H-1447.1 _______________________________________________
HOUSE BILL 2020
_______________________________________________
State of Washington 53rd Legislature 1993 Regular Session
By Representatives Mastin, Grant and Kessler
Read first time 02/22/93. Referred to Committee on Revenue.
AN ACT Relating to tax credits; and amending RCW 82.62.010.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
Sec. 1. RCW 82.62.010 and 1988 c 42 s 17 are each amended to read as follows:
Unless the context clearly requires otherwise, the definitions in this section apply throughout this chapter.
(1) "Applicant" means a person applying for a tax credit under this chapter.
(2) "Department" means the department of revenue.
(3) "Eligible area" means: (a) A
county in which the average level of unemployment for the three years before
the year in which an application is filed under this chapter exceeds the
average state unemployment for those years by twenty percent; ((or)) (b)
a metropolitan statistical area, as defined by the office of federal
statistical policy and standards, United States department of commerce, in
which the average level of unemployment for the calendar year immediately
preceding the year in which an application is filed under this chapter exceeds
the average state unemployment for such calendar year by twenty percent; or
(c) a county or portion of a county adjacent to an eligible area as described
in (a) or (b) of this subsection, but only for otherwise eligible businesses if
at least fifty percent of the employees of that business reside within an
eligible area described in (a) or (b) of this subsection. Applications
under ((this subsection (3)))(b) of this subsection shall be
filed by April 30, 1989.
(4)(a) "Eligible business project" means manufacturing or research and development activities which are conducted by an applicant in an eligible area at a specific facility: PROVIDED, That the applicant's average full-time qualified employment positions at the specific facility will be at least fifteen percent greater in the year for which the credit is being sought than the applicant's average full-time qualified employment positions at the same facility in the immediately preceding year.
(b) "Eligible business project" does not include any portion of a business project undertaken by a light and power business as defined in RCW 82.16.010(5) or that portion of a business project creating qualified full-time employment positions outside an eligible area or those recipients of a sales tax deferral under chapter 82.61 RCW.
(5) "Manufacturing" means all activities of a commercial or industrial nature wherein labor or skill is applied, by hand or machinery, to materials so that as a result thereof a new, different, or useful substance or article of tangible personal property is produced for sale or commercial or industrial use and shall include the production or fabrication of specially made or custom made articles. "Manufacturing" also includes computer programming, the production of computer software, and other computer-related services, and the activities performed by research and development laboratories and commercial testing laboratories.
(6) "Person" has the meaning given in RCW 82.04.030.
(7) "Qualified employment position" means a permanent full-time employee employed in the eligible business project during the entire tax year.
(8) "Tax year" means the calendar year in which taxes are due.
(9) "Recipient" means a person receiving tax credits under this chapter.
(10) "Research and development" means the development, refinement, testing, marketing, and commercialization of a product, service, or process before commercial sales have begun. As used in this subsection, "commercial sales" excludes sales of prototypes or sales for market testing if the total gross receipts from such sales of the product, service, or process do not exceed one million dollars.
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