BILL REQ. #:  S-3690.1 

Read first time 01/18/10.   Referred to Committee on Economic Development, Trade & Innovation.

     AN ACT Relating to requiring leadership in energy and environmental design standards for certain excise tax credit eligibility; amending RCW 82.60.040, 82.60.030, 82.63.030, 82.74.030, 82.75.030, and 82.82.030; repealing RCW 82.60.050; and providing expiration dates.

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

Sec. 1   RCW 82.60.040 and 2004 c 25 s 4 are each amended to read as follows:
     (1) Subject to subsection (2) of this section, the department ((shall)) must issue a sales and use tax deferral certificate for state and local sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW on each eligible investment project that is located in an eligible area as defined in RCW 82.60.020.
     (2) The department must issue a certificate under subsection (1) of this section to defer:
     (a) One hundred percent of sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW, only if the construction of all qualified buildings within the eligible investment project has received a platinum rating under the United States' green building council's leadership in energy and environmental design 2009 new construction and major renovation rating system, as determined by the department of commerce;
     (b) Seventy-five percent of sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW, only if the construction of all qualified buildings within the eligible investment project has received at least a gold rating under the United States' green building council's leadership in energy and environmental design 2009 new construction and major renovation rating system, as determined by the department of commerce;
     (c) Fifty percent of sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW, only if the construction of all qualified buildings within the eligible investment project has received at least a silver rating under the United States' green building council's leadership in energy and environmental design 2009 new construction and major renovation rating system, as determined by the department of commerce; and
     (d) Twenty-five percent of sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW, if the construction of all qualified buildings within the eligible investment project has not received at least a silver rating under the United States' green building council's leadership in energy and environmental design 2009 new construction and major renovation rating system, as determined by the department of commerce.
     (3) The department ((shall)) must keep a running total of all deferrals granted under this chapter during each fiscal biennium.
     (((3))) (4) This section expires July 1, ((2010)) 2012.

Sec. 2   RCW 82.60.030 and 1994 sp.s. c 1 s 2 are each amended to read as follows:
     (1) Application for deferral of taxes under this chapter must be made before initiation of the construction of the investment project or acquisition of equipment or machinery. The application ((shall)) must be made to the department in a form and manner prescribed by the department. The application ((shall)) must contain information regarding the location of the investment project, the applicant's average employment in the state for the prior year, estimated or actual new employment related to the project, estimated or actual wages of employees related to the project, estimated or actual costs, time schedules for completion and operation, and other information required by the department. The department ((shall)) must rule on the application within sixty days.
     (2) This section expires July 1, 2012.

Sec. 3   RCW 82.63.030 and 2008 c 15 s 4 are each amended to read as follows:
     (1) ((Except as provided in subsection (2))) Subject to the conditions of this section, the department ((shall)) must issue a sales and use tax deferral certificate for state and local sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW on each eligible investment project.
     (2) The department must issue a certificate under subsection (1) of this section to defer:
     (a) One hundred percent of sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW, only if the construction of all qualified buildings within the eligible investment project has received a platinum rating under the United States' green building council's leadership in energy and environmental design 2009 new construction and major renovation rating system, as determined by the department of commerce;
     (b) Seventy-five percent of sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW, only if the construction of all qualified buildings within the eligible investment project has received at least a gold rating under the United States' green building council's leadership in energy and environmental design 2009 new construction and major renovation rating system, as determined by the department of commerce;
     (c) Fifty percent of sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW, only if the construction of all qualified buildings within the eligible investment project has received at least a silver rating under the United States' green building council's leadership in energy and environmental design 2009 new construction and major renovation rating system, as determined by the department of commerce; and
     (d) Twenty-five percent of sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW, if the construction of all qualified buildings within the eligible investment project has not received at least a silver rating under the United States' green building council's leadership in energy and environmental design 2009 new construction and major renovation rating system, as determined by the department of commerce.
     (3) No certificate may be issued for an investment project that has already received a deferral under chapter 82.60 RCW or this chapter, except that an investment project for qualified research and development that has already received a deferral may also receive an additional deferral certificate for adapting the investment project for use in pilot scale manufacturing.
     (((3))) (4) This section ((shall)) expires January 1, 2015.

