S-731                 _______________________________________________

                                                   SENATE BILL NO. 3858

                        _______________________________________________

State of Washington                              49th Legislature                              1985 Regular Session

By Senators Vognild, Lee, Newhouse, Metcalf, Zimmerman, Patterson, Bauer and Johnson

Read first time 2/7/85 and referred to Committee on Ways and Means.

AN ACT Relating to the business and occupation tax; and adding a new section to chapter 82.04 RCW.

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:

          In computing tax there may be deducted from the measure of tax by those engaged in high-technology businesses amounts expended in connection with the person's business that represent costs incident to the development of an experimental or pilot model, a plant process, a product, a formula, an invention, or similar property.  For the purposes of this section, "high technology" has the meaning prescribed by RCW 28B.65.020(2).