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• Introduced by Sen. Dale Brandland, (R-Bellingham) (R) on January 16, 2004, to create tax incentives for manufacturing aluminum. The bill provides tax relief for people manufacturing aluminum (smelters), having them pay taxes equal to their sales of aluminum multiplied by .2904 percent. See also Companion HB 2339.
  • Referred to the Senate Economic Development Committee on January 16, 2004.
    • Testimony in support offered to the Senate Economic Development Committee on January 30, 2004, by Sen. Brandland, Sen. Spanel, sponsors; Rep. Morris; Rep. Linville; Rep. Erickson; Sandi Swarthout, Mike Tanchuk, Bob Wilt, Vicki Henley, Tim Deshazo,Alcoa; and others. They testified that aluminum smelter jobs have a large economic multiplier effect. BPA's rates have doubled since 1998. With this bill, aluminum productivity and employment will increase. The bill has sunset and accountability provisions. The impact in the budget will be less than the catastrophic impacts if the bill does not pass. The aluminum industries' electrical use allows flexibility in management of the electric grid.
    • Testimony with concerns offered to the Senate Economic Development Committee on January 30, 2004, by Collins Sprague, Avista Corp., who testified that sellers of energy taking a credit would have to report on wages, etc., at the aluminum plant. It should only be smelters reporting about their plants.
  • Substitute offered to the Senate Economic Development Committee on January 30, 2004, to give aluminum smelters a credit against B&O tax liability for property taxes paid through 2006. The bill provides a credit against tax liability to businesses that sell electricity or natural or manufactured gas to aluminum smelters. Aluminum smelters may also take a credit against retail sales and use tax liability. The substitute is passed in committee on January 30, 2004.
  • Referred to the Senate Ways & Means Committee on January 30, 2004.
  • Substitute offered to the Senate Ways & Means Committee on February 24, 2004, to remove the requirement that detailed employment information and information on the amount of aluminum smelted be reported. The substitute also makes reported information confidential. The substitute passed in committee on February 24, 2004.
  • Referred to the Senate Rules Committee on February 25, 2004.
• Passed in the Senate (46 to 1) on March 2, 2004, creating tax incentives for manufacturing aluminum. [Vote Details and Comments]
• Received in the House on March 3, 2004.
  • Referred to the House Finance Committee on March 3, 2004.
  • Amendment offered to the House Finance Committee on March 4, 2004, to terminates the ability to earn B&O tax or PUT credit on sales of electricity to a smelter on July 1, 2011. Provides that the credits do not apply on to income received from resale of electricity that was originally sold under contract for the purposes of smelting. Requires an evaluation of the B&O tax and PUT credits by December 2010. The amendment requires smelters to make an annual report if receiving any incentive in the bill except the B&O tax or PUT credit for sales of electricity made to a smelter. Requires the report to contain detailed employment information by the total number of full-time, part-time, and temporary positions. Requires that the report information, and the amount of taxes that are due if a report is not filed, be disclosed to the public upon request. Requires an additional evaluation of smelter incentives in 2005 and that the evaluation be conducted by the Legislative fiscal committees. The amendment passed in the House by voice vote on March 4, 2004.
• Passed in the House (91 to 4) on March 5, 2004, creating tax incentives for manufacturing aluminum. [Vote Details and Comments]
• Received in the Senate on March 8, 2004, the Sente concurred with the House amendments.
• Passed in the Senate (47 to 0) on March 8, 2004. [Vote Details and Comments]
• Signed by Gov. Gary Locke on March 19, 2004, creating tax incentives for manufacturing aluminum.