2228-S.E AMS HORN S3160.3

ESHB 2228 - S AMD 440

By Senator Horn

ADOPTED 04/26/2003

Strike everything after the enacting clause and insert the following:

"NEW SECTION. Sec. 1. DEFINITIONS. The definitions in this section apply throughout this chapter and section 9 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 "flexible 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) "Telework" means a program where work functions that are normally performed at a traditional workplace are instead performed by an employee at his or her home at least one day a week for the purpose of reducing the number of trips to the employee's workplace.

NEW SECTION. Sec. 2. TAX CREDITS--BUSINESS AND OCCUPATION AND PUBLIC UTILITY TAXES. (1) Employers in this state who are taxable under chapter 82.04 or 82.16 RCW 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 July 1, 2013, are allowed a credit against taxes payable under chapters 82.04 and 82.16 RCW 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.

(2) Property managers who are taxable under chapter 82.04 or 82.16 RCW 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 July 1, 2013, are allowed a credit against taxes payable under chapters 82.04 and 82.16 RCW 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.

(3) The credit under this section 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. The credit may not exceed the amount of tax that would otherwise be due under chapters 82.04 and 82.16 RCW.

(4) A person may not receive credit under this section for amounts paid to or on behalf of the same employee under both chapters 82.04 and 82.16 RCW.

(5) A person may not take a credit under this section for amounts claimed for credit by other persons.

NEW SECTION. Sec. 3. TAX CREDIT FILING. (1) Application for tax credit under section 2 of this act may only be made in the form and manner prescribed in rules adopted by the department.

(2) The credit under this section must be taken or deferred under section 4 of this act against taxes due for the same fiscal 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 fiscal year in which the payment is made.

(3) Any person who knowingly makes a false statement of a material fact in the application for a credit under section 2 of this act is guilty of a gross misdemeanor.

NEW SECTION. Sec. 4. TAX CREDIT LIMITATIONS. (1) The department shall keep a running total of all credits accrued under section 2 of this act during each fiscal year. No person is eligible for tax credits under section 2 of this act if the credits would cause the tabulation for the total amount of credits taken in any fiscal year to exceed two million two hundred fifty thousand dollars. This limitation includes any credits carried forward under subsection (2)(b) of this section from prior years.

(2)(a) No person is eligible for tax credits under section 2 of this act in excess of the amount of tax that would otherwise be due under chapter 82.04 or 82.16 RCW.

(b) A person with taxes equal to or in excess of the credit under section 2 of this act, and therefore not subject to the limitation in (a) of this subsection, may defer tax credits for a period of not more than three years after the year in which the credits accrue. A person deferring tax credits under this subsection (2)(b) must submit an application in the year in which the tax credits will be applied. This application is subject to eligibility under subsection (1) of this section for the fiscal year in which the tax credits will be applied.

(3) No person is eligible for tax credits under section 2 of this act in excess of two hundred thousand dollars in any fiscal year. This limitation does not apply to credits deferred in prior years under subsection (2)(b) of this section.

(4) No person is eligible for tax credits, including deferred credits authorized under subsection (2)(b) of this section, after June 30, 2013.

(5) Credits may not be carried forward or carried backward other than as authorized in subsection (2)(b) of this section.

(6) No person is eligible for tax credits under section 2 of this act if the additional revenues for the multimodal transportation account created by Engrossed Substitute House Bill No. 2231 are terminated.

NEW SECTION. Sec. 5. FUND TRANSFER. (1) 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 under section 2 of this act during the preceding calendar quarter ending on the last day of December, March, June, and September, respectively.

(2) On the last day of March, June, September, and December 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 section 2 of this act from the multimodal transportation account.

NEW SECTION. Sec. 6. COMMUTE TRIP REDUCTION REPORTING. The commute trip reduction task force shall determine the effectiveness of the tax credit under section 2 of this act, the grant program in section 9 of this act, and the relative effectiveness of the tax credit and the grant program 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 must include information on the amount of tax credits claimed to date and recommendations on future funding between the tax credit program and the grant program. The report must be incorporated into the recommendations required in RCW 70.94.537(5).

NEW SECTION. Sec. 7. ADMINISTRATION. Chapter 82.32 RCW applies to the administration of this chapter.

NEW SECTION. Sec. 8. EXPIRATION. This chapter expires July 1, 2013, except for section 5 of this act, which expires January 1, 2014.

NEW SECTION. Sec. 9. A new section is added to chapter 70.94 RCW to read as follows:

(1) To the extent that funds are appropriated, the department of transportation shall administer a performance-based grant program for private employers, 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, including telework, before July 1, 2013, to their own or other employees.

(2) The amount of the grant will be determined based on the value to the transportation system of the vehicle trips reduced. The commute trip reduction task force shall develop an award rate giving priority to applications achieving the greatest reduction in trips and commute miles per public dollar requested and considering the following criteria: The local cost of providing new highway capacity, congestion levels, and geographic distribution.

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

(4) The total of grants provided under this section may not exceed seven hundred fifty thousand dollars in any fiscal year.

(5) 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.

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

(7) This section expires January 1, 2014.

NEW SECTION. Sec. 10. The following acts or parts of acts are each repealed:

(1) RCW 82.04.4453 (Credit--Ride-sharing, public transportation, or nonmotorized commuting incentives--Penalty--Report to legislature) and 1999 c 402 s 1, 1996 c 128 s 1, & 1994 c 270 s 2;

(2) RCW 82.04.4454 (Credit--Ride-sharing, public transportation, or nonmotorized commuting incentives--Ceiling) and 1999 c 402 s 3, 1996 c 128 s 2, & 1994 c 270 s 3;

(3) RCW 82.16.048 (Credit--Ride-sharing, public transportation, or nonmotorized commuting incentives--Penalty--Report to legislature) and 1999 c 402 s 2, 1996 c 128 s 3, & 1994 c 270 s 4;

(4) RCW 82.16.049 (Credit--Ride-sharing, public transportation, or nonmotorized commuting incentives--Ceiling) and 1999 c 402 s 4, 1996 c 128 s 4, & 1994 c 270 s 5; and

(5) RCW 47.01.900 (Commute trip reduction program--Transfer from state energy office--References to director or state energy office) and 1998 c 245 s 93 & 1996 c 186 s 301.

NEW SECTION. Sec. 11. Sections 1 through 8 of this act constitute a new chapter in Title 82 RCW.

NEW SECTION. Sec. 12. The code reviser shall place cross- reference sections to chapter 82.-- RCW (sections 1 through 8 of this act) in chapters 82.04 and 82.16 RCW.

NEW SECTION. Sec. 13. This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect on July 1, 2003, but only if Engrossed Substitute House Bill No. 2231 becomes law by July 1, 2003. If Engrossed Substitute House Bill No. 2231 does not become law by July 1, 2003, this act is null and void.

NEW SECTION. Sec. 14. Captions used in this act are not part of the law."

ESHB 2228 - S AMD 440

By Senator Horn

ADOPTED 04/26/2003

On page 1, line 1 of the title, after "incentives;" strike the remainder of the title and insert "adding a new section to chapter 70.94 RCW; adding a new chapter to Title 82 RCW; creating new sections; repealing RCW 82.04.4453, 82.04.4454, 82.16.048, 82.16.049, and 47.01.900; prescribing penalties; providing a contingent effective date; providing expiration dates; and declaring an emergency."

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