2572-S2.E AMS PARL MEIE 001

E2SHB 2572 - S AMD TO HEA COMM AMD (S5588.2) 227

   By    Senator Deccio

PULLED 3/1/2006

   On page 2, line 16 of the amendment, after "4 of this act" insert "or a business and occupation tax deduction under section 5 of this act"

   On page 3, after line 20 of the amendment, insert the following:

   "NEW SECTION. Sec. 5. A new section is added to chapter 82.04 RCW to read as follows:

   (1) In computing tax there may be deducted from the measure of tax the amount paid by small employers to provide health care services for its employees. Payments made by employees are not eligible for deduction under this subsection.

   (2) For the purposes of this section, the following definitions apply:

   (a) "Small employer" has the meaning provided in RCW 48.43.005;

   (b) "Health care services" means a health benefit plan as defined in RCW 48.43.005, contributions to health savings accounts as defined by the United States internal revenue service, or other health care services purchased by the small employer for its employees."

   Renumber the remaining sections consecutively and correct internal references accordingly.

   On page 5, after line 25 of the amendment, insert the following:

   "NEW SECTION. Sec. 13. Section 5 of this act takes effect July 1, 2006." 

   E2SHB 2572 - S AMD TO HEA COMM AMD (S5588.2) 227

   By    Senator Deccio

   On page 1, line 2 of the title, after "RCW;", strike the remainder of the title and insert "adding a new section to chapter 82.04 RCW; and creating a new section."

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EFFECT: Provides a tax incentive for small employers who provide employer sponsored health care coverage.