SB 5029 — Concerning tax deferrals for investment projects in high unemployment counties.

S-0098.1S-0133.5 SUBSTITUTE SENATE BILL 5029 State of Washington 67th Legislature 2021 Regular Session By Senate Business, Financial Services & Trade (originally sponsored by Senators Honeyford and Short)Short READPrefiled FIRST12/22/20. TIME 02/10/21.

Read first time 01/11/21.

Referred to Committee on Business, Financial Services & Trade.

1 SSBSB 5029 participate in the deferral.

2 SSBSB 5029 but only when the computer programming, production of computer software, or other computer-related services are performed by a manufacturer as defined in RCW 82.04.110 and contribute to the production of a new, different, or useful substance or article of tangible personal property for sale;

3 SSBSB 5029 (((11))) (12) "Qualified machinery and equipment" means all new industrial and research fixtures, equipment, and support facilities that are an integral and necessary part of a manufacturing or research and development operation.

4 SSBSB 5029 required by the department.

The amount of state and local sales and use taxes eligible for deferral under this chapter is limited to $400,000 per eligible investment project per person.

(2) In addition to the provisions of ((RCW 82.60.040)) section 4 of this act, the department shall issue a sales and use tax deferral certificate for state and local sales and use taxes due under p.

5 SSBSB 5029 (2) In addition to the provisions of ((RCW 82.60.040)) section 4 of this act, the department shall issue a sales and use tax deferral certificate for state and local sales and use taxes due under chapters 82.08, 82.12, and 82.14 RCW, on each eligible investment project that is located in an eligible area, if the applicant establishes that at the time the project is operationally complete:

(b) The ((department)) joint legislative audit and review committee, as part of its tax preference review process under chapter 43.136 RCW, must use the information reported on the annual tax p.performance report required by this section to study the tax deferral program authorized under this chapter.

6 SSB 5029 performance report required by this section to study the tax deferral program authorized under this chapter.

The reportp. must measure the effect of the program on job creation, the number of jobs created for residents of eligible areas, company growth, and such other factors as the ((department)) committee selects.

6 SB 5029 report must measure the effect of the program on job creation, the number of jobs created for residents of eligible areas, company growth, and such other factors as the ((department)) committee selects.

Year in which % of deferred taxes due use occurs 1 100% 2 87.5% 3 75% 4 62.5% 5 50% 6 37.5% 7 25% 8 12.5% p.(c) If the economic benefits of the deferral are passed to a lessee as provided in RCW 82.60.025, the lessee is responsible for payment to the extent the lessee has received the economic benefit.

7(3) SSBFor 5029purposes (c)of If((this)) thesubsection economic(2) benefits of thethis deferralsection, arethe passedrepayment toschedule a((in lessee as provided in RCW 82.60.025,82.60.060)) the lessee is responsibletolled forduring payment to the extentperiod thep. lessee has received the economic benefit.

(3)7 ForSB purposes5029 of ((this)) subsection (2) of this section, the repayment schedule ((in RCW 82.60.060)) is tolled during the period of time that a taxpayer is receiving relief from repayment of deferred taxes under RCW 82.60.063.

p.NEW SECTION.

8 SSB 5029 NEW SECTION.

and (2)p. RCW 82.60.065 (Tax deferral on construction labor and investment projects—Repayment forgiven) and 1995 1st sp.s.

8 SB 5029 (2) RCW 82.60.065 (Tax deferral on construction labor and investment projects—Repayment forgiven) and 1995 1st sp.s.

9 SSBSB 5029