2644AMSPOULS5894.1HB 2644S AMDBy Senators Poulsen, PrenticeADOPTED 03/07/2006 Strike everything after the enacting clause and insert thefollowing:Sec. RCW 82.16.0497 and 2001 c 214 s 13 are each amended toread as follows: (1) Unless the context clearly requires otherwise, the definitionsin this subsection apply throughout this section. (a) "Base credit" means the maximum amount of credit against thetax imposed by this chapter that each light and power business or gasdistribution business may take each fiscal year as calculated by thedepartment. The base credit is equal to the proportionate share thatthe total grants received by each light and power business or gasdistribution business in the prior fiscal year bears to the totalgrants received by all light and power businesses and gas distributionbusinesses in the prior fiscal year multiplied by five million fivehundred thousand dollars for fiscal year 2007, and two million fivehundred thousand dollars for all other fiscal years before and afterfiscal year 2007. (b) "Billing discount" means a reduction in the amount charged forproviding service to qualifying persons in Washington made by a lightand power business or a gas distribution business. Billing discountdoes not include grants received by the light and power business or agas distribution business. (c) "Grant" means funds provided to a light and power business orgas distribution business by the department of community, trade, andeconomic development or by a qualifying organization. (d) "Lowincome home energy assistance program" means energyassistance programs for lowincome households as defined on December31, 2000, in the lowincome home energy assistance act of 1981 asamended August 1, 1999, 42 U.S.C. Sec. 8623 et seq. Official Print - 1 (e) "Qualifying person" means a Washington resident who applies forassistance and qualifies for a grant regardless of whether that personreceives a grant. (f) "Qualifying contribution" means money given by a light andpower business or a gas distribution business to a qualifyingorganization, exclusive of money received in the prior fiscal year fromits customers for the purpose of assisting other customers. (g) "Qualifying organization" means an entity that has acontractual agreement with the department of community, trade, andeconomic development to administer in a specified service area lowincome home energy assistance funds received from the federalgovernment and such other funds that may be received by the entity. (2) Subject to the limitations in this section, a light and powerbusiness or a gas distribution business may take a credit each fiscalyear against the tax imposed under this chapter. (a)(i) A credit may be taken for qualifying contributions if thedollar amount of qualifying contributions for the fiscal year in whichthe tax credit is taken is greater than one hundred twentyfive percentof the dollar amount of qualifying contributions given in fiscal year2000. (ii) If no qualifying contributions were given in fiscal year 2000,a credit shall be allowed for the first fiscal year that qualifyingcontributions are given. Thereafter, credit shall be allowed if thequalifying contributions given exceed one hundred twentyfive percentof qualifying contributions given in the first fiscal year. (iii) The amount of credit shall be fifty percent of the dollaramount of qualifying contributions given in the fiscal year in whichthe tax credit is taken. (b)(i) A credit may be taken for billing discounts if the dollaramount of billing discounts for the fiscal year in which the tax creditis taken is greater than one hundred twentyfive percent of the dollaramount of billing discounts given in fiscal year 2000. (ii) If no billing discounts were given in fiscal year 2000, acredit shall be allowed in the first fiscal year that billing discountsare given. Thereafter, credit shall be allowed if the dollar amount ofbilling discounts given exceeds one hundred twentyfive percent ofbilling discounts given in the first fiscal year. Official Print - 2 (iii) The amount of credit shall be fifty percent of the dollaramount of the billing discounts given in the fiscal year in which thetax credit is taken. (c) The total amount of credit that may be taken for qualifyingcontributions and billing discounts in a fiscal year is limited to thebase credit for the same fiscal year. (3)(a)(i) Except as provided in (a)(ii) of this subsection, thetotal amount of credit, statewide, that may be taken in any fiscal yearshall not exceed two million five hundred thousand dollars. (ii) The total amount of credit, statewide, that may be taken infiscal year 2007 shall not exceed five million five hundred thousanddollars. (b) By May 1st of each year starting in 2002, the department ofcommunity, trade, and economic development shall notify the departmentof revenue in writing of the grants received in the current fiscal yearby each light and power business and gas distribution business. (4)(a) Not later than June 1st of each year beginning in 2002, thedepartment shall publish the base credit for each light and powerbusiness and gas distribution business for the next fiscal year. (b) Not later than July 1st of each year beginning in 2002,application for credit must by made to the department including but notlimited to the following information: Billing discounts given by theapplicant in fiscal year 2000; qualifying contributions given by theapplicant in the prior fiscal year; the amount of money received in theprior fiscal year from customers for the purpose of assisting othercustomers; the base credit for the next fiscal year for the applicant;the qualifying contributions anticipated to be given in the next fiscalyear; and billing discounts anticipated to be given in the next fiscalyear. No credit under this section will be allowed to a light andpower business or gas distribution business that does not file theapplication by July 1st. (c) Not later than August 1st of each year beginning in 2002, thedepartment shall notify each applicant of the amount of credit that maybe taken in that fiscal year. (d) The balance of base credits not used by other light and powerbusinesses and gas distribution businesses shall be ratably distributedto applicants under the formula in subsection (1)(a) of this section. Official Print - 3 The total amount of credit that may be taken by an applicant is thebase credit plus any ratable portion of unused base credit. (5) The credit taken under this section is limited to the amount oftax imposed under this chapter for the fiscal year. The credit must beclaimed in the fiscal year in which the billing reduction is made. Anyunused credit expires. Refunds shall not be given in place of credits. (6) No credit may be taken for billing discounts made before July1, 2001. Within two weeks of May 8, 2001, the department of community,trade, and economic development shall notify the department of revenuein writing of the grants received in fiscal year 2001 by each light andpower business and gas distribution business. Within four weeks of May8, 2001, the department of revenue shall publish the base credit foreach light and power business and gas distribution business for fiscalyear 2002. Within eight weeks of May 8, 2001, application to thedepartment must be made showing the information required in subsection(4)(b) of this section. Within twelve weeks of May 8, 2001, thedepartment shall notify each applicant of the amount of credit that maybe taken in fiscal year 2002.NEW SECTION.Sec. This act takes effect July 1, 2006.HB 2644S AMDBy Senators Poulsen, PrenticeADOPTED 03/07/2006 On page 1, line 2 of the title, after RCW 82.16.0497; strike theremainder of the title and insert amending RCW 82.16.0497; andproviding an effective date.--- END --- Official Print - 4