"NEW SECTION.  Sec. 1   Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
     (1) "Applicant" means a person applying for a tax deferral under this chapter.
     (2) "Department" means the department of revenue.
     (3) "Eligible investment project" means an investment project that: (a) Does not qualify as an eligible investment project under chapter 82.60 RCW; and (b) is located in a county with a population density of more than five hundred persons per square mile that does not contain a community empowerment zone designated under RCW 43.31C.020, and that is not one of the three most populous counties in this state.
     (4)(a) "Initiation of construction" means the date that a building permit is issued under the building code adopted under RCW 19.27.031 for:
     (i) Construction of the qualified building, if the underlying ownership of the building vests exclusively with the person receiving the economic benefit of the deferral;
     (ii) Construction of the qualified building, if the economic benefits of the deferral are passed to a lessee as provided in section 2 of this act; or
     (iii) Tenant improvements for a qualified building, if the economic benefits of the deferral are passed to a lessee as provided in section 2 of this act.
     (b) "Initiation of construction" does not include soil testing, site clearing and grading, site preparation, or any other related activities that are initiated before the issuance of a building permit for the construction of the foundation of the building.
     (c) If the investment project is a phased project, "initiation of construction" applies separately to each phase.
     (5) "Investment project" means an investment of twenty-five million dollars in qualified buildings, qualified machinery and equipment, or both, including labor and services rendered in the planning, installation, and construction of the project.
     (6) "Manufacturing" has the same meaning as "to manufacture" in RCW 82.04.120 and includes the activities of processors for hire.
     (7) "Person" has the meaning given in RCW 82.04.030.
     (8) "Qualified buildings" means construction of new structures, and expansion or renovation of existing structures for the purpose of increasing floor space or production capacity, used for renewable energy manufacturing, research and development, or both. "Qualified buildings" include plant offices, warehouses, or other facilities for the storage of raw material or finished goods, if such facilities are an essential or an integral part of a factory, plant, or laboratory used for renewable energy manufacturing, research and development, or both.
     (9) "Qualified machinery and equipment" means all industrial and research fixtures, equipment, and support facilities that are an integral and necessary part of a renewable energy manufacturing or research and development operation. "Qualified machinery and equipment" includes: Computers; software; data processing equipment; laboratory equipment; manufacturing components such as belts, pulleys, shafts, and moving parts; molds, tools, and dies; operating structures; and all equipment used to control or operate the machinery.
     (10) "Recipient" means a person receiving a tax deferral under this chapter.
     (11) "Renewable energy manufacturing" means the manufacturing of materials, components, or equipment for solar, wind, bioenergy, or geothermal energy systems.
     (12) "Research and development" means the development, refinement, testing, marketing, and commercialization of a product, service, or process related to renewable energy manufacturing before commercial sales have begun. As used in this subsection, "commercial sales" excludes sales of prototypes or sales for market testing if the total gross receipts from such sales of the product, service, or process do not exceed one million dollars.

NEW SECTION.  Sec. 2   (1) The lessor or owner of a qualified building is not eligible for a deferral under this chapter unless:
     (a) The underlying ownership of the buildings, machinery, and equipment vests exclusively in the same person; or
     (b)(i) The lessor by written contract agrees to pass the economic benefit of the deferral to the lessee in the form of reduced rent payments; and
     (ii) The lessee that receives the economic benefit of the deferral agrees in writing with the department to complete the annual survey under section 6 of this act.
     (2) The economic benefit of the deferral to the lessee may be evidenced by any type of payment, credit, or any other financial arrangement between the lessor or owner of the qualified building and the lessee.

NEW SECTION.  Sec. 3   If a building is used partly for renewable energy manufacturing or research and development and partly for other purposes, the applicable tax deferral must be determined by apportionment of the costs of construction under rules adopted by the department.

NEW SECTION.  Sec. 4   (1) Application for deferral of taxes under this chapter must be made before initiation of construction of the investment project or acquisition of machinery and equipment. The application must be made to the department in a form and manner prescribed by the department. The application must contain information regarding the location of the investment project, estimated or actual costs of the investment project, time schedules for completion and operation, and other information required by the department.
     (2) The department must rule on the application within sixty days. The department must keep a running total of all deferrals granted under this chapter during the 2009-2011 fiscal biennium.

