S-1417

AN ACT Relating to public utility tax credits for energy assistance programs; and adding a new section to chapter 82.16 RCW.

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

NEW SECTION. Sec. 1. A new section is added to chapter 82.16 RCW to read as follows:

(1) Unless the context clearly requires otherwise, the definitions in this subsection apply throughout this section.

(a) "Qualifying grant" means a grant provided directly, or through the department of community, trade, and economic development, to an organization that has a contractual agreement with the department of community, trade, and economic development to provide low-income energy assistance programs for a specified service area.

(b) "Low-income energy assistance programs" means energy assistance programs for low-income households as defined on the effective date of this act by the federal department of health and human services.

(c) "Specified service area" means a service area designated by the department of community, trade, and economic development in the state plan for the low-income home energy assistance program.

(2) Subject to the limits set forth in this section, a light and power business or a gas distribution business whose application has been approved by the department under this section may take a credit against tax imposed by this chapter for qualifying grants made by the business. The organization shall apply qualifying grants to the low-income energy related program that best meets a community's needs as determined by the organization.

(3) The department shall approve an application to the extent all qualifying grants in a state fiscal year for the specified service area do not exceed twenty-four percent of the amount of moneys allotted to nonprofit or governmental organizations within the specified service area in federal fiscal year 1995 under the United States department of health and human services low-income home energy assistance program. The department shall keep a running total of all credits approved in each service area for each state fiscal year. The businesses, the organizations, and the department shall work together to develop a method to track the credit within service areas.

(4) Applications for credits under this section shall be made to the department in a form and manner as required by the department. The department shall approve or deny application for credits using the criteria under this section.

(5) Qualifying grants made by a light and power business or a gas distribution business consisting in whole or in part of funds received from voluntary customer contributions are eligible for credit as follows: (a) In an amount equal to one hundred percent of company contributions granted from sources other than voluntary customer contributions; and (b) in an amount equal to ten percent of the voluntary customer contributions granted.

(6) The credit allowed under this section is limited to the amount of tax imposed by this chapter for the calendar year. Approved credit may not be carried over to subsequent calendar years. The credit must be claimed by the due date of the last tax return for the calendar year in which the payment is made. Any unused credit expires. Refunds shall not be given in place of credits.

(7) A person receiving approval must keep records necessary for the department to verify eligibility under this section.

(8) In the case of account closures by recipients of low-income energy assistance, the unused portion of energy assistance from qualifying grants to low-income utility customers shall either: (a) To the extent reasonable and cost-effective, be transferred by the utility or organization to the customer's next utility account; or (b) be returned to the organization's low-income energy assistance programs. Organizations administering qualifying grants shall notify recipients of the requirements of this subsection.

(9) No credit shall be approved for grants made before July 1, 1999.