1569-S2 AMH ERIC KNUT 055

2SHB 1569 - H AMD 79

By Representative Ericksen

FAILED 3/10/2007

   On page 29, after line 23, insert the following:

   "NEW SECTION. Sec. 404. A new section is added to chapter 82.04 RCW to read as follows:

   (1) In computing tax there may be deducted from the measure of tax the amount paid by small employers to provide health care services for its employees. Payments made by employees are not eligible for deduction under this subsection.

   (2) For the purposes of this section, the following definitions apply:

   (a) "Small employer" has the meaning provided in RCW 48.43.005.

   (b) "Health care services" means a health benefit plan as defined in RCW 48.43.005, contributions to health savings accounts as defined by the United States internal revenue service, or other health care services purchased by the small employer for its employees.

   NEW SECTION. Sec. 405. Section 404 of this act takes effect August 1, 2007."

   Correct internal references accordingly.

   Correct the title.

   EFFECT: Provides a B&O tax exemption for small businesses that    offer health coverage for their employees.