H-4161.1  _______________________________________________

                    SUBSTITUTE HOUSE BILL 2666

          _______________________________________________

State of Washington      57th Legislature     2002 Regular Session

By House Committee on Trade & Economic Development (originally sponsored by Representatives Veloria, Dunn, Bush, Roach, Casada, Anderson and Santos)

Read first time 02/07/2002.  Referred to Committee on .

Exempting small business innovative research awards from business and occupation tax.

    AN ACT Relating to small business innovative research awards; adding a new section to chapter 82.04 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) This chapter does not apply to amounts received by any person for research and development under the federal small business innovation research program (114 Stat. 2763A; 15 U.S.C. Sec. 638 et seq.).

    (2) In addition to any other reporting requirements under this chapter, a person taking the tax exemption under this chapter must complete and return the form in RCW 82.32.--- (section 2, chapter . . . (Substitute House Bill No. 2413), Laws of 2002) to the department of revenue by March 1st of each year.  A person who fails to report is ineligible on a prospective basis for business incentives identified in RCW 82.32.--- (section 1, chapter . . . (Substitute House Bill No. 2413), Laws of 2002), subject to the provisions of RCW 82.32.---(4) (section 2(4), chapter . . . (Substitute House Bill No. 2413), Laws of 2002).

NEW SECTION. Sec. 2.  This act takes effect January 1, 2003.

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