View Daily Data Tracking History
View Bill Text
View Amendment
View Statement of Purpose / Fiscal Impact
H0109aa.............................................by REVENUE AND TAXATION
INCOME TAX - Amends existing income tax law to change the net operating
loss carryback from three years to two years; to change the net operating
loss carryforward from fifteen to twenty years; and to clarify that certain
losses are deductible for a corporation or for any corporation filing as a
combined group if the loss occurred when business was being transacted in
Idaho.
01/26 House intro - 1st rdg - to printing
01/27 Rpt prt - to Rev/Tax
02/08 Rpt out - to Gen Ord
02/10 Rpt out amen - to engros
02/11 Rpt engros - 1st rdg - to 2nd rdg as amen
02/11 1st rdg - to 2nd rdg as amen
02/12 2nd rdg - to 3rd rdg as amen
02/15 3rd rdg as amen - PASSED - 62-1-6
AYES -- Alltus, Barraclough, Barrett, Bell, Bieter, Black, Boe,
Bruneel, Callister, Campbell, Clark, Crow, Cuddy, Deal, Denney,
Ellsworth, Field(13), Field(20), Gagner, Geddes, Gould, Hammond,
Hansen(23), Hansen(29), Henbest, Hornbeck, Jaquet, Jones, Judd,
Kellogg, Kempton, Kunz, Lake, Limbaugh, Linford, Mader, Marley,
McKague, Meyer, Montgomery, Mortensen, Moyle, Pomeroy, Reynolds,
Ridinger, Ringo, Robison, Schaefer, Sellman, Smith, Stevenson, Stone,
(Taylor)Taylor, Tilman, Tippets, Trail, Watson, Wheeler, Williams,
Wood, Zimmermann, Mr Speaker
NAYS -- Stoicheff
Absent and excused -- Chase, Hadley, Kendell, Loertscher, Pischner,
Sali
Dist. 15, Seat A, Vacant
Floor Sponsor - Lake
Title apvd - to Senate
02/16 Senate intro - 1st rdg as amen - to Loc Gov
02/22 Rpt out - rec d/p - to 2nd rdg as amen
02/23 2nd rdg - to 3rd rdg as amen
03/09 3rd rdg as amen - PASSED - 33-0-2
AYES--Andreason, Boatright, Branch, Bunderson, Burtenshaw, Cameron,
Crow, Danielson, Darrington, Davis, Deide, Dunklin, Frasure, Geddes,
Hawkins, Ingram, Keough, King, Lee, McLaughlin, Noh, Richardson,
Riggs, Risch, Sandy, Schroeder, Sorensen, Stegner, Stennett, Thorne,
Twiggs, Wheeler, Whitworth
NAYS--None
Absent and excused--Ipsen, Parry
Floor Sponsor - Thorne
Title apvd - to House
03/10 To enrol
03/11 Rpt enrol - Sp signed
03/12 Pres signed
03/15 To Governor
03/17 Governor signed
Session Law Chapter 70
Effective: 01/01/2000
H0109|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999IN THE HOUSE OF REPRESENTATIVES HOUSE BILL NO. 109, As Amended BY REVENUE AND TAXATION COMMITTEE 1 AN ACT 2 RELATING TO INCOME TAXES; AMENDING SECTION 63-3022, IDAHO CODE, TO CHANGE THE 3 NET OPERATING LOSS CARRYBACK FROM THREE YEARS TO TWO YEARS, TO CHANGE THE 4 NET OPERATING LOSS CARRYFORWARD FROM FIFTEEN TO TWENTY YEARS, TO CLARIFY 5 THAT CERTAIN LOSSES ARE DEDUCTIBLE FOR A CORPORATION OR FOR ANY CORPORA- 6 TION FILING AS A COMBINED GROUP IF THE LOSS OCCURRED WHEN BUSINESS WAS 7 BEING TRANSACTED IN IDAHO, AND TO MAKE TECHNICAL CORRECTIONS; AND PROVID- 8 ING AN EFFECTIVE DATE. 9 Be It Enacted by the Legislature of the State of Idaho: 10 SECTION 1. That Section 63-3022, Idaho Code, be, and the same is hereby 11 amended to read as follows: 12 63-3022. ADJUSTMENTS TO TAXABLE INCOME. The additions and subtractions 13 set forth in this section, and in sections 63-3022A through 63-3022M, Idaho 14 Code, are to be applied to the extent allowed in computing Idaho taxable 15 income: 16 (a) Add any state taxes, measured by net income, paid or accrued during 17 the taxable year adjusted for state tax refunds used in arriving at taxable 18 income. 19 (b) Add the net operating loss deduction used in arriving at taxable 20 income. 