Sec. 4   RCW 82.74.030 and 2006 c 354 s 7 are each amended to read as follows:
     (1) Subject to subsection (2) of this section, the department ((shall)) 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, and 82.14 RCW on each eligible investment project if the investment project is undertaken for the purpose of fresh fruit and vegetable processing, dairy product manufacturing, seafood product manufacturing, cold storage warehousing, or research and development.
     (2) The department must issue a certificate under subsection (1) of this section to defer:
     (a) One hundred percent of sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW, only if the construction of all qualified buildings within the eligible investment project has received a platinum rating under the United States' green building council's leadership in energy and environmental design 2009 new construction and major renovation rating system, as determined by the department of commerce;
     (b) Seventy-five percent of sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW, only if the construction of all qualified buildings within the eligible investment project has received at least a gold rating under the United States' green building council's leadership in energy and environmental design 2009 new construction and major renovation rating system, as determined by the department of commerce;
     (c) Fifty percent of sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW, only if the construction of all qualified buildings within the eligible investment project has received at least a silver rating under the United States' green building council's leadership in energy and environmental design 2009 new construction and major renovation rating system, as determined by the department of commerce; and
     (d) Twenty-five percent of sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW, if the construction of all qualified buildings within the eligible investment project has not received at least a silver rating under the United States' green building council's leadership in energy and environmental design 2009 new construction and major renovation rating system, as determined by the department of commerce.
     (3) This section expires July 1, 2012.

Sec. 5   RCW 82.75.030 and 2006 c 178 s 4 are each amended to read as follows:
     (1) Subject to subsection (2) of this section, the department ((shall)) must issue a sales and use tax deferral certificate for state and local sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW for each eligible investment project.
     (2) The department must issue a certificate under subsection (1) of this section to defer:
     (a) One hundred percent of sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW, only if the construction of all qualified buildings within the eligible investment project has received a platinum rating under the United States' green building council's leadership in energy and environmental design 2009 new construction and major renovation rating system, as determined by the department of commerce;
     (b) Seventy-five percent of sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW, only if the construction of all qualified buildings within the eligible investment project has received at least a gold rating under the United States' green building council's leadership in energy and environmental design 2009 new construction and major renovation rating system, as determined by the department of commerce;
     (c) Fifty percent of sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW, only if the construction of all qualified buildings within the eligible investment project has received at least a silver rating under the United States' green building council's leadership in energy and environmental design 2009 new construction and major renovation rating system, as determined by the department of commerce; and
     (d) Twenty-five percent of sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW, if the construction of all qualified buildings within the eligible investment project has not received at least a silver rating under the United States' green building council's leadership in energy and environmental design 2009 new construction and major renovation rating system, as determined by the department of commerce.
     (3) No certificate may be issued for an investment project that has already received a deferral under chapter 82.60 or 82.63 RCW or this chapter.
     (((3))) (4) The department ((shall)) must keep a running total of all deferrals granted under this chapter during each fiscal biennium.
     (((4))) (5) This section expires January 1, 2017.

Sec. 6   RCW 82.82.030 and 2008 c 15 s 3 are each amended to read as follows:
     (1) Subject to the conditions of this section, the department must issue a sales and use tax deferral certificate for state and local sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW on each eligible investment project meeting the requirements of this chapter.
     (2) The department must issue a certificate under subsection (1) of this section to defer:
     (a) One hundred percent of sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW, only if the construction of all qualified buildings within the eligible investment project has received a platinum rating under the United States' green building council's leadership in energy and environmental design 2009 new construction and major renovation rating system, as determined by the department of commerce;
     (b) Seventy-five percent of sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW, only if the construction of all qualified buildings within the eligible investment project has received at least a gold rating under the United States' green building council's leadership in energy and environmental design 2009 new construction and major renovation rating system, as determined by the department of commerce;
     (c) Fifty percent of sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW, only if the construction of all qualified buildings within the eligible investment project has received at least a silver rating under the United States' green building council's leadership in energy and environmental design 2009 new construction and major renovation rating system, as determined by the department of commerce; and
     (d) Twenty-five percent of sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW, if the construction of all qualified buildings within the eligible investment project has not received at least silver rating under the United States' green building council's leadership in energy and environmental design 2009 new construction and major renovation rating system, as determined by the department of commerce.
     (3) No certificate may be issued for an investment project that has already received a deferral under chapter 82.60 or 82.63 RCW or this chapter, except that an investment project for qualified research and development that has already received a deferral may also receive an additional deferral certificate for adapting the investment project for use in pilot scale manufacturing.
     (((3))) (4) The department must keep a running total of all deferrals granted under this chapter during each fiscal biennium.
     (((4))) (5) The number of eligible investment projects for which the benefits of this chapter will be allowed is limited to two per biennium. The department must approve deferral certificates for completed applications on a first in-time basis. During any biennium, only one deferral certificate may be issued per community empowerment zone.

NEW SECTION.  Sec. 7   RCW 82.60.050 (Expiration of RCW 82.60.030 and 82.60.040) and 2004 c 25 s 6, 1994 sp.s. c 1 s 7, 1993 sp.s. c 25 s 404, 1988 c 41 s 5, & 1985 c 232 s 10 are each repealed.