S‑1476.1   _____________________________________________

SUBSTITUTE SENATE BILL 5540

           _____________________________________________

State of Washington      57th Legislature     2001 Regular Session

By Senate Committee on Environment, Energy & Water (originally sponsored by Senators Franklin, Eide, Regala, Fraser, Costa, Rasmussen, Patterson, Kline, Kohl‑Welles, Winsley and Gardner; by request of Governor Locke)

READ FIRST TIME 02/12/01. 

_1      AN ACT Relating to public utility tax credits for home energy

_2  assistance programs for low-income households; and adding a new

_3  section to chapter 82.16 RCW.

_4  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

_5      NEW SECTION. Sec. 1.  A new section is added to chapter 82.16

_6  RCW to read as follows:

_7      (1) Unless the context clearly requires otherwise, the

_8  definitions in this subsection apply throughout this section.

_9      (a) "Base credit" means the maximum amount of credit against

10  the tax imposed by this chapter that each light and power business

11  or gas distribution business may take each fiscal year as

12  calculated by the department.  The base credit is equal to the

13  proportionate share that the total grants received by each light

14  and power business or gas distribution business in the prior

15  fiscal year bears to the total grants received by all light and

16  power businesses and gas distribution businesses in the prior

17  fiscal year multiplied by two million five hundred thousand

18  dollars.

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_1      (b) "Billing discount" means a reduction in the amount charged

_2  for providing service to qualifying persons in Washington made by

_3  a light and power business or a gas distribution business.  Billing

_4  discount does not include grants received by the light and power

_5  business or a gas distribution business.

_6      (c) "Grant" means funds provided to a light and power business

_7  or gas distribution business by the department of community,

_8  trade, and economic development or by a qualifying organization.

_9      (d) "Low-income home energy assistance program" means energy

10  assistance programs for low-income households as defined on

11  December 31, 2000, in the low-income home energy assistance act of

12  1981 as amended August 1, 1999, 42 U.S.C. Sec. 8623 et seq.

13      (e) "Qualifying person" means a Washington resident who applies

14  for assistance and qualifies for a grant regardless of whether

15  that person receives a grant.

16      (f) "Qualifying contribution" means money given by a light and

17  power business or a gas distribution business to a qualifying

18  organization, exclusive of money received in the prior fiscal year

19  from its customers for the purpose of assisting other customers.

20      (g) "Qualifying organization" means an entity that has a

21  contractual agreement with the department of community, trade, and

22  economic development to administer in a specified service area low-

23  income home energy assistance funds received from the federal

24  government and such other funds that may be received by the

25  entity.

26      (2) Subject to the limitations in this section, a light and

27  power business or a gas distribution business may take a credit

28  each fiscal year against the tax imposed under this chapter for

29  qualifying contributions and for billing discounts that are equal

30  to or greater than one hundred twenty-five percent of the billing

31  discounts given in fiscal year 2000.  If no billing discounts were

32  given in fiscal year 2000 a credit shall be allowed on any billing

33  discounts given in any subsequent fiscal year.  Thereafter, credit

34  shall be allowed on billing discounts given that are equal to or

35  greater than one hundred twenty-five percent of the billing

36  discounts given in the first fiscal year such billing discounts

37  are given.  The amount of credit shall be fifty percent of the total

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_1  billing discounts and qualifying contributions, limited to the

_2  base credit for the same fiscal year.

_3      (3) The total amount of credit, statewide, that may be taken in

_4  any fiscal year shall not exceed two million five hundred thousand

_5  dollars.  By May 1st of each year starting in 2002, the department

_6  of community, trade, and economic development shall notify the

_7  department of revenue in writing of the grants received in the

_8  current fiscal year by each light and power business and gas

_9  distribution business.

10      (4)(a) Not later than June 1st of each year beginning in 2002,

11  the department shall publish the base credit for each light and

12  power business and gas distribution business for the next fiscal

13  year.

14      (b) Not later than July 1st of each year beginning in 2002,

15  application for credit must by made to the department including

16  but not limited to the following information:  Billing discounts

17  given by the applicant in fiscal year 2000; qualifying

18  contributions given by the applicant in the prior fiscal year; the

19  amount of money received in the prior fiscal year from customers

20  for the purpose of assisting other customers; the base credit for

21  the next fiscal year for the applicant; the qualifying

22  contributions anticipated to be given in the next fiscal year; and

23  billing discounts anticipated to be given in the next fiscal

24  year.  No credit under this section will be allowed to a light and

25  power business or gas distribution business that does not file the

26  application by July 1st.

27      (c) Not later than August 1st of each year beginning in 2002,

28  the department shall notify each applicant of the amount of credit

29  that may be taken in that fiscal year.

30      (d) The balance of base credits not used by other light and

31  power businesses and gas distribution businesses shall be ratably

32  distributed to applicants under the formula in subsection (1)(a)

33  of this section.  The total amount of credit that may be taken by an

34  applicant is the base credit plus any ratable portion of unused

35  base credit.

36      (5) The credit taken under this section is limited to the

37  amount of tax imposed under this chapter for the fiscal year.  The

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_1  credit must be claimed in the fiscal year in which the billing

_2  reduction is made.  Any unused credit expires.  Refunds shall not be

_3  given in place of credits.

_4      (6) No credit may be taken for billing discounts made before

_5  July 1, 2001.  Within two weeks of the effective date of this

_6  section, the department of community, trade, and economic

_7  development shall notify the department of revenue in writing of

_8  the grants received in fiscal year 2001 by each light and power

_9  business and gas distribution business.  Within four weeks of the

10  effective date of this section, the department of revenue shall

11  publish the base credit for each light and power business and gas

12  distribution business for fiscal year 2002.  Within eight weeks of

13  the effective date of this section, application to the department

14  must be made showing the information required in subsection (4)(b)

15  of this section.  Within twelve weeks of the effective date of this

16  section, the department shall notify each applicant of the amount

17  of credit that may be taken in fiscal year 2002.

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