for employees and
37 excludes persons who are self-employed.
38 (b) "Telework equipment" means:
SHB 1478 p. 2
_1 (i) Desktop and laptop computers, computer-related hardware,
_2 facsimile machines, modems, and similar data processing or
_3 telecommunication equipment used only at an employee's home for
_4 telework purposes; and
_5 (ii) Equipment installed at an employer's place of business
_6 that is used exclusively to provide remote data and voice access
_7 to telework employees.
_8 (c) "Telework expenditures" means amounts spent, including
_9 sales or use taxes paid, to purchase telework equipment, for
10 training, or for telework installation costs. The term includes
11 only expenditures for equipment and services reasonably necessary
12 to facilitate telework.
13 (d) "Telework installation costs" means one-time expenditures
14 for installation of telecommunication access lines or other
15 equipment that provides teleworking capability at an employee's
16 home for the purpose of telework.
17 NEW SECTION. Sec. 3. A new section is added to chapter 82.16
18 RCW to read as follows:
19 An employer is allowed a credit against tax due under this
20 chapter for telework expenditures, as defined in section 2 of this
21 act. A credit may be claimed under this section in the same manner
22 as provided for credits under section 2 of this act. Credits under
23 this section are subject to the same conditions and limitations as
24 credits under section 2 of this act.
25 NEW SECTION. Sec. 4. A new section is added to chapter 82.04
26 RCW to read as follows:
27 A person is eligible for a credit under sections 2 and 3 of
28 this act if the location of the telework is within this state.
29 NEW SECTION. Sec. 5. A new section is added to chapter 43.131
30 RCW to read as follows:
31 The telework expenditure credit created by this act shall be
32 reviewed under this chapter before October 1, 2005. The department
33 of revenue shall provide the information necessary for the joint
34 legislative audit and review committee to provide the required
35 review.
p. 3 SHB 1478
_1
_2 NEW SECTION. Sec. 6. A new section is added to chapter 43.131
_3 RCW to read as follows:
_4 The following acts or parts of acts, as now existing or
_5 hereafter amended, are each repealed, effective October 1, 2006:
_6 (1) Section 2 of this act;
_7 (2) Section 3 of this act;
_8 (3) Section 4 of this act.
_9 NEW SECTION. Sec. 7. If any provision of this act or its
10 application to any person or circumstance is held invalid, the
11 remainder of the act or the application of the provision to other
12 persons or circumstances is not affected.
13 NEW SECTION. Sec. 8. This act takes effect October 1, 2001.
‑‑‑ END ‑‑‑
SHB 1478 p. 4