NEW SECTION.  Sec. 5   (1) The department must issue a sales and use tax deferral certificate for state and local sales and use taxes imposed or authorized under chapters 82.08, 82.12, 82.14, and 81.104 RCW on each eligible investment project.
     (2) This section expires June 30, 2011.

NEW SECTION.  Sec. 6   (1)(a) The legislature finds that accountability and effectiveness are important aspects of setting tax policy. In order to make policy choices regarding the best use of limited state resources the legislature needs information on how a tax incentive is used.
     (b) Each recipient of a deferral granted under this chapter must complete an annual survey. If the economic benefits of the deferral are passed to a lessee as provided in section 2 of this act, the lessee must complete the annual survey and the applicant is not required to complete the annual survey. The survey is due by April 30th of the year following the calendar year in which the investment project is certified by the department as having been operationally complete and each of the seven succeeding calendar years. The department may extend the due date for timely filing of annual surveys under this section as provided in RCW 82.32.590. The survey must include the amount of tax deferred. The survey must also include the following information for employment positions in Washington:
     (i) The number of total employment positions;
     (ii) Full-time, part-time, and temporary employment positions as a percent of total employment;
     (iii) The number of employment positions according to the following wage bands: Less than thirty thousand dollars; thirty thousand dollars or greater, but less than sixty thousand dollars; and sixty thousand dollars or greater. A wage band containing fewer than three individuals may be combined with another wage band; and
     (iv) The number of employment positions that have employer-provided medical, dental, and retirement benefits, by each of the wage bands.
     (c) As part of the annual survey, the department may request additional information necessary to measure the results of, or determine eligibility for, the deferral program.
     (d) If the person filing a survey under this section did not file a survey with the department in the previous calendar year, the survey filed under this section must also include the employment, wage, and benefit information required under (b)(i) through (iv) of this subsection for the calendar year immediately preceding the preceding calendar year.
     (e)(i) Except as otherwise provided, all information collected under this subsection, except the amount of the tax deferral taken, is deemed taxpayer information under RCW 82.32.330. Information on the amount of tax deferral taken is not subject to the confidentiality provisions of RCW 82.32.330 and may be disclosed to the public upon request, except as otherwise provided in this subsection.
     (ii) If the amount of the tax deferral taken as reported on the survey is different than the amount actually taken or otherwise allowed by the department based on information known to the department, the amount actually taken or allowed may be disclosed.
     (iii) Recipients for whom the actual amount of the tax deferral taken is less than ten thousand dollars during the period covered by the survey may request the department to treat the amount of the tax savings as confidential under RCW 82.32.330.
     (f) The department must use the information from this section to prepare summary descriptive statistics by category. No fewer than three taxpayers may be included in any category. The department must report these statistics to the legislature each year by October 1st.
     (2)(a) If a recipient of the deferral fails to complete the annual survey required under subsection (1) of this section by the date due or any extension under RCW 82.32.590, twelve and one-half percent of the deferred tax is immediately due. If the economic benefits of the deferral are passed to a lessee as provided in section 2 of this act, the lessee will be responsible for payment to the extent the lessee has received the economic benefit. The department must assess interest, but not penalties, on the amounts due under this section. The interest must be assessed at the rate provided for delinquent taxes under chapter 82.32 RCW, and accrues until the amounts due are repaid.
     (b) A recipient who must repay deferred taxes under section 7(2) of this act because the department has found that an investment project is used for purposes other than renewable energy manufacturing or research and development is no longer required to file annual surveys under this section beginning on the date an investment project is used for nonqualifying purposes.

NEW SECTION.  Sec. 7   (1) Except as provided in subsection (2) of this section, taxes deferred under this chapter need not be repaid.
     (2) If, on the basis of the survey under section 6 of this act or other information, the department finds that an investment project is used for purposes other than renewable energy manufacturing or research and development at any time during the calendar year in which the investment project is certified by the department as having been operationally completed, or at any time during any of the seven succeeding calendar years, a portion of deferred taxes are immediately due according to the following schedule:

NEW SECTION.  Sec. 8   Chapter 82.32 RCW applies to the administration of this chapter.

