SENATE BILL REPORT

SSB 6075

BYSenate Committee on Ways & Means (originally sponsored by Senators Bluechel and McDonald)

Authorizing tax credits and matching funds donations to higher education institutions.

Senate Committee on Ways & Means

Senate Hearing Date(s):April 3, 1989

Majority Report:  That Substitute Senate Bill No. 6075 be substituted therefor, and the substitute bill do pass.

      Signed by McDonald, Chairman; Craswell, Vice Chairman; Amondson, Bailey, Bluechel, Cantu, Hayner, Johnson, Lee, Saling, Smith, Williams.

Senate Staff:Terry Wilson (786-7715)

                  February 20, 1990

AS OF FEBRUARY 20, 1990

BACKGROUND:

In other parts of the country, mutual benefits have accrued to institutions of higher education and private companies by jointly financing capital improvements for the institutions of higher education.  Encouraging donations for capital purposes from private companies may foster cooperation between academic and entrepreneurial endeavors and help meet the capital needs of the state's colleges and universities.

SUMMARY:

A business and occupation tax credit is authorized for donations to state institutions of higher education for capital improvements equal to 50 percent of the value of the donation.  No credit may be claimed until the project has been approved and matching funds have been appropriated by the Legislature.

The Department of Revenue is required to establish a procedure by which the credit is granted.

Appropriation:    none

Revenue:    yes

Fiscal Note:      available

Senate Committee - Testified: No one