BILL REQ. #: H-0942.2
| State of Washington | 62nd Legislature | 2011 Regular Session |
Read first time 01/21/11. Referred to Committee on Ways & Means.
AN ACT Relating to encouraging businesses to hire unemployed workers through a business and occupation tax credit; adding a new section to chapter 82.04 RCW; and declaring an emergency.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
NEW SECTION. Sec. 1 A new section is added to chapter 82.04 RCW
to read as follows:
(1) A credit is allowed against the tax due under this chapter for
new qualified employment positions created as provided in this section.
(2) The credit equals:
(a) Four thousand dollars for each qualified employment position
with wages and benefits greater than forty thousand dollars annually,
and for which the business offers a health care plan.
(b) Two thousand dollars for each qualified employment position
with wages and benefits less than forty thousand dollars annually, and
for which the business offers a health care plan.
(3) The credit for a qualified new employment position may be taken
in the reporting period when the position is filled but the position
must be maintained for four calendar quarters beginning with the
calendar quarter subsequent to the calendar quarter in which the
position is filled.
(4) The credit may be used against any tax due under this chapter,
and may be carried over until used. No refunds may be granted for
credits under this section.
(5) The employment security department must provide such
information needed for the department to certify all determinations of
employment under this section.
(6) The definitions in this subsection apply throughout this
section unless the context clearly requires otherwise.
(a) "Eligible business" means a business with one hundred or fewer
employees at the time of hiring the first qualified employment
position.
(b) "Health care plan" means any "employee welfare benefit plan" as
defined by the employee retirement income security act of 1974, 29
U.S.C. Sec. 1001 et seq., and any "health plan" or "health benefit
plan" as defined in RCW 48.43.005, for the purpose of providing for its
employees or their beneficiaries, through the purchase of insurance or
otherwise, health care services. For the purposes of this section,
"health care services" means services offered or provided by health
care facilities and health care providers relating to the prevention,
cure, or treatment of illness, injury, or disease.
(c) "New employee" means a person who has been unemployed for at
least four consecutive weeks immediately preceding the start of
employment.
(d) "Qualified new employment position" means a permanent full-time
new employee employed in the eligible business in Washington providing
at least thirty hours of work per week.
(7) The department must keep a running total of all credits allowed
under this chapter during each fiscal year. The department may not
allow any credits, if the allowance of which would cause the total to
exceed ten million dollars in any fiscal year. If all or part of an
application for credit is disallowed under this subsection, the
disallowed portion must be carried over to the next fiscal year.
However, the carryover into the next fiscal year is only permitted to
the extent that the cap for the next fiscal year is not exceeded.
(8) In addition to all other requirements under this title, a
person claiming the credit under this section must file a complete
annual survey with the department under RCW 82.32.585.
(9) If, on the basis of a survey required under subsection (8) of
this section or other information, the department finds that a person
is not eligible for tax credit claimed under this section, the amount
of taxes for which a credit has been claimed is immediately due.
(10) No applications may be accepted after June 30, 2013.
NEW SECTION. Sec. 2 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
immediately.