BILL REQ. #:  Z-0390.3 

Read first time 02/18/13.   Referred to Committee on Ways & Means.

     AN ACT Relating to providing a business and occupation tax credit for businesses that hire veterans; adding a new section to chapter 82.04 RCW; creating new sections; 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) A person is allowed a credit against the tax due under this chapter as provided in this section. The credit equals:
     (a) Twenty percent of wages and benefits paid up to a maximum of three thousand dollars for each qualified employment position filled by an unemployed veteran of Operation Enduring Freedom or Operation Iraqi Freedom.
     (b) Ten percent of wages and benefits paid up to a maximum of one thousand five hundred dollars for each qualified employment position filled by an unemployed veteran of an armed conflict prior to Operation Enduring Freedom.
     (2) The department must keep a running total of all credits allowed under this chapter during each fiscal year. The department may not allow any credits that would cause the total to exceed ten million dollars in any fiscal year. If all or part of a claim for credit is disallowed under this subsection, the disallowed portion is carried over to the next fiscal year. However, the carryover into the next fiscal year is only permitted to the extent that the cap for the next fiscal year is not exceeded. Priority must be given to credits carried over from a previous fiscal year.
     (3) The credit may be used against any tax due under this chapter, and may be carried over until used. No refunds may be granted for credits under this section.
     (4) The taxpayer must keep records necessary for the department to determine eligibility under this section. The department may prescribe rules and procedures regarding the administration of this section.
     (5) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
     (a)(i) "Qualified employment position" means a permanent full-time employee employed during two consecutive full calendar quarters. For seasonal employers, "qualified employment position" also includes the equivalent of a full-time employee in work hours for two consecutive full calendar quarters.
     (ii) For purposes of this subsection (5)(a), "full-time" means a normal work week of at least thirty-five hours.
     (iii) If an employee is either voluntarily or involuntarily separated from employment, the position does not cease to be a qualified employment position if the employer is training or actively recruiting a replacement who is an unemployed veteran.
     (b) "Unemployed" has the same meaning as in RCW 50.04.310.
     (c) "Veteran" means every person who has received an honorable discharge or received a discharge for medical reasons with an honorable record, where applicable, and who has served as a member in any branch of the armed forces of the United States, including the national guard and armed forces reserves, and has fulfilled his or her initial military service obligation, and has served in operation enduring freedom, operation Iraqi freedom, or any armed conflict prior to operation enduring freedom.

NEW SECTION.  Sec. 2   Pursuant to chapter 43.136 RCW, the joint legislative audit and review committee must review the business and occupation tax credit established under section 1 of this act by July 1, 2018.

NEW SECTION.  Sec. 3   This act takes effect August 1, 2013.

NEW SECTION.  Sec. 4   This act may be known and cited as the hire our heroes tax credit program.