NEW SECTION.  Sec. 9   Applications approved by the department under this chapter are not confidential and are subject to disclosure.

Sec. 10   RCW 82.32.590 and 2008 c 81 s 13 and 2008 c 15 s 7 are each reenacted and amended to read as follows:
     (1) If the department finds that the failure of a taxpayer to file an annual survey or annual report under section 6 of this act or RCW 82.04.4452, 82.32.5351, 82.32.650, 82.32.630, 82.32.610, 82.82.020, or 82.74.040 by the due date was the result of circumstances beyond the control of the taxpayer, the department shall extend the time for filing the survey or report. Such extension shall be for a period of thirty days from the date the department issues its written notification to the taxpayer that it qualifies for an extension under this section. The department may grant additional extensions as it deems proper.
     (2) In making a determination whether the failure of a taxpayer to file an annual survey or annual report by the due date was the result of circumstances beyond the control of the taxpayer, the department shall be guided by rules adopted by the department for the waiver or cancellation of penalties when the underpayment or untimely payment of any tax was due to circumstances beyond the control of the taxpayer.

Sec. 11   RCW 82.32.600 and 2008 c 81 s 14 and 2008 c 15 s 8 are each reenacted and amended to read as follows:
     (1) Persons required to file annual surveys or annual reports under section 6 of this act or RCW 82.04.4452, 82.32.5351, 82.32.545, 82.32.610, 82.32.630, 82.82.020, or 82.74.040 must electronically file with the department all surveys, reports, returns, and any other forms or information the department requires in an electronic format as provided or approved by the department. As used in this section, "returns" has the same meaning as "return" in RCW 82.32.050.
     (2) Any survey, report, return, or any other form or information required to be filed in an electronic format under subsection (1) of this section is not filed until received by the department in an electronic format.
     (3) The department may waive the electronic filing requirement in subsection (1) of this section for good cause shown.

NEW SECTION.  Sec. 12   A new section is added to chapter 82.04 RCW to read as follows:
     (1) In computing the tax imposed under this chapter, a renewable energy manufacturer may claim a credit for its eligible investment project expenditures occurring after the effective date of this act through June 30, 2014.
     (2) Any credits earned under this section must be accrued and carried forward and may not be used until July 1, 2011. The credit is equal to the amount of eligible investment project expenditures, multiplied by the rate of fifteen percent. Credit may be carried over and used until June 30, 2024. The credit claimed against taxes due for each calendar year must not exceed the amount of tax otherwise due under this chapter for the calendar year. Refunds may not be granted in the place of a credit.
     (3) Credits are available on a first in-time basis. The department must disallow any credits, or portion thereof, that would cause the total amount of credits claimed statewide under this section in any fiscal year to exceed the following limits: Two million five hundred thousand dollars for fiscal year 2012, two million five hundred thousand dollars for fiscal year 2013, five million dollars for fiscal year 2014, and five million dollars for each fiscal year thereafter until the fiscal year ending June 30, 2024. If the fiscal year limitation is reached, the department shall provide notification to persons claiming credits that the annual statewide limit has been met. The notice must indicate the amount of tax due and shall provide that the tax be paid within thirty days from the date of such notice. The department may not assess penalties and interest as provided in chapter 82.32 RCW on the amount due in the initial notice if the amount due is paid by the due date specified in the notice, or any extension thereof.      (4) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
     (a) "Eligible investment project" means an investment project that: (i) Does not qualify as an eligible investment project under chapter 82.60 RCW; and (ii) is located in a county with a population density of more than five hundred persons per square mile that does not contain a community empowerment zone designated under RCW 43.31C.020, and that is not one of the three most populous counties in this state.
     (b) "Eligible investment project expenditures" means actual expenditures for an eligible investment project, including labor and services rendered in the planning, installation, and construction of the project.
     (c) "Investment project" means a twenty-five million dollar investment in qualified buildings, qualified machinery and equipment, or both.
     (d) "Manufacturing" has the same meaning as "to manufacture" in RCW 82.04.120 and includes the activities of processors for hire.
     (e) "Person" has the meaning given in RCW 82.04.030.
     (f) "Qualified buildings" means construction of new structures, and expansion or renovation of existing structures for the purpose of increasing floor space or production capacity, used for renewable energy manufacturing, research and development, or both. "Qualified buildings" include plant offices, warehouses, or other facilities for the storage of raw material or finished goods, if such facilities are an essential or an integral part of a factory, plant, or laboratory used for renewable energy manufacturing, research and development, or both.
     (g) "Qualified machinery and equipment" means all industrial and research fixtures, equipment, and support facilities that are an integral and necessary part of a renewable energy manufacturing or research and development operation. "Qualified machinery and equipment" includes: Computers; software; data processing equipment; laboratory equipment; manufacturing components such as belts, pulleys, shafts, and moving parts; molds, tools, and dies; operating structures; and all equipment used to control or operate the machinery.
     (h) "Renewable energy manufacturing" means the manufacturing of materials, components, or equipment for solar, wind, bioenergy, or geothermal energy systems.
     (i) "Research and development" means the development, refinement, testing, marketing, and commercialization of a product, service, or process related to renewable energy manufacturing before commercial sales have begun. As used in this subsection, "commercial sales" excludes sales of prototypes or sales for market testing if the total gross receipts from such sales of the product, service, or process do not exceed one million dollars.
     (5) In addition to all other requirements under this title, a person claiming the credit under this section must file a complete annual report with the department under section 13 of this act.
     (6) Credit may not be claimed for expenditures for which a credit is claimed under RCW 82.04.4452.
     (7) This section expires June 30, 2024.