21 (c) (1) A net operating loss for any taxable year commencing on and after 22 January 1, 19909 , shall be a net operating loss 23 carryback not to exceed a total of one hundred thousand dollars ($100,000) 24 to thethreetwo (32 ) 25 immediately preceding taxable years. Any portion of the net operating loss 26 not subtracted in thethreetwo (3272 ) preceding years may be subtracted in the next28fifteentwenty (1520 ) years 29 succeeding the taxable year in which the loss arises in order until 30 exhausted. The sum of the deductions may not exceed the amount of the net 31 operating loss deduction incurred. At the election of the taxpayer, the 32threetwo (32 ) year 33 carryback may be foregone and the loss subtracted from income received in 34 taxable years arising in the nextfifteentwenty 35 (1520 ) years succeeding the taxable year in 36 which the loss arises in order until exhausted. The election shall be made 37 as under section 172(b)(3) of the Internal Revenue Code. An election under 38 this subsection must be in the manner prescribed in the rules of the state 39 tax commission and once made is irrevocable for the year in which it is 40 made. The term "income" as used in this subsection (c) means Idaho taxable 41 income as defined in this chapter as modified by section 63-3021(b)(2), 42 (3) and (4), Idaho Code. 43 (2) Net operating losses incurred by a corporation during a year in which 2 1 such corporation did not transact business in Idaho or was not included in 2 a group of corporations combined under subsection (t) of section 63-3027, 3 Idaho Code, may not be subtracted. However, if at least one (1) cor- 4 poration within a group of corporations combined under subsection (t) of 5 section 63-3027, Idaho Code, was transacting business in Idaho during the 6 taxable year in which the loss was incurred, then the net operating loss 7 may be subtracted. Net operating losses incurred by a person, other 8 than a corporation, in business activities not taxable by Idaho may not be 9 subtracted. 10 (d) In the case of a corporation, add the amount deducted under the pro- 11 visions of sections 243(a) and (c), 244, 245 and 246A of the Internal Revenue 12 Code (relating to dividends received by corporations) as limited by section 13 246(b)(1) of said code. 14 (e) In the case of a corporation, subtract an amount determined under 15 section 78 of the Internal Revenue Code to be taxable as dividends. 16 (f) Subtract the amount of any income received or accrued during the tax- 17 able year which is exempt from taxation by this state, under the provisions of 18 any other law of this state or a law of the United States, if not previously 19 subtracted in arriving at taxable income. 20 (g) In the case of corporations and partnerships, add Idaho taxable 21 income of nonresident officers, directors, shareholders, partners or members 22 to the extent such income is attributed to the corporation or partnership in 23 section 63-3022L, Idaho Code. 24 (h) For the purpose of determining the Idaho taxable income of the bene- 25 ficiary of a trust or of an estate, distributable net income as defined for 26 federal tax purposes shall be corrected for the other adjustments required by 27 this section. In the event that a nonresident beneficiary of a trust or estate 28 fails to file an Idaho income tax return reporting all or any part of distrib- 29 utable net income taxable in Idaho or fails to pay any tax due thereon, the 30 trust or estate making the payment or distribution shall be taxable upon the 31 amount of such distribution or payment at the rates established by section 32 63-3024, Idaho Code. 33 (i) In the case of an individual who is on active duty as a full-time 34 officer, enlistee or draftee, with the armed forces of the United States, 35 which full-time duty is or will be continuous and uninterrupted for one hun- 36 dred twenty (120) consecutive days or more, deduct compensation paid by the 37 armed forces of the United States for services performed outside this state. 