HOUSE BILL NO. 651

View Bill Status
View Bill Text
View Amendment
View Engrossed Bill (Original Bill with Amendment(s) Incorporated)
View Statement of Purpose / Fiscal Impact

Text to be added within a bill has been marked with Bold and Underline. Text to be removed has been marked with Strikethrough and Italic. How these codes are actually displayed will vary based on the browser software you are using.
This sentence is marked with bold and underline to show added text.
This sentence is marked with strikethrough and italic, indicating text to be removed.

Bill Status



H0651aa,aaS.........................................by REVENUE AND TAXATION
INCOME TAX CREDIT - Amends existing law to provide that for the income tax
credit for new employees who are earning an average of fifteen dollars and
fifty cents per hour and are eligible for employer provided health and
accident coverage, the credit shall be one thousand dollars per employee.
                                                                        
02/11    House intro - 1st rdg - to printing
02/12    Rpt prt - to Rev/Tax
02/18    Rpt out - rec d/p - to 2nd rdg
02/19    2nd rdg - to 3rd rdg
02/23    To Gen Ord
02/26    Rpt out amen - to engros
02/27    Rpt engros - 1st rdg - to 2nd rdg as amen
03/01    2nd rdg - to 3rd rdg as amen
03/04    3rd rdg as amen - PASSED - 55-14-1
      AYES -- Andersen, Barraclough, Barrett, Bauer, Bedke, Bell, Black,
      Block, Bolz, Bradford, Campbell, Cannon, Clark, Collins, Crow, Cuddy,
      Deal, Denney, Eberle, Edmunson, Ellsworth, Eskridge, Field(18),
      Field(23), Gagner, Garrett, Jones, Kellogg, Kulczyk, Lake, Langford,
      McGeachin, McKague, Meyer, Miller, Moyle, Nielsen, Raybould,
      Ridinger, Ring, Roberts, Robison, Rydalch, Sali, Schaefer, Shepherd,
      Shirley, Skippen, Smith(30), Smylie, Snodgrass, Stevenson,
      Trail(Bennett), Wood, Mr. Speaker
      NAYS -- Bayer, Boe, Douglas, Harwood, Henbest, Jaquet, Langhorst,
      Martinez, Mitchell, Naccarato, Pasley-Stuart, Ringo, Sayler,
      Smith(24)
      Absent and excused -- Wills
    Floor Sponsor - Cuddy
    Title apvd - to Senate
03/05    Senate intro - 1st rdg - to Loc Gov
03/11    Rpt out - to 14th Ord
    Rpt out amen - to 1st rdg as amen
03/12    1st rdg - to 2nd rdg as amen
03/15    2nd rdg - to 3rd rdg as amen
03/16    3rd rdg as amen - PASSED - 31-0-4
      AYES -- Andreason, Bailey, Brandt, Bunderson, Burkett, Calabretta,
      Cameron, Compton, Darrington, Davis, Gannon, Geddes, Goedde, Hill,
      Kennedy, Keough, Little, Lodge, Malepeai, Marley, McKenzie,
      McWilliams, Noble, Pearce, Richardson, Schroeder, Sorensen, Stegner,
      Stennett, Sweet, Werk
      NAYS -- None
      Absent and excused -- Burtenshaw, Ingram, Noh, Williams
    Floor Sponsor - McKenzie
    Title apvd - to House
03/17    House concurred in Senate amens - to engros
03/18    Rpt engros - 1st rdg - to 2nd rdg as amen
03/19    2nd rdg - to 3rd rdg as amen
03/20    3rd rdg as amen - PASSED - 61-3-6
      AYES -- Andersen, Barraclough, Bayer, Bedke, Bell, Black, Block, Boe,
      Bolz, Bradford, Campbell, Cannon, Collins, Crow, Cuddy, Deal, Denney,
      Douglas, Eberle, Edmunson, Ellsworth, Eskridge, Field(18), Field(23),
      Gagner, Garrett, Henbest, Jaquet, Jones, Kellogg, Lake, Langford,
      Langhorst, Martinez, McGeachin, McKague, Meyer, Miller, Mitchell,
      Moyle, Naccarato, Nielsen, Pasley-Stuart, Raybould, Ridinger, Ring,
      Ringo, Roberts, Robison, Rydalch, Sali, Sayler, Schaefer, Shepherd,
      Shirley, Skippen, Smith(30), Smylie, Snodgrass, Stevenson, Wills
      NAYS -- Barrett, Kulczyk, Wood
      Absent and excused -- Bauer, Clark, Harwood, Smith(24), Trail, Mr.
      Speaker
    Floor Sponsor - Cuddy
    Title apvd - To enrol - Rpt enrol - Sp signed
03/20    Pres signed
03/22    To Governor
03/26    Governor signed
         Session Law Chapter 347
         Effective: 01/01/04

