BILL REQ. #:  H-3851.2 

Read first time 01/12/2006.   Referred to Committee on Technology, Energy & Communications.

     AN ACT Relating to tax relief for the use of technology with reduced environmental impact; amending RCW 82.08.900 and 82.12.900; adding a new section to chapter 82.04 RCW; and providing an effective date.

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:
     (1) In computing the tax imposed under this chapter, a credit is allowed for investment related to pressurized steam pulp washing technology acquired by a paper manufacturer after the effective date of this section to be used in the manufacturing of pulp, paper, newsprint, or paperboard by the paper manufacturer. The credit is equal to: (a) The purchase price or lease price of the pulp washing technology, and charges made for labor and services rendered in respect to installing such technology, if the technology will be located in a rural county; or (b) fifty percent of the purchase price or lease price of the pulp washing technology, and fifty percent of charges made for labor and services rendered in respect to installing such technology, if the technology will not be located in a rural county. The credit under this subsection shall only be taken for the first ten years of any lease of pressurized steam pulp washing technology or the duration of the lease, whichever is shorter in time.
     (2) In computing the tax imposed under this chapter, a credit is allowed for the purchase of anaerobic digestion technology acquired by a person after the effective date of this section. The credit is equal to: (a) The purchase price or lease price of the anaerobic digestion technology, and charges made for labor and services rendered in respect to installing such technology, if the technology will be located in a rural county; or (b) fifty percent of the purchase price or lease price of the anaerobic digestion technology, and fifty percent of charges made for labor and services rendered in respect to installing such technology, if the technology will not be located in a rural county. The credit under this subsection shall only be taken for the first ten years of any lease of anaerobic digestion technology, or the duration of the lease, whichever is shorter in time.
     (3) An application must be made to the department before taking a credit authorized under this section. The application shall be made to the department in a form and manner prescribed by the department. The application shall contain information regarding the uses of the pressurized steam pulp washing technology or anaerobic digestion technology, total cost of acquiring the technology, date of acquisition, and other information required by the department. The department shall rule on the application within sixty days.
     (4) A person taking a credit under this section must keep records necessary for the department to verify eligibility for the credit under this section.
     (5) Credits under this section may be carried over until used. No refunds may be granted for credits under this section.
     (6) For the purposes of this section, the following definitions apply:
     (a) "Anaerobic digestion technology" means: (i) Machinery and equipment that processes manure from livestock into biogas and dried manure using microorganisms in a decomposition process within a closed, oxygen-free container; and (ii) tangible personal property that becomes an ingredient or component of the machinery or equipment.
     (b) "Paper manufacturer" means a person that is primarily engaged in manufacturing pulp, paper, newsprint, and paperboard.
     (c) "Pressurized steam pulp washing technology" means machinery and equipment that uses a pressure vessel that discharges steam to wash unbleached pulp for paper product-making purposes and that is designed to reduce water consumption in pulp washing processes relative to conventional pulp washing processes that use drum washers, rewashers, and deckers.
     (d) "Rural county" has the same meaning as provided in RCW 82.14.370.

Sec. 2   RCW 82.08.900 and 2001 2nd sp.s. c 18 s 4 are each amended to read as follows:
     (1) The tax levied by RCW 82.08.020 does not apply to sales to an eligible person establishing or operating an anaerobic digester or to services rendered in respect to installing, constructing, repairing, cleaning, altering, or improving an anaerobic digester, or to sales of tangible personal property that becomes an ingredient or component of the anaerobic digester. The anaerobic digester must be used primarily to treat ((dairy)) livestock manure.
     (2)(a) The department of revenue must provide an exemption certificate to an eligible person upon application by that person. The application must be in a form and manner prescribed by the department and must contain information regarding the location of the facility and other information as the department may require.
     (b) The exemption is available only when the buyer provides the seller with an exemption certificate in a form and manner prescribed by the department. The seller must retain a copy of the certificate for the seller's files.
     (3) The definitions in this subsection apply to this section and RCW 82.12.900 unless the context clearly requires otherwise:
     (a) "Anaerobic digester" means a facility that processes manure from ((cattle)) livestock into biogas and dried manure using microorganisms in a decomposition process within a closed, oxygen-free container.
     (b) "Eligible person" means any person establishing or operating an anaerobic digester to treat primarily ((dairy)) livestock manure.
     (c) "Primarily" means more than fifty percent measured by volume or weight.

Sec. 3   RCW 82.12.900 and 2003 c 5 s 16 are each amended to read as follows:
     The provisions of this chapter do not apply with respect to the use of anaerobic digesters, tangible personal property that becomes an ingredient or component of anaerobic digesters, or the use of services rendered in respect to installing, repairing, cleaning, altering, or improving eligible tangible personal property by an eligible person establishing or operating an anaerobic digester, as defined in RCW 82.08.900. The anaerobic digester must be used primarily to treat ((dairy)) livestock manure.

NEW SECTION.  Sec. 4   This act takes effect July 1, 2006.