BILL REQ. #:  H-0920.2 

Read first time 02/11/2005.   Referred to Committee on Finance.

     AN ACT Relating to a business and occupation tax credit for employer-provided health coverage and contributions; adding a new section to chapter 82.04 RCW; providing an effective date; providing an expiration date; and declaring an emergency.

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 credit is allowed against the tax due under this chapter for an employer that offers a high deductible health plan in conjunction with contributions to employee health savings accounts. The credit is equal to fifty dollars per employee per month in the reporting period.
     (2) No application is necessary for the credit. The person must keep records necessary for the department to verify eligibility under this section. This information includes:
     (a) Employment records for the previous four years;
     (b) Copies of the health insurance certificate provided to the employees; and
     (c) Documentation that evidences contributions to health savings accounts.
     (3) No refunds shall be granted for credits under this section, but credits may be carried over to subsequent years until used.
     (4) For the purpose of this section, the following definitions apply:
     (a) "Employee" means a person working in a full-time position covered under a high deductible health plan.
     (b) "Health savings account" and "high deductible health plan" have the same meanings as provided in 26 U.S.C. Sec. 223.
     (5) This section expires July 1, 2010.

NEW SECTION.  Sec. 2   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 July 1, 2005.