H‑0340.1   _____________________________________________

HOUSE BILL 2112

           _____________________________________________

State of Washington      57th Legislature     2001 Regular Session

By Representatives Marine, Edmonds, Conway, Bush and Santos

Read first time 02/14/2001.  Referred to Committee on Finance.

_1      AN ACT Relating to excise tax credits for employer-provided

_2  child care benefits; adding a new section to chapter 82.04 RCW;

_3  and providing an effective date.

_4  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

_5      NEW SECTION. Sec. 1.  A new section is added to chapter 82.04

_6  RCW to read as follows:

_7      (1) A taxpayer may claim a credit against the tax imposed by

_8  this chapter, equal to fifty percent of the amount of state-

_9  approved child care benefits provided to employees of the

10  taxpayer.

11      (2) Before claiming a credit under this section, a taxpayer

12  must obtain approval of the proposed child care benefit from the

13  department of social and health services.  A request for approval

14  must include a description of the child care benefit provided to

15  the employee and the costs of the proposed child care benefit to

16  the taxpayer and employee.  The department of social and health

17  services must approve a request if the department finds that the

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_1  proposed child care benefit is consistent with the purposes and

_2  requirements of chapter 74.15 RCW.

_3      (3) Application for credits under this section must be made to

_4  the department of revenue in a form and manner as required by the

_5  department.  A credit must be claimed in the year in which the

_6  expenditure is made.  Credits may not exceed the amount of tax that

_7  would otherwise be due under this chapter for a reporting

_8  period.  Unused credits may be carried forward and used in future

_9  reporting periods.

10      (4) As used in this section, "child care benefit" means one or

11  more of the following:  (a) The value of an employer-provided

12  voucher that can be used to pay part or all of the cost of child

13  care in a state licensed facility; (b) the cost of construction of

14  an employer-provided child care facility; or (c) the cost of

15  operation and maintenance of an employer-provided child care

16  facility.

17      NEW SECTION. Sec. 2.  This act takes effect October 1, 2001.

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