Bill Text


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-seventh Legislature                 Second Regular Session - 2004
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 651
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO INCOME TAX CREDITS FOR NEW EMPLOYEES; AMENDING  SECTION  63-3029F,
  3        IDAHO  CODE,  TO PROVIDE THAT IN THE CASE OF CERTAIN NEW EMPLOYEES EARNING
  4        AN AVERAGE OF FIFTEEN DOLLARS AND FIFTY CENTS PER HOUR  AND  ELIGIBLE  FOR
  5        EMPLOYER PROVIDED HEALTH AND ACCIDENT COVERAGE THE STATE INCOME TAX CREDIT
  6        SHALL  BE  ONE  THOUSAND  DOLLARS PER EMPLOYEE; DECLARING AN EMERGENCY AND
  7        PROVIDING RETROACTIVE APPLICATION.
                                                                        
  8    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  9        SECTION 1.  That Section 63-3029F, Idaho Code, be, and the same is  hereby
 10    amended to read as follows:
                                                                        
 11        63-3029F.  SPECIAL  CREDIT  AVAILABLE  --  NEW EMPLOYEES. (1) Any taxpayer
 12    shall be allowed a credit, in an amount determined  under  subsection  (2)  of
 13    this  section,  against  the  tax  imposed by this chapter, other than the tax
 14    imposed by section 63-3082, Idaho Code, for any taxable year during which  the
 15    taxpayer's  employment of new employees, as defined under section 63-3029E(1),
 16    Idaho Code, increases above the taxpayer's average employment for either:  (a)
 17    the  prior  taxable year, or (b) the average of three (3) prior taxable years,
 18    whichever is higher. No credit shall be allowed under this section unless  the
 19    number of new employees equals or exceeds one (1) person.
 20        (2)  (a) The credit authorized in subsection (1) of this section shall be:
 21             (i)   Ffive hundred dollars ($500) per new employee described in sub-
 22             section (2)(d) of this section; and
 23             (ii)  One  thousand  dollars  ($1,000)  per new employee described in
 24             subsection (2)(c) of this section.
 25        (b) but tThe total credit allowed by this section shall not  exceed  three
 26        and  one-quarter  percent (3.25%) of net income from the taxpayer's corpo-
 27        rate, proprietorship, partnership, small business corporation  or  limited
 28        liability  company  revenue-producing  enterprise  in which the employment
 29        occurred. Additionally, the total amount of this  and  all  other  credits
 30        allowed  under  this  chapter except for the credits allowed under section
 31        63-3029, Idaho Code, shall not exceed fifty percent (50%) of the tax  lia-
 32        bility of the taxpayer. The tax liability of the taxpayer shall be the tax
 33        after deducting the credit allowed by section 63-3029, Idaho Code.
 34        (c)  The  credit  allowed  for  new  employees described in this paragraph
 35        shall apply to an employee who, in the calendar  year  ending  during  the
 36        taxable  year for which the credit is claimed, received annual earnings at
 37        an average rate of fifteen dollars and fifty cents ($15.50)  or  more  per
 38        hour  worked  and  who, during such calendar year, was eligible to receive
 39        employer provided coverage under an accident or health plan  described  in
 40        section 105 of the Internal Revenue Code.
 41        (d)  The  credit  allowed  for  new  employees described in this paragraph
 42        shall apply to an employee not described in subsection (2)(c) of this sec-
 43        tion and who is employed in a revenue-producing enterprise as  defined  in
                                                                        
