BILL REQ. #: S-1077.1

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SUBSTITUTE SENATE BILL 5363
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State of Washington

62nd Legislature

2011 Regular Session

By Senate Financial Institutions, Housing & Insurance (originally sponsored by Senators Hobbs, Zarelli, Kline, and Shin)

READ FIRST TIME 02/08/11.

AN ACT Relating to a business and occupation tax deduction for certified community development financial institutions; 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   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 by an eligible entity, interest received on loans issued by the eligible entity as part of a first-time home buyer program.
     (2) The definitions in this subsection apply to this section.
     (a) "Eligible entity" means a nonprofit organization certified as a community development financial institution by the federal community development financial institutions fund.
     (b) "Nonprofit organization" means an organization exempt from federal income tax under 26 U.S.C. Sec. 501(c)(3) of the federal internal revenue code of 1986.

NEW SECTION. Sec. 2 This act applies to interest received on or after August 1, 2011.

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