1998 Legislation
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SENATE BILL NO. 1481 – Riparian habitat/tax credit/procedr


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Daily Data Tracking History

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

Bill Text


 ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
Fifty-fourth Legislature                 Second Regular Session - 1998

                                      IN THE SENATE

                                   SENATE BILL NO. 1481


 1                                        AN ACT

 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        ( 5  6 )  "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"


 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 the  department of fish and
27    game   local 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 the
38    amount of the tax credit. In the event of transfer of  title  to  lands  where
39    income tax credits have been taken, the application of the annual credits from
40    previous  expenditures shall cease, and the new owner of the land shall not be
41    eligible to receive any income tax credits that are based  upon  the  expendi-
42    tures  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 the  designated agency as  defined  in  chapter
49    36, title 39, Idaho Code, and which are appropriate to the nature of the proj-
50    ect  and  expenditures  for which approval is sought for the income tax credit
51    provided in this section. That agency     local  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  to   a committee which shall include one (1) representative each
55    from the department of agriculture, the department of fish and game, the  soil


 1    conservation  commission, and the division of environmental quality, appointed
 2    by the administrator or the director of those agencies or  entities,  and  one
 3    (1) representative from private industry to be appointed by the governor. This
 4    committee, in consultation with the basin advisory groups established in chap-
 5    ter  36,  title 39, Idaho Code, shall have the authority, by majority vote, to
 6    approve or disapprove all applications for tax credits as  described  in  this
 7    section    the soil conservation commission . In approving an
 8    application for a tax credit, the  committee   soil  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 the  com-
12    mittee   soil 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. The  committee    soil  con-
15    servation  commission    shall transmit its minutes and approvals to the
16    state tax commission. The  committee   soil 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 / Fiscal Impact


                            STATEMENT OF PURPOSE
        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