38 The deduction is allowed only to the extent such income is included in taxable 39 income, and provided that appropriate adjustments shall be made in determining 40 the deductions and exemptions allowed pursuant to section 63-3026A(4), Idaho 41 Code. 42 (j) In the case of a corporation , including any corporation 43 included in a group of corporations combined under subsection (t) of section 44 63-3027, Idaho Code , add any capital loss deducted which loss was 45 incurred during any year in which such corporation did not transact business 46 in Idaho .unless theHowever, do not add any 47 capital loss deducted if a corporation ,was included48including any corporation in a group of corporations com- 49 bined under subsection (t) of section 63-3027, Idaho Code , was transact- 50 ing business in Idaho during the taxable year in which the loss was incurred 51 . In the case of persons, other than corporations, add any capital loss 52 deducted which was incurred in business activities not taxable by Idaho at the 53 time such loss was incurred. In computing the income taxable to an S corpora- 54 tion or partnership under this section, deduction shall not be allowed for a 55 carryover or carryback of a net operating loss provided for in subsection (c) 3 1 of this section or a capital loss provided for in section 1212 of the Internal 2 Revenue Code. 3 (k) In the case of an individual, there shall be allowed as a deduction 4 from gross income either (1) or (2) at the option of the taxpayer: 5 (1) The standard deduction as defined in section 63, Internal Revenue 6 Code. 7 (2) Itemized deductions as defined in section 63 of the Internal Revenue 8 Code except state income taxes as specified in section 164 of the Internal 9 Revenue Code. 10 (l) Add the taxable amount of any lump sum distribution deducted from 11 gross income pursuant to section 402(d)(3) of the Internal Revenue Code. The 12 taxable amount will include the ordinary income portion and the amount eligi- 13 ble for the capital gain election. 14 (nm ) Deduct any amounts included in gross 15 income under the provisions of section 86 of the Internal Revenue Code relat- 16 ing to certain social security and railroad benefits. 17 (on ) In the case of a self-employed individual, 18 deduct the actual cost of premiums paid to secure worker's compensation insur- 19 ance for coverage in Idaho, if such cost has not been deducted in arriving at 20 taxable income. 21 SECTION 2. This act shall be in full force and effect on and after Janu- 22 ary 1, 2000.
AH0109|||| LEGISLATURE OF THE STATE OF IDAHO |||| Fifty-fifth Legislature First Regular Session - 1999Moved by Lake Seconded by Linford IN THE HOUSE OF REPRESENTATIVES HOUSE AMENDMENT TO H.B. NO. 109 1 AMENDMENT TO BILL 2 On page 3 of the printed bill, delete lines 14, 15 and 16 and insert: 3 "SECTION 2. This act shall be in full force and effect on and after Janu- 4 ary 1, 2000.". 5 CORRECTIONS TO TITLE 6 On page 1, in line 7, delete "DECLARING AN"; in line 8, delete "EMERGENCY" 7 and also in line 8, delete "A RETROACTIVE" and insert: "AN".
STATEMENT OF PURPOSE
RS08413C1
This bill amends the Idaho Income Tax Act as it relates to the
carryover and carryback of net operating losses (NOL). It amends
section 63-3022(c), Idaho Code, to change the net operating loss
carryback period from three to two years and the carry forward
period from fifteen to twenty years. The change applies to losses
incurred in taxable years beginning on and after January l, l999.
The bill also clarifies that deductible losses must be attributable
to Idaho.
The two-year carryback and twenty-year carryforward conforms to
the federal rules for NOL deductions.
FISCAL NOTE
No fiscal effect in FY 2000.
CONTACT: Dan John/Ted Spangler
Agency State Tax Commission
Phone: 334-7530
STATEMENT OF PURPOSE/ FISCAL NOTE Bill No.H 109