§ 82.04.4492. Credit -- Polysilicon manufacturers
(1)(a) In computing the tax imposed under this chapter, a manufacturer of polysilicon may claim a credit for its qualified preproduction development expenditures occurring after January 1, 2008.
(b) Any credits earned under this section must be accrued and carried forward and may not be used until July 1, 2009, and until a polysilicon manufacturer expends five hundred million dollars on a polysilicon manufacturing plant located in a county along the boundary line between Washington and Oregon with a population greater than fifty thousand but less than one hundred thousand. A polysilicon manufacturer may not claim a credit under this section in excess of one million dollars in any calendar year. Carryover credits may be used at any time after June 30, 2009, and may be carried over until used. Refunds may not be granted in the place of a credit.
(2) The credit is equal to the amount of qualified preproduction development expenditures, multiplied by the rate of seven and one-half percent.
(3) Credit earned on or after July 1, 2009, may be carried over until used. The credit claimed against taxes due for each calendar year must not exceed the amount of tax otherwise due under this chapter for the calendar year. Refunds may not be granted in the place of a credit.
(4) The definitions in this subsection apply throughout this section unless the context clearly requires otherwise.
(a)(i) "Preproduction development" means: (A) Research, design, and engineering activities performed in relation to the development of a product or product line; (B) the design and engineering of the facility in which the product or product line will be manufactured; and (C) training of production employees where the training is directly related to the manufacturing of the product or product line.
(ii) The term "preproduction development" includes the discovery of technological information, the translating of technological information into new or improved products, processes, techniques, formulas, or inventions, and the adaptation of existing products into new products or derivatives of products or models. The term does not include manufacturing activities or other production-oriented activities other than tool design and engineering design for the manufacturing process and the training identified in (a)(i)(C) of this subsection (4). The term also does not include surveys and studies, social science and humanities research, market research or testing, quality control, sale promotion and service, computer software developed for internal use, and research in areas such as improved style, taste, and seasonal design.
(b)(i) Except as provided in (ii) of this subsection (4)(b), "qualified preproduction development" means preproduction development performed in the field of polysilicon manufacturing in a county along the boundary line between Washington and Oregon with a population greater than fifty thousand but less than one hundred thousand.
(ii) "Qualified preproduction development" also includes preproduction development as defined in (a)(i)(B) of this subsection (4) occurring outside of this state in relation to a polysilicon manufacturing facility located, or to be located, in a county along the boundary line between Washington and Oregon with a population greater than fifty thousand but less than one hundred thousand.
(c) "Qualified preproduction development expenditures" means operating expenses including wages, benefits, supplies, and computer expenses directly incurred in qualified preproduction development by a person claiming the credit provided in this section. The term does not include amounts paid to a person or to the state or any of its departments or institutions, other than a public educational or research institution, to conduct preproduction development in the field of polysilicon manufacturing. The term also does not include capital costs and overhead, such as expenses for land, structures, or depreciable property. For purposes of this subsection (4)(c), capital costs do not include costs incurred for the design and engineering of a manufacturing facility as provided in (a)(i)(B) of this subsection (4).
(5) In addition to all other requirements under this title, a person claiming the credit under this section must report as required under RCW 82.32.545 and provide such additional information as the department may prescribe.
(6) Credit may not be claimed for expenditures for which a credit is claimed under RCW 82.04.4452.
(7) This section expires July 1, 2024.
[2008 c 283 § 1.]
Notes:
Contingency -- 2008 c 283: "If a port in a county along the boundary line between Washington and Oregon with a population greater than fifty thousand but less than one hundred thousand and a polysilicon manufacturer do not sign a memorandum of understanding to site a polysilicon manufacturing plant that is expected to cost at least five hundred million dollars by October 1, 2008, this act is null and void." [2008 c 283 § 3.]
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Last modified: April 7, 2009