                                           2
                                                                        
  1        section 63-3029E, Idaho Code.
  2        (3)  If  the  sum of the credit carryovers from the credit allowed by sub-
  3    section (2) of this section and the amount of credit for the taxable year from
  4    the credit allowed by subsection (2) of this  section  exceed  the  limitation
  5    imposed  by  subsection  (2) of this section for the current taxable year, the
  6    excess attributable to the current taxable year's credit  shall  be  a  credit
  7    carryover  to  the  three  (3)  succeeding taxable years. The entire amount of
  8    unused credit shall be carried forward  to  the  earliest  of  the  succeeding
  9    years, wherein the oldest available unused credit shall be used first, so long
 10    as the employment level for which the credit was granted is still maintained.
                                                                        
 11        SECTION  2.  An  emergency  existing  therefor,  which emergency is hereby
 12    declared to exist, this act shall be in full force and effect on and after its
 13    passage and approval, and retroactively to January 1, 2004.

Amendment


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-seventh Legislature                 Second Regular Session - 2004
                                                                        
                                                                        
                                                     Moved by    McKenzie            
                                                                        
                                                     Seconded by Werk                
                                                                        
                                                                        
                                       IN THE SENATE
                        SENATE AMENDMENT TO H.B. NO. 651, As Amended
                                                                        
  1                                AMENDMENT TO SECTION 1
  2        On page 1 of the engrossed bill, in line 37, delete  "twelve  dollars  and
  3    fifty cents ($12.50)" and insert: "fifteen dollars and fifty cents ($15.50)".
                                                                        
  4                                 CORRECTION TO TITLE
  5        On page 1, in line 4, delete "TWELVE" and insert: "FIFTEEN".
                                                     Moved by    Moyle               
                                                                        
                                                     Seconded by Cuddy               
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                              HOUSE AMENDMENT TO H.B. NO. 651
                                                                        
  6                                AMENDMENT TO SECTION 1
  7        On  page 1 of the printed bill, in line 22, delete "and" and insert: "or";
  8    in line 24, following "section" insert: ", but  not  both";  and  in  line  37
  9    delete  "fifteen dollars and fifty cents ($15.50)" and insert: "twelve dollars
 10    and fifty cents ($12.50)".
                                                                        
 11                                 CORRECTION TO TITLE
 12        On page 1, in line 4, delete "FIFTEEN DOLLARS"  and insert:  "TWELVE  DOL-
 13    LARS".

Engrossed Bill (Original Bill with Amendment(s) Incorporated)


                                                                        
                                                                        
  ]]]]              LEGISLATURE OF THE STATE OF IDAHO             ]]]]
 Fifty-seventh Legislature                 Second Regular Session - 2004
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                               HOUSE BILL NO. 651, As Amended
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO INCOME TAX CREDITS FOR NEW EMPLOYEES; AMENDING  SECTION  63-3029F,
  3        IDAHO  CODE,  TO PROVIDE THAT IN THE CASE OF CERTAIN NEW EMPLOYEES EARNING
  4        AN AVERAGE OF TWELVE DOLLARS AND FIFTY CENTS PER  HOUR  AND  ELIGIBLE  FOR
  5        EMPLOYER PROVIDED HEALTH AND ACCIDENT COVERAGE THE STATE INCOME TAX CREDIT
  6        SHALL  BE  ONE  THOUSAND  DOLLARS PER EMPLOYEE; DECLARING AN EMERGENCY AND
  7        PROVIDING RETROACTIVE APPLICATION.
                                                                        
  8    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  9        SECTION 1.  That Section 63-3029F, Idaho Code, be, and the same is  hereby
 10    amended to read as follows:
                                                                        
