BILL REQ. #:  S-3993.1 

Read first time 01/14/08.   Referred to Committee on Economic Development, Trade & Management.

     AN ACT Relating to increasing job creation and encouraging self-employment in the state; amending RCW 28B.30.530; adding a new section to chapter 82.04 RCW; and creating a new section.

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

NEW SECTION.  Sec. 1   It is the intent of the legislature to increase job creation and encourage self-employment in the state by providing comprehensive assistance, training, and support services to entrepreneurs and start-up businesses. It is the purpose of this act to increase the assistance available to small businesses in the state and provide a coordinated, efficient, responsive, and accountable system to support small businesses, microenterprises, and entrepreneurial development.

NEW SECTION.  Sec. 2   A new section is added to chapter 82.04 RCW to read as follows:
     (1) Subject to the limitations in this section, a credit is allowed against the tax imposed under this chapter for contributions made by a person to the Washington small business development center created in RCW 28B.30.530.
     (2) The person must make the contribution before claiming a credit authorized under this section. Credits earned under this section may be claimed against taxes due for the calendar year in which the contribution is made. The amount of credit claimed for a reporting period may not exceed the tax otherwise due under this chapter for that reporting period. No person may claim more than one hundred thousand dollars of credit in any calendar year, including credit carried over from a previous calendar year. No refunds may be granted for any unused credits.
     (3) The maximum credit that may be earned for each calendar year under this section for a person is limited to the lesser of:
     (a) One hundred thousand dollars; or
     (b)(i) Through calendar year 2010, an amount equal to one hundred percent of the contributions made by the person to a program during the calendar year;
     (ii) For calendar years 2011 and 2012, an amount equal to ninety percent of the contributions made by the person to a program during the calendar year; and
     (iii) For calendar years after 2012, an amount equal to eighty percent of the contributions made by the person to a program during the calendar year.
     (4) Except as provided under subsection (5) of this section, a tax credit claimed under this section may not be carried over to another year.
     (5) Any amount of tax credit otherwise allowable under this section not claimed by the person in any calendar year may be carried over and claimed against the person's tax liability for the next succeeding calendar year. Any credit remaining unused in the next succeeding calendar year may be carried forward and claimed against the person's tax liability for the second succeeding calendar year; and any credit not used in that second succeeding calendar year may be carried over and claimed against the person's tax liability for the third succeeding calendar year, but may not be carried over for any calendar year thereafter.
     (6) Credits are available on a first in-time basis. The department shall disallow any credits, or portion thereof, that would cause the total amount of credits claimed under this section during any calendar year to exceed nine hundred thousand dollars. If this limitation is reached, the department shall notify the small business development center that the annual statewide limit has been met. In addition, the department shall provide written notice to any person who has claimed tax credits in excess of the nine hundred thousand dollar limitation in this subsection. The notice shall indicate the amount of tax due and shall provide that the tax be paid within thirty days from the date of such notice. The department shall not assess penalties and interest as provided in chapter 82.32 RCW on the amount due in the initial notice if the amount due is paid by the due date specified in the notice, or any extension thereof.
     (7) To claim a credit under this section, a person must electronically file with the department all returns, forms, and any other information required by the department, in an electronic format as provided or approved by the department. Any return, form, or information required to be filed in an electronic format under this section is not filed until received by the department in an electronic format. As used in this subsection, "returns" has the same meaning as "return" in RCW 82.32.050.
     (8) No application is necessary for the tax credit. The person must keep records necessary for the department to verify eligibility under this section.
     (9) The small business development center shall provide to the department, upon request, such information needed to verify eligibility for credit under this section, including information regarding contributions received by the program.
     (10) The department shall not allow any credit under this section before July 1, 2008.

Sec. 3   RCW 28B.30.530 and 1984 c 77 s 1 are each amended to read as follows:
     (1) The board of regents of Washington State University shall establish the Washington State University small business development center and such satellite offices as the center deems appropriate.
     (2) The center shall provide management and technical assistance including but not limited to training, counseling, and research services to small businesses throughout the state. The center shall work with ((public and private community development and economic assistance agencies and shall work towards the goal of coordinating activities with such agencies)) the Washington state economic development commission, the department of community, trade, and economic development, the workforce training and education coordinating board, the employment security department, the higher education coordinating board, and the state board for community and technical colleges to:
     (a) Integrate small business development centers with other state economic development and workforce development programs;
     (b) Facilitate the development of interinstitutional entrepreneurial education, training, and assistance programs; and
     (c) Coordinate services to avoid duplication of services.
     (3) The administrator of the center may contract with other public or private entities for the provision of specialized services.
     (4) The small business ((and)) development center may accept and disburse federal grants or federal matching funds or other funds or donations from any source when made, granted, or donated to carry out the center's purposes. Contributions made to the center under section 2 of this act may be used to support satellite offices, increase assistance available to small and start-up businesses, develop new assistance programs, and otherwise carry out the requirements and the purpose of this act.