BILL REQ. #:  Z-0485.1 

Read first time 01/21/09.   Referred to Committee on Transportation.

     AN ACT Relating to modifying the existing commute trip reduction tax credit; amending RCW 82.70.040 and 82.70.025; providing an effective date; and declaring an emergency.

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

Sec. 1   RCW 82.70.040 and 2005 c 297 s 5 are each amended to read as follows:
     (1)(a) The department shall keep a running total of all credits allowed under RCW 82.70.020 during each fiscal year. The department shall not allow any credits that would cause the total amount allowed to exceed ((two)) one million ((seven)) 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 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 a credit is reduced under this subsection, the amount of the reduction may not be carried forward and claimed in subsequent fiscal years.
     (2)(a) A tax credit under this section must be claimed against taxes due for the calendar year in which the credit was approved. Tax credits under RCW 82.70.020 may not be claimed in excess of the amount of tax otherwise due under chapter 82.04 or 82.16 RCW.
     (b)(((i) Through June 30, 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 elect to 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 RCW 82.70.025 in the year in which the deferred tax credits will be used. This application is subject to the provisions of subsection (1) of this section for the 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 any credits approved by the department after June 30, 2005, and before July 1, 2009, the approved credit may be carried forward ((to)) and claimed, through June 30, 2013, against taxes due in subsequent years until used. Credits carried forward as authorized by this subsection are subject to the limitation in subsection (1)(a) of this section for the fiscal year for which the credits were originally approved.
     (3) No person shall be approved for tax credits under RCW 82.70.020 in excess of ((two)) one hundred thousand dollars in any fiscal year. This limitation does not apply to credits carried forward from prior years under subsection (2)(b) of this section.
     (4) No person may claim tax credits after June 30, 2013.
     (5) Credits may not be carried forward 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.

Sec. 2   RCW 82.70.025 and 2005 c 297 s 2 are each amended 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) No person may be approved for credit under this chapter more than twice during the period between January 1, 2010, and January 31, 2013.
     (3) The department shall rule on the application within sixty days of the deadline provided in subsection (1) of this section.
     (((3))) (4) 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))) (5) After an application is approved and tax credit granted, no increase in the credit shall be allowed.

NEW SECTION.  Sec. 3   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, 2009.