H-2222.1

HOUSE BILL 1936

ByRepresentatives Shavers, Ramel, and Timmons

AN ACT Relating to tax incentives for farmers; 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) Beginning January 1, 2025, a credit is allowed against taxes due under this chapter for 25 percent of expenditures made in the previous year by a qualified farmer for the purchase of new equipment, infrastructure, seed, seedlings, spores, animal feed, and amendments.

(2) To qualify for a credit, a farmer must meet at least one of the following criteria:

(a) Is a recipient of grant funds originating directly from the Washington state conservation commission or indirectly receives grant funds through a conservation district or other public entity;

(b) Is a participant in a Washington state conservation commission or conservation district conservation program; or

(c) Is a participant in a United States department of agriculture natural resources conservation service conservation program.

(3) The credit claimed may not exceed the tax that would otherwise be due under this chapter. Any unused credit not used in the current 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; but may not be carried over for any calendar year thereafter. Refunds may not be granted in the place of credits.

(4) An application is not required to claim the credit, but the claimant must keep records necessary for the department to determine eligibility for the credit under this section including documentation of grant funds received and verification of program participation.

(5) The department may adopt rules necessary to implement this section.

(6) For the purposes of this section, "farmer" has the same meaning as in RCW 82.04.213.

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