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S1481..........................................by RESOURCES AND ENVIRONMENT RIPARIAN HABITAT - Amends existing law to revise procedures for approval and review of qualifying expenditures that would qualify for an income tax credit for improving riparian habitat. 02/16 Senate intro - 1st rdg - to printing 02/17 Rpt prt - to Res/Env
S1481|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fourth Legislature Second Regular Session - 1998IN THE SENATE SENATE BILL NO. 1481 BY RESOURCES AND ENVIRONMENT COMMITTEE 1 AN ACT 2 RELATING TO INCOME TAX CREDITS; AMENDING SECTION 22-2702, IDAHO CODE, TO 3 DEFINE SOIL CONSERVATION COMMISSION; AMENDING SECTION 63-3024B, IDAHO 4 CODE, TO REVISE PROCEDURES FOR DETERMINATION OF STATE INCOME TAX CREDITS 5 FOR QUALIFYING EXPENDITURES; DECLARING AN EMERGENCY AND PROVIDING RETROAC- 6 TIVE APPLICATION. 7 Be It Enacted by the Legislature of the State of Idaho: 8 SECTION 1. That Section 22-2702, Idaho Code, be, and the same is hereby 9 amended to read as follows: 10 22-2702. DEFINITIONS. As used in this chapter and section 63-3024B, Idaho 11 Code: 12 (1) "Riparian land" means the beds of streams, the adjacent vegetation 13 communities, and the land thereunder, which are predominantly influenced by 14 their association with water and which are privately owned. 15 (2) "Habitat conservation agreement" means the agreement between individ- 16 ual landowners and appropriate federal agencies which sets forth the plan the 17 landowner will follow in order to meet the requirements for recovery of a spe- 18 cies listed as "endangered" or "threatened" pursuant to the federal endangered 19 species act or to manage species considered to be "candidates" for listing 20 pursuant to the federal endangered species act. 21 (3) "Owner" means the party or parties having the fee interest in real 22 property except, where the real property is subject to a real estate sales 23 contract, "owner" means the contract vendee under a recorded contract. 24 (4) "Soil conservation commission" is the entity created in section 25 22-2718, Idaho Code. 26 (5) "Soil conservation districts" are legal subdivisions of Idaho 27 state government, responsible under chapter 27, title 22, Idaho Code, for 28 soil, water, and related resource conservation work within their boundaries. 29 (56 ) "Total maximum daily load" is defined in 30 section 39-3602, Idaho Code. 31 SECTION 2. That Section 63-3024B, Idaho Code, be, and the same is hereby 32 amended to read as follows: 33 63-3024B. INCOME TAX CREDITS. (1) Eligibility for income tax credits. Any 34 owner of real property who undertakes actions approved pursuant to: 35 (a) A total maximum daily load process or equivalent processes as set 36 forth in chapter 36, title 39, Idaho Code; or 37 (b) A habitat conservation plan for the management of a species listed as 38 "endangered," "threatened," or a candidate for such listing as set forth 39 in the federal endangered species act and approved as provided in the reg- 40 ulations adopted pursuant to the federal endangered species act; or 41 (c) A plan to recover a species listed as "threatened" or "endangered" 2 1 pursuant to the federal endangered species act; or 2 (d) A plan for fencing recommended for approval by the local soil conser- 3 vation district that will enhance riparian habitat and water quality shall 4 be eligible for income tax credits against individual or corporate income 5 taxes as set forth in this section. 6 (2) Expenditures qualifying for income tax credits. Expenditures which 7 are eligible for income tax credits as set forth in this section shall 8 include, but not be limited to, those in the following categories: 9 (a) Fencing of riparian areas as defined in this chapter to manage live- 10 stock grazing; 11 (b) Control of erosion from natural or human caused sources of sediment 12 which exist and are not otherwise regulated under the provisions of 13 Idaho's water quality management plan; 14 (c) Removal of barriers to fish passage and installation of devices to 15 prevent fish from entering into areas where their ability to survive is 16 limited; 17 (d) Gates and fences to control access and which are installed specifi- 18 cally to aid in the management of "endangered," "threatened" or 19 "candidate" species; 20 (e) Establishment of vegetation designed to improve habitat or food 21 sources for "endangered," "threatened," or "candidate" species; 22 (f) The mechanical construction or placement of structures to create or 23 improve habitat for "endangered," "threatened," or "candidate" species; or 24 (g) Other improvements or modifications made in order to comply with any 25 action required as defined in subsection (1) of this section. 