 11        63-3029F.  SPECIAL  CREDIT  AVAILABLE  --  NEW EMPLOYEES. (1) Any taxpayer
 12    shall be allowed a credit, in an amount determined  under  subsection  (2)  of
 13    this  section,  against  the  tax  imposed by this chapter, other than the tax
 14    imposed by section 63-3082, Idaho Code, for any taxable year during which  the
 15    taxpayer's  employment of new employees, as defined under section 63-3029E(1),
 16    Idaho Code, increases above the taxpayer's average employment for either:  (a)
 17    the  prior  taxable year, or (b) the average of three (3) prior taxable years,
 18    whichever is higher. No credit shall be allowed under this section unless  the
 19    number of new employees equals or exceeds one (1) person.
 20        (2)  (a) The credit authorized in subsection (1) of this section shall be:
 21             (i)   Ffive hundred dollars ($500) per new employee described in sub-
 22             section (2)(d) of this section; or
 23             (ii)  One  thousand  dollars  ($1,000)  per new employee described in
 24             subsection (2)(c) of this section, but not both.
 25        (b) but tThe total credit allowed by this section shall not  exceed  three
 26        and  one-quarter  percent (3.25%) of net income from the taxpayer's corpo-
 27        rate, proprietorship, partnership, small business corporation  or  limited
 28        liability  company  revenue-producing  enterprise  in which the employment
 29        occurred. Additionally, the total amount of this  and  all  other  credits
 30        allowed  under  this  chapter except for the credits allowed under section
 31        63-3029, Idaho Code, shall not exceed fifty percent (50%) of the tax  lia-
 32        bility of the taxpayer. The tax liability of the taxpayer shall be the tax
 33        after deducting the credit allowed by section 63-3029, Idaho Code.
 34        (c)  The  credit  allowed  for  new  employees described in this paragraph
 35        shall apply to an employee who, in the calendar  year  ending  during  the
 36        taxable  year for which the credit is claimed, received annual earnings at
 37        an average rate of twelve dollars and fifty cents  ($12.50)  or  more  per
 38        hour  worked  and  who, during such calendar year, was eligible to receive
 39        employer provided coverage under an accident or health plan  described  in
 40        section 105 of the Internal Revenue Code.
 41        (d)  The  credit  allowed  for  new  employees described in this paragraph
 42        shall apply to an employee not described in subsection (2)(c) of this sec-
 43        tion and who is employed in a revenue-producing enterprise as  defined  in
                                                                        
                                           2
                                                                        
  1        section 63-3029E, Idaho Code.
  2        (3)  If  the  sum of the credit carryovers from the credit allowed by sub-
  3    section (2) of this section and the amount of credit for the taxable year from
  4    the credit allowed by subsection (2) of this  section  exceed  the  limitation
  5    imposed  by  subsection  (2) of this section for the current taxable year, the
  6    excess attributable to the current taxable year's credit  shall  be  a  credit
  7    carryover  to  the  three  (3)  succeeding taxable years. The entire amount of
  8    unused credit shall be carried forward  to  the  earliest  of  the  succeeding
  9    years, wherein the oldest available unused credit shall be used first, so long
 10    as the employment level for which the credit was granted is still maintained.
                                                                        
 11        SECTION  2.  An  emergency  existing  therefor,  which emergency is hereby
 12    declared to exist, this act shall be in full force and effect on and after its
 13    passage and approval, and retroactively to January 1, 2004.
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                  HOUSE BILL NO. 651, As Amended, As Amended in the Senate
                                                                        
                             BY REVENUE AND TAXATION COMMITTEE
                                                                        
 14                                        AN ACT
 15    RELATING TO INCOME TAX CREDITS FOR NEW EMPLOYEES; AMENDING  SECTION  63-3029F,
 16        IDAHO  CODE,  TO PROVIDE THAT IN THE CASE OF CERTAIN NEW EMPLOYEES EARNING
 17        AN AVERAGE OF FIFTEEN DOLLARS AND FIFTY CENTS PER HOUR  AND  ELIGIBLE  FOR
 18        EMPLOYER PROVIDED HEALTH AND ACCIDENT COVERAGE THE STATE INCOME TAX CREDIT
 19        SHALL  BE  ONE  THOUSAND  DOLLARS PER EMPLOYEE; DECLARING AN EMERGENCY AND
 20        PROVIDING RETROACTIVE APPLICATION.
                                                                        
 21    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
 22        SECTION 3.  That Section 63-3029F, Idaho Code, be, and the same is  hereby
 23    amended to read as follows:
                                                                        
