BILL REQ. #:  S-5440.1 

     AN ACT Relating to significant investments in semiconductor materials fabrication facilities; and amending 2007 c 54 s 29 (uncodified).

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1   2007 c 54 s 29 (uncodified) is amended to read as follows:
     (1)(a) Sections 2 through 8, chapter 84, Laws of 2006 and section 22, chapter 54, Laws of 2007 are contingent upon the siting, expansion, or renovation, and commercial operation of a significant semiconductor materials fabrication facility or facilities in the state of Washington.
     (b) For the purposes of this section:
     (i) "Commercial operation" means the equipment and process qualifications in the new, expanded, or renovated building are completed and production for sale has begun.
     (ii) "Semiconductor materials fabrication" means the manufacturing of silicon crystals, silicon ingots that are at least three hundred millimeters in diameter, raw polished semiconductor wafers that are at least three hundred millimeters in diameter, and compound semiconductor wafers that are at least three hundred millimeters in diameter.
     (iii) "Significant" means that the combined investment or investments by a single person, occurring at any time before December 1, 2006, of new buildings, expansion or renovation of existing buildings, tenant improvements to buildings, and machinery and equipment in the buildings, at the commencement of commercial production, is at least three hundred fifty million dollars based on actual expenditures by the person.
     (iv) "Additional significant investment" means the combined investment or investments by a single person, occurring at any time before December 1, 2006, of new buildings, expansion, and machinery and equipment in the building, at the commencement of commercial production of at least seven hundred million dollars based on actual expenditures by the person. This additional investment qualifies the person making such an investment for a credit against the taxes due under chapter 82.04 RCW equal to 0.068%.
     (v) An additional significant investment in excess of one billion dollars is eligible for a business and occupation tax rate under chapter 82.04 RCW of 0.138%.
     (2) Except for section 1 of this act and this section, this act takes effect the first day of the month immediately following the department's determination that the contingency in subsection (1) of this section has occurred. The department shall make its determination regarding the contingency in subsection (1) of this section based on information provided to the department by affected taxpayers or representatives of affected taxpayers.
     (3) The department of revenue shall provide notice of the effective date of sections 2 through 8, chapter 84, Laws of 2006 [December 1, 2006] to affected taxpayers, the legislature, the office of the code reviser, and others as deemed appropriate by the department.