On page 20, after line 29, insert the following:

"NEW SECTION.  Sec. 304. A new section is added to chapter 84.36 RCW to read as follows:

(1) An eligible landlord taxable under RCW 84.52.065 on an eligible property is allowed a partial credit against those taxes in accordance with this section.

(2)(a) The credit is equal to the amount in excess of seven percent above the difference between the maintenance and operating costs on an eligible property from two tax years prior and the prior tax year.

(b) If the difference is negative, no credit is allowed.

(c) Application is required for the tax credit under this section. The application must be received by the department of revenue by April 15th following the calendar year for which the applicant is claiming the credit. The application must be made to the department in a form and manner prescribed by the department. The department may require any form of sufficient documentation be provided.

(d) A landlord may not receive a tax credit under this section for any dwelling unit for which the landlord claimed an exemption under section 102 of this act during the period upon which the calculation specified in (a) of this subsection is based.

(3) For purposes of this section, the following definitions apply:

(a) "Dwelling unit" has the same meaning as in RCW 59.18.030;

(b) "Eligible landlord" means a landlord, as that term is defined in RCW 59.18.030, renting 20 or fewer dwelling units;

(c) "Eligible property" means a dwelling unit owned by an eligible landlord and subject to the limit on rent increases in section 101 of this act; and

(d) "Maintenance and operating costs" means the sum of mortgage costs, property taxes, property and casualty insurance, utilities, and other costs directly related to keeping the eligible property fit for human habitation pursuant to RCW 59.18.060.

Renumber the remaining section consecutively and correct any internal references accordingly.

On page 21, line 12, after "RCW;" insert "adding a new section to chapter 84.36 RCW;"