 24        63-3029F.  SPECIAL  CREDIT  AVAILABLE  --  NEW EMPLOYEES. (1) Any taxpayer
 25    shall be allowed a credit, in an amount determined  under  subsection  (2)  of
 26    this  section,  against  the  tax  imposed by this chapter, other than the tax
 27    imposed by section 63-3082, Idaho Code, for any taxable year during which  the
 28    taxpayer's  employment of new employees, as defined under section 63-3029E(1),
 29    Idaho Code, increases above the taxpayer's average employment for either:  (a)
 30    the  prior  taxable year, or (b) the average of three (3) prior taxable years,
 31    whichever is higher. No credit shall be allowed under this section unless  the
 32    number of new employees equals or exceeds one (1) person.
 33        (2)  (a) The credit authorized in subsection (1) of this section shall be:
 34             (i)   Ffive hundred dollars ($500) per new employee described in sub-
 35             section (2)(d) of this section; or
 36             (ii)  One  thousand  dollars  ($1,000)  per new employee described in
 37             subsection (2)(c) of this section, but not both.
 38        (b) but tThe total credit allowed by this section shall not  exceed  three
 39        and  one-quarter  percent (3.25%) of net income from the taxpayer's corpo-
 40        rate, proprietorship, partnership, small business corporation  or  limited
 41        liability  company  revenue-producing  enterprise  in which the employment
 42        occurred. Additionally, the total amount of this  and  all  other  credits
 43        allowed  under  this  chapter except for the credits allowed under section
 44        63-3029, Idaho Code, shall not exceed fifty percent (50%) of the tax  lia-
 45        bility of the taxpayer. The tax liability of the taxpayer shall be the tax
                                                                        
                                           3
                                                                        
  1        after deducting the credit allowed by section 63-3029, Idaho Code.
  2        (c)  The  credit  allowed  for  new  employees described in this paragraph
  3        shall apply to an employee who, in the calendar  year  ending  during  the
  4        taxable  year for which the credit is claimed, received annual earnings at
  5        an average rate of fifteen dollars and fifty cents ($15.50)  or  more  per
  6        hour  worked  and  who, during such calendar year, was eligible to receive
  7        employer provided coverage under an accident or health plan  described  in
  8        section 105 of the Internal Revenue Code.
  9        (d)  The  credit  allowed  for  new  employees described in this paragraph
 10        shall apply to an employee not described in subsection (2)(c) of this sec-
 11        tion and who is employed in a revenue-producing enterprise as  defined  in
 12        section 63-3029E, Idaho Code.
 13        (3)  If  the  sum of the credit carryovers from the credit allowed by sub-
 14    section (2) of this section and the amount of credit for the taxable year from
 15    the credit allowed by subsection (2) of this  section  exceed  the  limitation
 16    imposed  by  subsection  (2) of this section for the current taxable year, the
 17    excess attributable to the current taxable year's credit  shall  be  a  credit
 18    carryover  to  the  three  (3)  succeeding taxable years. The entire amount of
 19    unused credit shall be carried forward  to  the  earliest  of  the  succeeding
 20    years, wherein the oldest available unused credit shall be used first, so long
 21    as the employment level for which the credit was granted is still maintained.
                                                                        
 22        SECTION  4.  An  emergency  existing  therefor,  which emergency is hereby
 23    declared to exist, this act shall be in full force and effect on and after its
 24    passage and approval, and retroactively to January 1, 2004.

Statement of Purpose / Fiscal Impact




                       STATEMENT OF PURPOSE

                             RS 13811


This bill amends the Idaho income tax credit for new employees.  An
expanded credit of $1,000 will be available for any business that
adds new employees whose annual earnings average $15.50 or more and
who are eligible to receive employer provided coverage under an
accident or health plan.  The existing credit of $500 for new
employees in a natural resource based enterprise is retained
unchanged.  The increased credit will be available for employers'
taxable years beginning on and after January 1, 2004. 





                           FISCAL NOTE


Will allow additional credits against income tax of about $300,000
annually.  








Contact
Name:     Brian Whitlock
Agency:   Office of the Governor
Phone:    334-2100

STATEMENT OF PURPOSE/FISCAL NOTE                    H 651