S-2490               _______________________________________________

                                         SUBSTITUTE SENATE BILL NO. 6075

                        _______________________________________________

State of Washington                               51st Legislature                              1989 Regular Session

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

Read first time 4/3/89.

AN ACT Relating to capital improvements at institutions of higher education; adding a new section to chapter 82.04 RCW; and adding a new section to chapter 28B.10 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:

          In computing tax under this chapter, there is allowed a credit against the tax equal to fifty percent of the amount of any donation to a state institution of higher education for capital improvements.  For any nonmonetary donation, the amount of the credit shall equal fifty percent of the fair market value of the donation.  If the amount of the credit exceeds the tax liability under this chapter, any excess may be carried forward to subsequent years.  No tax credit may be claimed under this section until the capital improvement has been approved and funds have been appropriated pursuant to section 2 of this act.  The department of revenue shall by rule establish the procedure by which the credit is granted.

          "Institutions of higher education," as used in this section, has the meaning ascribed in RCW 28B.10.016.

NEW SECTION. Sec. 2.  A new section is added to chapter 28B.10 RCW to read as follows:

          Subject to appropriation and project approval by the legislature, the state shall provide matching funds in an amount equal to the value of any donation from private sources for capital improvements at institutions of higher education.