SENATE BILL REPORT

SB 6075

BYSenators Bluechel and McDonald

Authorizing tax credits for certain donations to institutions of higher education.

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)

                  April 4, 1989

AS REPORTED BY COMMITTEE ON WAYS & MEANS, APRIL 3, 1989

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 approved by the Department of Revenue and until the project has been approved and matching funds have been appropriated by the Legislature.

EFFECT OF PROPOSED SUBSTITUTE:

Instead of Department of Revenue approval, the department is required to establish a procedure by which the credit is granted.

Appropriation:    none

Revenue:    yes

Fiscal Note:      requested March 13, 1989

Senate Committee - Testified: No one