H-0938.1  _______________________________________________

                          HOUSE BILL 1474

          _______________________________________________

State of Washington      56th Legislature     1999 Regular Session

By Representatives Gombosky, Benson, Wood, Morris, D. Sommers, Schindler, Crouse, Miloscia, Eickmeyer, Veloria, Kessler, Linville, Kenney, Hatfield, Grant, Conway, Wolfe, Hurst, Santos and Lantz

Read first time 01/26/1999.  Referred to Committee on Economic Development, Housing & Trade.

Increasing economic opportunity in economically distressed communities through the use of tax credits.

    AN ACT Relating to a pilot project to assist small businesses in economically distressed areas; adding a new section to chapter 82.04 RCW; creating new sections; making appropriations; and providing an expiration date.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION. Sec. 1.  The legislature finds that there is a need to increase economic opportunity in economically distressed communities.  The legislature further finds that efforts to increase economic opportunity for residents of economically distressed communities must involve a collaborative effort between community and business development agencies, individual businesses, financial institutions, public sector agencies, institutions of higher education, and community residents.  It is the intent of the legislature to support institutions of higher education in the establishment of collaborative efforts to provide technical assistance designed to increase economic opportunities for residents of economically distressed communities.

NEW SECTION. Sec. 2.  (1) There is established a joint pilot project, between the University of Washington's business and economic development program and Washington State University's small business development center, designed to provide technical assistance to small business in economically distressed communities.

    (2) The purposes of the project are to:

    (a) Increase technical assistance to small businesses in both urban and rural communities of the state;

    (b) Provide additional opportunities for students participating in the project to apply educational learning while assisting small businesses;

    (c) Identify key predictors of success for businesses in economically distressed communities; and

    (d) Develop models that can be replicated in other areas of the state to assist small businesses.

NEW SECTION. Sec. 3.  A new section is added to chapter 82.04 RCW to read as follows:

    (1) There may be credited against the tax imposed by this chapter, the value of a contribution to a qualified institution of higher education for the purpose of increasing business and economic development opportunities for residents in distressed areas, for a business subject to taxation under this chapter.

    (2) The credit allowed under this section is limited to an amount equal to one hundred percent of the value of the contribution.  The total credits allowed under this section shall not exceed one hundred thousand dollars per calendar year.

    (3) Prior to claiming the credit under this section, the business must obtain approval of the proposed contribution from the qualified institution of higher education and the department of revenue.  The request of the business for approval must include a description of the proposed contribution and an estimate of the value of the proposed contribution.

    (4) As used in this section:

    (a) "Contribution" means either cash or other in-kind contributions or both.

    (b) "Qualified institution of higher education" means the University of Washington or Washington State University.

    (5) This section shall expire on December 31, 2002.

NEW SECTION. Sec. 4.  The sum of one hundred thousand dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 2000, from the general fund to the University of Washington for the purposes of section 2 of this act.  No portion of the appropriation under this section shall be used to pay indirect costs of the University of Washington or Washington State University.

NEW SECTION. Sec. 5.  The sum of one hundred thousand dollars, or as much thereof as may be necessary, is appropriated for the fiscal year ending June 30, 2001, from the general fund to the University of Washington for the purposes of section 2 of this act.  No portion of the appropriation under this section shall be used to pay indirect costs of the University of Washington or Washington State University.

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