BILL REQ. #:  S-1754.1 

Read first time 02/18/2005.   Referred to Committee on Transportation.

     AN ACT Relating to commute trip reduction tax credit; amending RCW 82.70.010, 82.70.020, 82.70.030, and 82.70.040; adding a new section to chapter 82.70 RCW; providing an effective date; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1   RCW 82.70.010 and 2003 c 364 s 1 are each amended to read as follows:
     The definitions in this section apply throughout this chapter and RCW 70.94.996 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.
     (7) "Applicant" means a person applying for a tax credit under this chapter.

NEW SECTION.  Sec. 2   A new section is added to chapter 82.70 RCW to read as follows:
     (1) Application for tax credits under this chapter must be received by the department between the first day of January and the 31st day of January, following the calendar year in which the applicant made payments 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. The application shall be made to the department in a form and manner prescribed by the department. The application shall contain information regarding the number of employees for which incentives are paid during the calendar year, the 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, the amount of credit deferred under RCW 82.70.040(2)(b)(i) to be used, and other information required by the department. For applications due by January 31, 2006, the application shall not include amounts paid from January 1, 2005, through June 30, 2005, 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.
     (2) The department shall rule on the application within sixty days of the deadline provided in subsection (1) of this section.
     (3) The department shall disapprove any application not received by the deadline provided in subsection (1) of this section regardless of the reason that the application was received after the deadline.
     (4) After an application is approved and tax credit granted, no increase in the credit shall be allowed.

Sec. 3   RCW 82.70.020 and 2003 c 364 s 2 are each amended to read as follows:
     (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 fiscal 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 fiscal 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 fiscal year. The credit may not exceed the amount of tax that would otherwise be due under chapters 82.04 and 82.16 RCW. No refunds may be granted for credits under this section.
     (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.

Sec. 4   RCW 82.70.030 and 2003 c 364 s 3 are each amended to read as follows:
     (((1) Application for tax credit under RCW 82.70.020 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 RCW 82.70.040 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 required under section 2 of this act for a credit under RCW 82.70.020 is guilty of a gross misdemeanor.

Sec. 5   RCW 82.70.040 and 2003 c 364 s 4 are each amended to read as follows:
     (1)(a) The department shall keep a running total of all credits ((accrued)) allowed under RCW 82.70.020 during each fiscal year. ((No person is eligible for tax credits under RCW 82.70.020 if the credits would cause the tabulation for the total amount of credits taken in any fiscal year)) The department shall not allow any credits which would cause the total amount allowed to exceed two million two hundred fifty thousand dollars in any fiscal year. This limitation includes any deferred credits carried forward under subsection (2)(b)(i) of this section but does not include any credits carried forward under subsection (2)(b)(ii) of this section from prior years.
     (b) If the total amount of credit applied for by all applicants in any year exceeds the limit in this subsection, the department shall ratably reduce the amount of credit allowed for all applicants so that the limit in this subsection is not exceeded. If an application for credit under section 2 of this act includes credit deferred under subsection (2)(b)(i) of this section, in addition to credit requested for incentives paid in the previous calendar year, the reduction under this subsection (1)(b) is applied first to credit for incentives paid in the previous calendar year and then, if necessary, to any deferred credit.
     (2)(a) No person is eligible for tax credits under RCW 82.70.020 in excess of the amount of tax that would otherwise be due under chapter 82.04 or 82.16 RCW.
     (b)(i) Until July 1, 2005, a person with taxes equal to or in excess of the credit under RCW 82.70.020, 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. No credits deferred under this subsection (2)(b)(i) may be used after June 30, 2008. A person deferring tax credits under this subsection (2)(b)(i) must submit an application as provided in section 2 of this act in the year in which the tax credits will be ((applied)) used. This application is subject to ((eligibility under)) the provisions of subsection (1) of this section for the ((fiscal)) year in which the tax credits will be applied. If a deferred credit is reduced under subsection (1)(b) of this section, the amount of deferred credit disallowed because of the reduction may be carried forward as long as the period of deferral does not exceed three years after the year in which the credit was earned.
     (ii) For credits approved by the department after the effective date of this act, the credit may be carried over until used.
     (3) No person ((is eligible)) shall be approved for tax credits under RCW 82.70.020 in excess of two hundred thousand dollars in any fiscal year. This limitation does not apply to credits ((deferred in)) carried forward from 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 RCW 82.70.020 if the additional revenues for the multimodal transportation account created by Engrossed Substitute House Bill No. 2231 are terminated.

NEW SECTION.  Sec. 6   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.