BILL REQ. #:  S-0441.1 

Read first time 01/15/13.   Referred to Committee on Ways & Means.

     AN ACT Relating to extending the tax credit expiration date for certain contributions made to electric utility rural economic development revolving funds; and amending RCW 82.16.0491.

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

Sec. 1   RCW 82.16.0491 and 2008 c 131 s 4 are each amended to read as follows:
     (1) The following definitions apply to this section:
     (a) "Qualifying project" means a project designed to achieve job creation or business retention, to add or upgrade nonelectrical infrastructure, to add or upgrade health and safety facilities, to accomplish energy and water use efficiency improvements, including renewable energy development, or to add or upgrade emergency services in any designated qualifying rural area.
     (b) "Qualifying rural area" means:
     (i) A rural county as defined in RCW 82.14.370; or
     (ii) Any geographic area in the state that receives electricity from a light and power business with twelve thousand or fewer customers.
     (c) "Electric utility rural economic development revolving fund" means a fund devoted exclusively to funding qualifying projects in qualifying rural areas.
     (d) "Local board" is (i) a board of directors with at least, but not limited to, three members representing local businesses and community groups who have been appointed by the sponsoring electric utility to oversee and direct the activities of the electric utility rural economic development revolving fund; or (ii) a board of directors of an existing associate development organization serving the qualifying rural area who have been designated by the sponsoring electrical utility to oversee and direct the activities of the electric utility rural economic development revolving fund.
     (2) A light and power business ((shall be)) is allowed a credit against taxes due under this chapter in an amount equal to fifty percent of contributions made in any fiscal year directly to an electric utility rural economic development revolving fund. The credit ((shall)) must be taken in a form and manner as required by the department. The credit under this section ((shall)) may not exceed twenty-five thousand dollars per fiscal year per light and power business. The credit may not exceed the tax that would otherwise be due under this chapter. Refunds ((shall)) may not be granted in the place of credits. Expenditures not used to earn a credit in one fiscal year may not be used to earn a credit in subsequent years, except that this limitation does not apply to expenditures made between January 1, 2004, and March 31, 2004, which expenditures may be used to earn a credit through December 30, 2004.
     (3) The right to earn tax credits under this section expires June 30, ((2011)) 2018.
     (4) To qualify for the credit in subsection (2) of this section, the light and power business ((shall)) must establish, or have a local board establish with the business's contribution, an electric utility rural economic development revolving fund which is governed by a local board whose members ((shall)) must reside or work in the qualifying rural area served by the light and power business. Expenditures from the electric utility rural economic development revolving fund ((shall)) must be made solely on qualifying projects, and the local board ((shall have)) has authority to determine all criteria and conditions for the expenditure of funds from the electric utility rural economic development revolving fund, and for the terms and conditions of repayment.
     (5) Any funds repaid to the electric utility rural economic development revolving fund by recipients ((shall)) must be made available for additional qualifying projects.
     (6) If at any time the electric utility rural economic development revolving fund is dissolved, any moneys claimed as a tax credit under this section ((shall)) must either be granted to a qualifying project or refunded to the state within two years of termination.
     (7) The total amount of credits that may be used in any fiscal year ((shall)) may not exceed three hundred fifty thousand dollars in any fiscal year. The department ((shall)) must allow the use of earned credits on a first-come, first-served basis. Unused earned credits may be carried over to subsequent years.
     (8) The following provisions apply to expenditures under subsection (2) of this section made between January 1, 2004, and March 31, 2004:
     (a) Credits earned from such expenditures are not considered in computing the statewide limitation set forth in subsection (7) of this section for the period July 1, 2004, through December 31, 2004; and
     (b) For the fiscal year ending June 30, 2005, the credit allowed under this section for light and power businesses making expenditures is limited to thirty-seven thousand five hundred dollars.