SENATE BILL REPORT
SB 5825
This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent. |
As of February 10, 2009
Title: An act relating to modifying the rural county tax credit provided in chapter 82.62 RCW.
Brief Description: Modifying the rural county tax credit provided in chapter 82.62 RCW.
Sponsors: Senators Brown, King and Kilmer.
Brief History:
Committee Activity: Agriculture & Rural Economic Development: 2/10/09.
SENATE COMMITTEE ON AGRICULTURE & RURAL ECONOMIC DEVELOPMENT |
Staff: Sam Thompson (786-7413)
Background: Certain manufacturing, research and development, and computer-related businesses that locate or expand operations in rural counties may qualify for a business and occupation (B&O) tax credit for creating new jobs. For new positions with annual wages and benefits of $40,000 or less, a $2,000 credit is authorized. For new positions with annual wages and benefits greater than $40,000, a $4,000 credit is authorized. To qualify for the credit, businesses must create a new workforce or expand an existing workforce by a 15 percent average increase over the four calendar quarters after the quarter in which a position was filled.
Summary of Bill: Eligibility to qualify for the rural county B&O tax credit is revised by deleting the requirement that a business must expand an existing workforce by a 15 percent average increase over the four calendar quarters after the quarter in which a position was filled. Accordingly, a business need only expand an existing workforce to qualify.
The act applies to applications for credit received by the Department of Revenue on or after January 1, 2010.
Appropriation: None.
Fiscal Note: Requested on February 5, 2009.
Committee/Commission/Task Force Created: No.
Effective Date: The bill takes effect on January 1, 2010.