H-4272 _______________________________________________
HOUSE BILL NO. 1873
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State of Washington 50th Legislature 1988 Regular Session
By Representatives May, Sprenkle, D. Sommers, Brekke, Holland, Walker, Allen, Amondson, Pruitt, Kremen, Todd, Schoon, Leonard, Jesernig, R. King, Silver, Nealey, Doty, Miller, Spanel, Ebersole, Brough and Fox
Read first time 1/27/88 and referred to Committee on Environmental Affairs.
AN ACT Relating to capital improvements and equipment for the use of recovered materials; and adding new sections to chapter 82.04 RCW.
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 imposed by this chapter to manufacturers of products composed in major part of recovered materials, and to processors of recovered materials. The credit allowable shall be equal to twenty percent of the investment by the manufacturer in that calendar year in capital improvements and equipment used in the manufacture of such products, or by the processor in that calendar year in capital improvements and equipment used in processing recovered materials. To receive the credit, the taxpayer shall apply to the department of revenue for prior approval on such forms as the department may prescribe.
(2) The total credit granted under this section to a taxpayer in any one year shall not exceed the total tax imposed on the taxpayer under this chapter during the year. Any excess tax credit shall not be carried over to succeeding years.
(3) The department, after consulting with the department of ecology, shall adopt such rules as are necessary to implement this section.
(4) The sum of the tax credits allowed under this section for any one year shall not exceed five hundred thousand dollars. No tax credit may be claimed under this section after June 30, 1993.
NEW SECTION. Sec. 2. A new section is added to chapter 82.04 RCW to read as follows:
"Recovered material" as used in section 1 of this act means:
(1) "Post consumer waste" which is:
(a) Paper, paperboard, and fibrous wastes from buildings such as retail stores, office buildings, homes, after the wastes have passed through their end-usage as a consumer item, including: Used corrugated boxes, old newspapers, old magazines, mixed waste paper, tabulating cards, and used cordage; and
(b) All paper, paperboard, and fibrous wastes that enter and are collected from municipal solid waste; and
(c) All other items containing plastics, yard waste, metals, glass, rubber, oil, or any other material that is suitable as feedstock in product manufacture; and
(2) "Secondary waste" including manufacturing and other wastes such as:
(a) Dry paper and paperboard waste generated after completion of the papermaking process, that is, those manufacturing operations up to and including the cutting and trimming of the paper machine reel into smaller rolls or rough sheets including: Envelope cuttings, bindery trimmings, and other paper and paperboard waste resulting from printing, cutting, forming, and other converting operations; bag, box, and carton manufacturing wastes; and butt rolls, mill wrappers, and rejected unused stock;
(b) Finished paper and paperboard from obsolete inventories of paper and paperboard manufacturers, merchants, wholesalers, dealers, printers, converters, or others;
(c) Wastes generated by the conversion of goods made from fibrous material, that is, waste rope from cordage manufacture, textile mill waste, and cuttings; and
(d) Fibers recovered from waste water which otherwise would enter the waste stream.