BILL REQ. #: H-1863.1
| State of Washington | 62nd Legislature | 2011 Regular Session |
READ FIRST TIME 02/17/11.
AN ACT Relating to exempting certain manufacturing research and development activities from business and occupation taxation; adding a new section to chapter 82.04 RCW; and providing an effective date.
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) This chapter does not apply to the value of products
manufactured pursuant to a licensing agreement entered into on or after
July 1, 2011, but before July 1, 2015, with the University of
Washington or Washington State University when such products are the
result of research and development activities conducted by either
university or both. This exemption only applies during the first five
years of production of the product.
(b) A person claiming an exemption under this section must keep and
maintain records for the period required by RCW 82.32.070 establishing
his or her right to the exemption. In addition, the person claiming
the exemption must file a complete annual survey with the department
under RCW 82.32.585.
(2) Beginning in 2014, the department, in consultation with the
University of Washington and Washington State University, as
applicable, must review the tax exemption program created under this
section and report its findings to the governor and the appropriate
committees of the legislature. The report is required by December 1st
of the year following any year in which one or more persons claim tax
exemptions under this section. The report must include the amount of
the tax revenue forgone, the number of businesses claiming the
exemption, the number of employment positions created by these
businesses, the number of new products or research projects, and the
number of trademarks, patents, and copyrights associated with the
products manufactured under the applicable licensing agreement.
(3) For the purposes of this section, "research and development"
has the same meaning as provided in RCW 82.63.010.