BILL REQ. #:  S-0907.3 

Read first time 01/28/11.   Referred to Committee on Ways & Means.

     AN ACT Relating to providing tax incentives for donations of modern laboratory equipment to higher education institutions and vocational skills centers; 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 shortage of high-quality laboratory equipment in the community and technical colleges of this state, including the Northwest Indian college and vocational skills centers, is a limiting factor on the modern instruction needed in technology-related fields to maintain industrial competitiveness and spur economic development in the state. This problem can be at least partially addressed by encouraging donations of modern laboratory equipment.

NEW SECTION.  Sec. 2   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 in an amount equal to the fair market value of donations made under subsection (2) of this section.
     (2) After issuing a need statement and accepting a donation of modern laboratory equipment useful in one or more technology-related fields, the recipient institution must promptly have the fair market value of such equipment assessed by a qualified, independent expert; however, when the price of the donated equipment is listed in current catalogs or price lists, an independent expert need not be used. The assessed fair market value of such equipment or the listed value must then be reported by the recipient community or technical college to the donor and the department, along with such other information as the department deems necessary. The credit under this section must be earned, and claimed against taxes due under this chapter, for the tax reporting period in which the contribution was made by the person claiming credit under this section. The credit may not exceed the tax otherwise due under this chapter for the tax reporting period. Unused credit may be carried over and used in subsequent tax reporting periods. No refunds may be granted for credits under this section.
     (3) For the purposes of this section, the following definitions apply unless the context clearly requires otherwise:
     (a) "Donation" means an unencumbered transfer.
     (b) "Institution" means a community or technical college as defined in RCW 28B.50.030, a vocational skills center, or the Northwest Indian college.
     (c) "Modern laboratory equipment" means laboratory equipment that is useful in the course of institution instruction, training or research, and is comparable to laboratory equipment currently used in private industry, not-for-profit organizations, or government laboratories. Such laboratory equipment must retain at least one-half of its useful life at the time of donation.
     (d) "Technology-related fields" means the fields of engineering, physical sciences, biological sciences, computer sciences, agriculture and food processing, or other fields established by rule by the higher education coordinating board.