BILL REQ. #: H-1251.2
| State of Washington | 59th Legislature | 2005 Regular Session |
Read first time 02/09/2005. Referred to Committee on Technology, Energy & Communications.
AN ACT Relating to tax incentives to attract and retain the biotechnology industry; adding a new section to chapter 82.04 RCW; adding a new section to chapter 82.08 RCW; adding a new section to chapter 82.12 RCW; adding a new section to chapter 84.36 RCW; creating new sections; and providing an effective date.
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:
In computing tax there may be deducted from the measure of tax
amounts received for qualified research and development or pilot-scale
manufacturing in the biotechnology field. A person claiming exemption
under this section for a reporting period may not claim or assign tax
credits for biotechnology research and development expenditures for the
same reporting period. The definitions in RCW 82.63.010 apply to this
section.
NEW SECTION. Sec. 2 A new section is added to chapter 82.08 RCW
to read as follows:
(1) The tax levied by RCW 82.08.020 does not apply to sales of
tangible personal equipment used directly in qualified research and
development in the biotechnology field, to services rendered in respect
to installing, repairing, cleaning, altering, or improving of the
tangible personal property, or to items that become an ingredient or
component of the tangible personal property. The exemptions in this
section do not apply to construction materials, office equipment,
building equipment, administrative supplies, or vehicles.
(2) A person taking the exemption under this section must keep
records necessary for the department to verify eligibility under this
section. The exemption is available only when the buyer provides the
seller with an exemption certificate in a form and manner prescribed by
the department. The seller shall retain a copy of the certificate for
the seller's files.
(3) The definitions in RCW 82.63.010 apply to this section.
NEW SECTION. Sec. 3 A new section is added to chapter 82.12 RCW
to read as follows:
The provisions of this chapter do not apply with respect to the use
of tangible personal property used directly in qualified research and
development in the biotechnology field, to services rendered in respect
to installing, repairing, cleaning, altering, or improving of the
tangible personal property, or to items that become an ingredient or
component of the tangible personal property. The exemptions in this
section do not apply to construction materials, office equipment,
building equipment, administrative supplies, or vehicles. The
definitions in RCW 82.63.010 apply to this section.
NEW SECTION. Sec. 4 A new section is added to chapter 84.36 RCW
to read as follows:
Real and personal property used directly in qualified research and
development in the biotechnology field is exempt from taxation. The
definitions in RCW 82.63.010 apply to this section.
NEW SECTION. Sec. 5 Section 4 of this act applies to taxes
levied for collection in 2006 and thereafter.
NEW SECTION. Sec. 6 If the department of revenue determines that
any property for which exemption was claimed under section 1, 2, 3, or
4 of this act is no longer used directly in qualified research and
development in the biotechnology field, the department shall make a
determination that the exemptions under those sections are no longer
effective in respect to that property, and all taxes that would have
been otherwise due in respect to the sale, use, or ownership of the
property are immediately due and payable. Interest shall be paid at
the rate provided in RCW 82.32.050 from the date the exemption was
first taken. A penalty of twenty-five percent shall be assessed
against the taxes due and payable.
NEW SECTION. Sec. 7 This act takes effect August 1, 2005.