BILL REQ. #:  H-4038.1 

Read first time 01/13/2006.   Referred to Committee on Finance.

     AN ACT Relating to a business and occupation credit for employers who rehire returning active duty national guard members; adding a new section to chapter 82.04 RCW; creating a new section; 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 section, an eligible person is allowed a credit against the tax due. The credit is equal to one thousand dollars per year for each qualified person rehired after the effective date of this act and reemployed for three hundred sixty-five consecutive days.
     (2) Credits may not be claimed for any rehiring prior to the effective date of this act. The credit is authorized for the rehiring of a qualified person on or after the effective date of this act.
     (3) A credit is earned for the calendar year following the rehire of a qualified person. The credit may be accrued and carried over until it is used. No refunds may be granted for credits under this section.
     (4) If at any time the department finds that a qualified person is not reemployed for at least three hundred sixty-five consecutive days or is not in an employment position equal or better to his or her prior employment position, the amount of taxes for which a credit has been claimed is immediately due and payable. The department shall assess interest, but not penalties, on the credited taxes for which the person is not eligible. The interest shall be assessed at the rate provided for the delinquent excise taxes under chapter 82.32 RCW and shall accrue until the taxes against which the credit has been claimed are repaid.
     (5) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
     (a) "Active duty" means full-time duty in the national guard and deployment internationally or domestically for at least one year.
     (b) "Eligible person" means a person as defined in RCW 82.04.030:
     (i) Who has fifty or less employees;
     (ii) Who files electronically with the department; and
     (iii)(A) Who rehires a returning active duty national guard member to an employment position equal to or better than the employment position that the returning active duty national guard member held prior to his or her active duty employment; and (B) who continues to employ the returning active duty national guard member for three hundred sixty-five consecutive days.
     (c) "Qualified person" means a person who was employed by an eligible person prior to being on active duty and is rehired into an equal or better employment position by the eligible person immediately after his or her active duty ends.

NEW SECTION.  Sec. 2   This act takes effect July 1, 2006.

NEW SECTION.  Sec. 3   This act shall be known as the "patriotic employer act."