[atlas:bill]

AN ACT Relating to commute trip reduction incentives; adding new sections to chapter 82.04 RCW; adding new sections to chapter 82.16 RCW; adding a new section to chapter 70.94 RCW; prescribing penalties; providing a contingent effective date; and providing expiration dates.

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) Employers in this state who are taxable under this chapter and provide financial incentives to their own or other employees for ride sharing, for using public transportation, for using car sharing, or for using nonmotorized commuting before June 30, 2006, shall be allowed a credit for amounts paid to or on behalf of employees for ride sharing in vehicles carrying two or more persons, for using public transportation, for using car sharing, or for using nonmotorized commuting, not to exceed sixty dollars per employee per year.

(b) Property managers who are taxable under this chapter and provide financial incentives to persons employed at a worksite in this state managed by the property manager for ride sharing, for using public transportation, for using car sharing, or for using nonmotorized commuting before June 30, 2006, shall be allowed a credit for amounts paid to or on behalf of these persons for ride sharing in vehicles carrying two or more persons, for using public transportation, for using car sharing, or for using nonmotorized commuting, not to exceed sixty dollars per person per year. A person may not take a credit under this section for amounts claimed for credit by other persons.

(c) The credit shall be equal to the amount paid to or on behalf of each employee multiplied by fifty percent, but may not exceed sixty dollars per employee per year. The credit may not exceed the amount of tax that would otherwise be due under this chapter.

(2) Application for tax credit under this section may only be made in the form and manner prescribed in rules adopted by the department.

(3) The credit shall be taken against taxes due for the same calendar year in which the amounts for which credit is claimed were paid to or on behalf of employees for ride sharing, for using public transportation, for using car sharing, or for using nonmotorized commuting and must be claimed by the due date of the last tax return for the calendar year in which the payment is made.

(4) The director shall on the 25th of February, May, August, and November of each year advise the state treasurer of the amount of credit taken during the preceding calendar quarter ending on the last day of December, March, June, and September, respectively.

(5) On the first of April, July, October, and January of each year, the state treasurer based upon information provided by the department shall deposit to the general fund a sum equal to the dollar amount of the credit provided under subsection (1) of this section from the multimodal transportation account.

(6) The commute trip reduction task force shall determine the effectiveness of this tax credit as part of its ongoing evaluation of the commute trip reduction law and report to the legislative transportation committee and to the fiscal committees of the house of representatives and the senate. The report shall include information on the amount of tax credits claimed to date and recommendations on future funding for the tax credit program. The report shall be incorporated into the recommendations required in RCW 70.94.537(5).

(7) Any person who knowingly makes a false statement of a material fact in the application for a credit under subsection (1) of this section is guilty of a gross misdemeanor.

(8) A person may not receive credit for amounts paid to or on behalf of the same employee under both this section and section 4 of this act.

(9) This section expires December 31, 2006.

NEW SECTION. Sec. 2. A new section is added to chapter 82.04 RCW to read as follows:

(1) The department shall keep a running total of all credits granted under sections 1 and 4 of this act and all grants provided under section 6 of this act during each calendar year, and shall disallow any credits that would cause the tabulation for credits and grants in any calendar year to exceed five million dollars.

(2) No person is eligible for tax credits under sections 1 and 4 of this act in excess of one hundred thousand dollars in any calendar year.

(3) No person is eligible for tax credits under section 1 of this act in excess of the amount of tax that would otherwise be due under this chapter.

(4) No portion of an application for credit disallowed under this section may be carried back or carried forward.

(5) No person is eligible for tax credits under sections 1, 4, and 6 of this act within the same calendar year.

(6) This section expires December 31, 2006.

NEW SECTION. Sec. 3. A new section is added to chapter 82.04 RCW to read as follows:

The definitions set forth in this section apply to sections 1, 2, 4, 5, and 6 of this act unless the context clearly requires otherwise.

(1) "Public agency" means any county, city, or other local government agency or any state government agency, board, or commission.

(2) "Public transportation" means the same as "public transportation service" as defined in RCW 36.57A.010 and includes passenger services of the Washington state ferries.

(3) "Nonmotorized commuting" means commuting to and from the workplace by an employee by walking or running or by riding a bicycle or other device not powered by a motor.

(4) "Ride sharing" means the same as "commuter ride sharing" as defined in RCW 46.74.010, including ride sharing on Washington state ferries.

(5) "Car sharing" means a membership program intended to offer an alternative to car ownership under which persons or entities that become members are permitted to use vehicles from a fleet on an hourly basis.

(6) This section expires December 31, 2006.

NEW SECTION. Sec. 4. A new section is added to chapter 82.16 RCW to read as follows:

(1)(a) Employers in this state who are taxable under this chapter and provide financial incentives to their own or other employees for ride sharing, for using public transportation, for using car sharing, or for using nonmotorized commuting before June 30, 2006, shall be allowed a credit for amounts paid to or on behalf of employees for ride sharing in vehicles carrying two or more persons, for using public transportation, or for using nonmotorized commuting, not to exceed sixty dollars per employee per year.

(2) Application for tax credit under this section may only be made in the form and manner prescribed in rules adopted by the department.

(7) Any person who knowingly makes a false statement of a material fact in the application for a credit under subsection (1) of this section is guilty of a gross misdemeanor.

(8) A person may not receive credit for amounts paid to or on behalf of the same employee under both this section and section 1 of this act.

(9) This section expires December 31, 2006.

NEW SECTION. Sec. 5. A new section is added to chapter 82.16 RCW to read as follows:

(2) No person is eligible for tax credits under sections 1 and 4 of this act in excess of one hundred thousand dollars in any calendar year.

(3) No person is eligible for tax credits under section 4 of this act in excess of the amount of tax that would otherwise be due under this chapter.

(4) No portion of an application for credit disallowed under this section may be carried back or carried forward.

(5) No person is eligible for tax credits under sections 1, 4, and 6 of this act within the same calendar year.

(6) This section expires December 31, 2006.

NEW SECTION. Sec. 6. A new section is added to chapter 70.94 RCW to read as follows:

(1) The department of transportation shall administer a grant program for public agencies, nonprofit organizations, developers, and property managers who provide financial incentives for ride sharing in vehicles carrying two or more persons, for using public transportation, for using car sharing, or for using nonmotorized commuting, before June 30, 2006, to their own or other employees.

(2) Public agencies, nonprofit organizations, developers, and property managers are not eligible within the same calendar year for grants provided under this section and credits under section 1 or 4 of this act.

(3) The amount of the grant is equal to the amount paid to or on behalf of each employee multiplied by fifty percent, but may not exceed sixty dollars per employee per year.

(4) No public agency, nonprofit organization, developer, or property manager is eligible for grants under this section in excess of one hundred thousand dollars in any calendar year.

(5) No more than two million dollars in grants may be awarded in any calendar year.

(6) The department of transportation shall report to the department of revenue by the 15th day of each month the aggregate monetary amount of grants provided under this section in the prior month and the identity of the recipients of those grants.

(7) The total of credits granted under sections 1 and 4 of this act and grants provided under this section may not exceed five million dollars in any calendar year. The department of revenue shall notify the department of transportation when this limitation has been reached.

(8) The source of funds for this grant program is the multimodal transportation account.

(9) This section expires December 31, 2006.

NEW SECTION. Sec. 7. This act takes effect January 1, 2002, if specific funding necessary to fulfill the purposes of this act is provided to the multimodal transportation account by December 31, 2001. If funding is not provided, this act is void in its entirety.