BILL REQ. #:  H-4556.1 

Read first time 01/29/2004.   Referred to Committee on Trade & Economic Development.

     AN ACT Relating to a business and occupation tax credit for small business; and adding a new section to chapter 82.04 RCW.

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) In computing the tax imposed under this chapter, a credit is allowed for investment in computers and preinstalled software on those computers, used by an eligible person exclusively for business purposes. The credit is equal to the purchase price of the property multiplied by ten percent.
     (2) No application is necessary for the tax credit. Persons taking the credit are subject to all of the requirements of chapter 82.32 RCW. In no case may a credit earned during one calendar year be carried over to be credited against taxes incurred in a subsequent calendar year. No refunds may be granted for credits under this section. Credit taken in any one calendar year may not exceed twenty million dollars, and credit taken under this section by any one person may not exceed one hundred ten dollars per computer.
     (3) For purposes of this section, "eligible person" means a person as defined in RCW 82.04.030, who is a "small business" as defined in RCW 19.85.020.