H-1306.1

SUBSTITUTE HOUSE BILL 1370


State of Washington	64th Legislature	2015 Regular Session

By House Community Development, Housing & Tribal Affairs (originally sponsored by Representatives Wylie, Nealey, Manweller, Van De Wege, Haler, Appleton, Zeiger, Tharinger, Klippert, Vick, and S. Hunt)

READ FIRST TIME 02/05/15.

AN ACT Relating to increasing the total amount of tax credits allowed under the Washington main street program; amending RCW 82.73.030; and creating a new section.

NEW SECTION. Sec. 1. (1) This section is the tax preference performance statement for the tax preference contained in section 2 of this act. This performance statement is only intended to be used for subsequent evaluation of the tax preference. It is not intended to create a private right of action by any party or be used to determine eligibility for preferential tax treatment.

(2) The legislature categorizes this tax preference as one intended to promote contributions to main street programs and enhance community and economic revitalization and development of main street business districts under categories as indicated in RCW 82.32.808(2) (a) and (f).

(3) It is the legislature's specific public policy objective to support and work in concert with main street programs to accomplish community and economic revitalization and development of business districts as specified in RCW 43.360.005. It is the legislature's intent to provide tax credits to businesses in main street communities to promote contributions to such programs as provided in RCW 82.73.030, in order to maintain the economic viability of rural downtown areas, thereby ensuring the growth and retention of small business in rural communities.

(4) The joint legislative audit and review committee must perform an economic impact report to the legislature to provide the information necessary to measure the effectiveness of this act.

(5) In order to obtain the data necessary to perform the review under this section, the joint legislative audit and review committee may refer to data collected by the department of archaeology and historic preservation.

(1) Subject to the limitations in this chapter, a credit is allowed against the tax imposed by chapters 82.04 and 82.16 RCW for approved contributions that are made by a person to a program or the main street trust fund.

(3) The department may not approve credit with respect to a program in a city or town with a population of one hundred ninety thousand persons or more.

(4) The department ((shall))must keep a running total of all credits approved under this chapter for each calendar year. The department ((shall))may not approve any credits under this section that would cause the total amount of approved credits statewide to exceed ((one))three million ((five hundred thousand)) dollars in any calendar year.

(5) The total credits allowed under this chapter for contributions made to each program may not exceed ((one))two hundred thousand dollars in a calendar year. The total credits allowed under this chapter for a person may not exceed ((two hundred fifty))five hundred thousand dollars in a calendar year.

(6) The credit may be claimed against any tax due under chapters 82.04 and 82.16 RCW only in the calendar year immediately following the calendar year in which the credit was approved by the department and the contribution was made to the program or the main street trust fund. Credits may not be carried over to subsequent years. No refunds may be granted for credits under this chapter.

(7) The total amount of the credit claimed in any calendar year by a person may not exceed the lesser amount of the approved credit, or seventy-five percent of the amount of the contribution that is made by the person to a program and fifty percent of the amount of the contribution that is made by the person to the main street trust fund, in the prior calendar year.