NEW SECTION.  Sec. 13   A new section is added to chapter 82.32 RCW to read as follows:
     (1)(a) Every person claiming a tax preference that requires a report under this section must file a complete annual report with the department. The report is due by April 30th of the year following any calendar year in which a person becomes eligible to claim the tax preference that requires a report under this section. The department may extend the due date for timely filing of annual reports under this section as provided in RCW 82.32.590.
     (b) The report must include information detailing employment, wages, and employer-provided health and retirement benefits for employment positions in Washington for the year that the tax preference was claimed. However, persons engaged in manufacturing commercial airplanes or components of such airplanes may report employment, wage, and benefit information per job at the manufacturing site for the year that the tax preference was claimed. The report must not include names of employees. The report must also detail employment by the total number of full-time, part-time, and temporary positions for the year that the tax preference was claimed.
     (c) Persons receiving the benefit of the tax preference provided by RCW 82.16.0421 or claiming any of the tax preferences provided by RCW 82.04.2909, 82.04.4481, 82.08.805, 82.12.805, or 82.12.022(5) must indicate on the annual report the quantity of product produced in this state during the time period covered by the report.
     (d) If a person filing a report under this section did not file a report with the department in the previous calendar year, the report filed under this section must also include employment, wage, and benefit information for the calendar year immediately preceding the calendar year for which a tax preference was claimed.
     (2) As part of the annual report, the department may request additional information necessary to measure the results of, or determine eligibility for, the tax preference.
     (3) Other than information requested under subsection (2) of this section, the information contained in an annual report filed under this section is not subject to the confidentiality provisions of RCW 82.32.330 and may be disclosed to the public upon request.
(4) Except as otherwise provided by law, if a person claims a tax preference that requires an annual report under this section but fails to submit a complete report by the due date or any extension under RCW 82.32.590, the department must declare the amount of the tax preference claimed for the previous calendar year to be immediately due and payable. The department must assess interest, but not penalties, on the amounts due under this subsection. The interest must be assessed at the rate provided for delinquent taxes under this chapter, retroactively to the date the tax preference was claimed, and accrues until the taxes for which the tax preference was claimed are repaid. Amounts due under this subsection are not subject to the confidentiality provisions of RCW 82.32.330 and may be disclosed to the public upon request.
     (5) The department must use the information from this section to prepare summary descriptive statistics by category. No fewer than three taxpayers may be included in any category. The department must report these statistics to the legislature each year by October 1st.
     (6) For the purposes of this section:
     (a) "Person" has the meaning provided in RCW 82.04.030 and also includes the state and its departments and institutions.
     (b) "Tax preference" has the meaning provided in RCW 43.136.021 and includes only the tax preferences requiring a survey under this section.

NEW SECTION.  Sec. 14   Sections 1 through 9 of this act constitute a new chapter in Title 82 RCW."