26 The state tax commission, in cooperation with thedepartment of fish and27gamelocal soil conservation districts and the soil conservation 28 commission and other appropriate federal or state agencies, shall 29 develop rules to describe the specific expenditures eligible for the income 30 tax credits for each of the categories described in this section. 31 (3) Calculation and application of income tax credits. For those expendi- 32 tures eligible for income tax credits as described in this section, the credit 33 shall be equal to one-half (1/2) of the eligible expenditures made during the 34 course of the taxable year. This amount may be applied as a credit to each 35 person's total income tax liability. In no case shall the sum of these credits 36 exceed two thousand dollars ($2,000) for a single taxable year per person 37 .and in no event shall labor be included in determining the38amount of the tax credit. In the event of transfer of title to lands where39income tax credits have been taken, the application of the annual credits from40previous expenditures shall cease, and the new owner of the land shall not be41eligible to receive any income tax credits that are based upon the expendi-42tures made by any previous landowner.In no case shall the credit 43 allowed under this section exceed the income tax liability of the claimant. 44 For purposes of this section, a husband and wife filing a single return shall 45 be deemed a single person. 46 (4) Review and approval of qualified expenditures. All projects and 47 expenditures which may be eligible for tax credits as set forth in this sec- 48 tion shall be reviewed by thedesignated agency as defined in chapter4936, title 39, Idaho Code, and which are appropriate to the nature of the proj-50ect and expenditures for which approval is sought for the income tax credit51provided in this section. That agencylocal soil conservation 52 district supervisors. The local soil conservation district supervisors 53 will recommend approval or disapproval of the tax credits described in this 54 section toa committee which shall include one (1) representative each55from the department of agriculture, the department of fish and game, the soil3 1conservation commission, and the division of environmental quality, appointed2by the administrator or the director of those agencies or entities, and one3(1) representative from private industry to be appointed by the governor. This4committee, in consultation with the basin advisory groups established in chap-5ter 36, title 39, Idaho Code, shall have the authority, by majority vote, to6approve or disapprove all applications for tax credits as described in this7sectionthe soil conservation commission . In approving an 8 application for a tax credit, thecommitteesoil conserva- 9 tion commission shall strive to assure a reasonable distribution of 10 approved credits throughout the state and among the parties that are eligible 11 for the tax credits described in this section. In no case shall thecom-12mitteesoil conservation commission described in this sec- 13 tion approve, during a year, tax credits which exceed two hundred fifty thou- 14 sand dollars ($250,000) in total. Thecommitteesoil con- 15 servation commission shall transmit its minutes and approvals to the 16 state tax commission. Thecommitteesoil conservation com- 17 mission shall notify each owner of real property in writing whether the 18 owner has been approved, or disapproved for an income tax credit pursuant to 19 this section. 20 SECTION 3. An emergency existing therefor, which emergency is hereby 21 declared to exist, this act shall be in full force and effect on and after its 22 passage and approval, and retroactively to January 1, 1998.
STATEMENT OF PURPOSE
RS08047
The purpose of this measure is to streamline the process of
application for the Natural Resources Income Tax credit. This measure
was passed in the 1997 Legislative Session. Over the interim, it was
determined that the rules as required by the statute would be
cumbersome and take a great amount of staff time. This measure
establishes the soil conservation districts as the lead local agency and the
soil conservation commission as the lead state agency to ensure fair
statewide distribution.
FISCAL NOTE
There would be a significant amount of savings in staff time.
CONTACT: Senator Clint Stennett
332- 1358
S 1481