SB 5260 — Concerning the continuation of tax preferences supporting the solar silicon manufacturing industry.

S-2426.1SUBSTITUTES-0617.1SENATE SENATE BILL 5260State of Washington65th Legislature2017 Regular SessionBy Senate Ways & Means (originally sponsored by Senator Warnick)READWarnickRead FIRSTfirst TIMEtime 04/04/17.AN01/18/17. ACT Relating to the continuation of tax preferences supporting the solar silicon manufacturing industry;

amendingReferred RCWto 82.04.294,Committee 82.08.9651,on andWays 82.12.9651;& Means.AN ACT Relating to the continuation of tax preferences supporting the solar silicon manufacturing industry;

amending RCW 82.04.294 and 82.08.9651;

"Solar grade silicon" does not include silicon used in semiconductors.(h) "Stirling converter" means a device that produces electricity by converting heat from a solar source utilizing a stirling engine.(i) "Thin film solar devices" means a nonparticipating substrate on which various semiconducting materials are deposited to produce a photovoltaic cell that is used to generate electricity.(5) A person reporting under the tax rate provided in this section must file a complete annual survey with the department under RCW 82.32.585.(6) This section expires June 30, ((2017)) 2027.NEW SECTION.  Sec. 3.  (1) This section is the tax preference performance statement for the tax preferencespreference contained in sectionssection 4 and 5 of this act.

This performance statement is only intended to be used for subsequent evaluation of the tax preferences.preference.

It is not intended to create a private right of action by any party or be used to determine eligibility for preferential tax treatment.(2) The legislature categorizes thesethis tax preferencespreference as onesone intended to induce certain designated behavior by taxpayers, improve industry competitiveness, and create or retain jobs, as indicated in RCW 82.32.808(2) (a) through (c).(3) It is the legislature's specific public policy objective to encourage significant construction projects;

It is the legislature's intent to extend by ten years the preferential tax ratesrate for sales and uses of gases and chemicals used in the production of semiconductor materials, in order to encourage the growth and retention of the semiconductor business in Washington, thereby strengthening Washington's competitiveness with other states for manufacturing investment.(4) If a review finds that the number of construction projects in the industry has increased, and that number of people employed by the solar silicon industry in Washington is the same or more than in 2015, and that at least sixty percent of employees earn sixty thousand dollars a year, then the legislature intends to extend the expiration date of the tax preferences.(5)preference.(5) In order to obtain the data necessary to perform the review in subsection (4) of this section, the joint legislative audit and review committee may refer to the department of revenue's annual survey data.Sec. 4.  RCW 82.08.9651 and 2014 c 97 s 405 are each amended to read as follows:(1) The tax levied by RCW 82.08.020 does not apply to sales of gases and chemicals used by a manufacturer or processor for hire in the production of semiconductor materials.

The person is subject to all of the requirements of chapter 82.32 RCW.(4) This section expires ((December 1, 2018)) July 1, 2027.Sec. 5.  RCW2027.NEW 82.12.9651SECTION.  Sec. 5.  Sections 1 and 20142 cof 97this sact 406 are eachnecessary amendedfor tothe readimmediate aspreservation follows:(1) The provisions of thisthe chapterpublic dopeace, nothealth, applyor withsafety, respector tosupport of the usestate ofgovernment gases and chemicalsits usedexisting bypublic ainstitutions, manufacturerand ortake processoreffect forJune hire30, in2017.--- theEND production--- of semiconductor materials.

This exemption is limited to gases and chemicals used in the production process to grow the product, deposit or grow permanent or sacrificial layers on the product, to etch or remove material from the product, to anneal the product, to immerse the product, to clean the product, and other such uses whereby the gases and chemicals come into direct contact with the product during the production process, or uses of gases and chemicals to clean the chambers and other like equipment in which such processing takes place.

For purposes of this section, "semiconductor materials" has the meaning provided in RCW 82.04.2404 and 82.04.294(3).(2)(a) Except as provided under (b) of this subsection (2), a person claiming the exemption under this section must file a complete annual survey with the department under RCW 82.32.585.(b) A person claiming the exemption under this section and who is required to file a complete annual report with the department under RCW 82.32.534 as a result of claiming the tax preference provided by RCW 82.04.2404 is not also required to file a complete annual survey under RCW 82.32.585.(3) No application is necessary for the tax exemption.

The person is subject to all of the requirements of chapter 82.32 RCW.(4) This section expires ((December 1, 2018)) July 1, 2027.NEW SECTION.  Sec. 6.  Sections 1 and 2 of this act are necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and take effect June 30, 2017.--- END ---